Flynn Properties Acquired Historic San Francisco Building

The firm secured the 225 Bush Street office tower through a deed-in-lieu of foreclosure transaction.

Updated on Sept. 25, 2026 in Commercial

Ornate historic stone facade of a classical revival office tower in San Francisco under diffuse overcast light. — Flynn Properties has acquired the historic 225 Bush Street office tower in San Francisco for $221 million following a loan default by the previous owner. AI Illustration. Upload story photo >

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Flynn Properties has taken ownership of the 585,450-square-foot office tower at 225 Bush Street in San Francisco. The firm acquired the property for $221 million after the previous owner, Kylli, defaulted on a $350 million loan.

Why it matters

The deal marks a significant shift in San Francisco real estate as the office tower, originally constructed as the Standard Oil Company headquarters, changes hands following a major loan default. Flynn Properties plans to reposition the asset to improve occupancy rates from its current level of 55 percent.

The 22-story building encompasses 585,450 square feet and was valued most recently at $228 million. The transaction reflects a price of approximately $377 per square foot for the historic office space.

The players

Flynn Properties

This is a real estate investment firm that has previously owned the 225 Bush Street property.

Kylli

This entity was the previous owner of the 225 Bush Street office tower and defaulted on the building's loan.

The details

Flynn Properties, which previously owned the building in 2000 and 2012, acquired the loan to facilitate the deed-in-lieu transaction. The firm intends to modernize the property by adding a new fitness center, a speakeasy, common areas, and a revamped lobby.

The office tower at 225 Bush Street was constructed in 1922.
Flynn Properties first held ownership of the building in 2000.
The previous owner defaulted on the building loan in November 2024.
The deed-in-lieu transaction closed on September 24, 2026.

Culture Shift

The acquisition follows the broader pattern seen during the 2024 San Francisco commercial real estate loan default cycle where lenders have taken control of office assets. This trend highlights the ongoing efforts to stabilize the Financial District by repurposing legacy office space.

The planned additions of a fitness center and lobby upgrades may alter the daily work environment for current tenants in the building. Residents in the Financial District can expect construction activity as the new owners begin their planned renovations.

The takeaway

The move demonstrates a strategic reinvestment in aging historic office assets within the Financial District. Such acquisitions indicate a shift toward high-end amenity upgrades to attract occupants in a challenging commercial market.