Zurich Reacquired San Francisco Office Building

The firm purchased 410 Townsend Street for $47 million this September, marking a return to the asset.

Updated on Sept. 29, 2026 in Commercial

Bold vector editorial illustration of a mid-rise brick commercial building with large windows and structural framing, set against a teal background. — Zurich Alternative Asset Management acquired the 410 Townsend Street office building for $47 million, signaling potential market recovery in San Francisco. AI Illustration. Upload story photo >

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Zurich Alternative Asset Management bought the office building at 410 Townsend Street in San Francisco for $47 million in September 2026. This transaction reflects a broader trend of firms repurchasing previously sold commercial real estate at discounted prices.

Why it matters

The acquisition underscores growing investor confidence in the recovery of the San Francisco office market. As the AI industry fuels demand for space, companies are betting on long-term growth in the city's commercial sector.

The property at 410 Townsend Street previously sold for $86 million in 2019 and $22 million in 2024. San Francisco vacancy rates reached 37% in Q2 2024 compared to a 3.6% vacancy rate in Q1 2019.

The players

Zurich Alternative Asset Management

This investment firm specializes in managing alternative asset portfolios and recently repurchased property in the San Francisco market.

Flynn Properties

This real estate investment and management company is active in the San Francisco office market and recently purchased 225 Bush Street.

The details

Zurich Alternative Asset Management previously owned the 410 Townsend Street site after an initial 2013 purchase for $49 million. Concurrently, Flynn Properties also completed a separate acquisition at 225 Bush Street as commercial firms seek value in the recovering market.

Zurich first purchased the property for $49 million in 2013.
San Francisco vacancy rates stood at 3.6% in Q1 2019.
The building sold for $86 million in 2019.
Vacancy rates peaked at 37% during Q2 2024.
Zurich reacquired the building for $47 million in September 2026.

Culture Shift

This deal tracks against the San Francisco office vacancy rate shift from 3.6% in 2019 to 37% in 2024. The acquisition follows the pattern of firms leveraging record-high vacancy rates to acquire discounted assets.

The return of institutional investors suggests that professional services and AI-driven businesses may soon see more refurbished office options in the area. Local commuters and residents should expect increased activity at 410 Townsend Street as the firm prepares the site for new tenants.

The takeaway

Commercial real estate firms are increasingly identifying value in markets hit by high vacancy rates following the pandemic. Investors looking at similar markets should monitor the AI sector's real estate needs as a primary indicator for commercial property recovery.