Joshua Bote

Kevin Truong

A receiver for the long-struggling <a href="https://sfstandard.com/2023/08/27/san-francisco-nordstrom-shoppers-say-goodbye/">San Francisco Centre</a> has been appointed by a San Francisco judge—indicating that the saga of the long-struggling Downtown San Francisco mall, formerly co-owned by shopping conglomerate Westfield, is reaching its next chapter.

Inside the downtown San Francisco Nordstrom on its last day

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<p>A receiver for the long-struggling <a href="https://sfstandard.com/2023/08/27/san-francisco-nordstrom-shoppers-say-goodbye/">San Francisco Centre</a> has been appointed by a San Francisco judge—indicating that the saga of the long-struggling Downtown San Francisco mall, formerly co-owned by shopping conglomerate Westfield, is reaching its next chapter.</p>

According to a filing made in San Francisco Superior Court Monday, Gregg Williams, with the Laguna Beach-based Trident Pacific Real Estate Group, was appointed the receiver of the San Francisco Centre. A receiver is a third-party individual in charge of managing a property during ongoing litigation.&nbsp;

<p>According to a filing made in San Francisco Superior Court Monday, Gregg Williams, with the Laguna Beach-based Trident Pacific Real Estate Group, was appointed the receiver of the San Francisco Centre. A receiver is a third-party individual in charge of managing a property during ongoing litigation.&nbsp;</p>

The appointment of the receiver was made after a suit filed by Wilmington Trust and Wells Fargo Bank, alleging entities associated with Westfield had defaulted on their loan payments. Brookfield, who was a partial owner of the property with Westfield, was not named in the suit.&nbsp;

<p>The appointment of the receiver was made after a suit filed by Wilmington Trust and Wells Fargo Bank, alleging entities associated with Westfield had defaulted on their loan payments. Brookfield, who was a partial owner of the property with Westfield, was not named in the suit.&nbsp;</p>

In this case, the conflict stems from a lawsuit filed on Sept. 29 by Wilmington Trust and Wells Fargo aiming to force foreclosure on the mall, put the property into receivership and sell it off. The plaintiffs are the lenders for a $558 million loan that was secured by nearly 800,000 square feet of space in the San Francisco Centre. News of the suit was <a href="https://therealdeal.com/sanfrancisco/2023/10/09/westfield-centre-lenders-sue-to-put-sf-mall-in-receivership/">first reported by The Real Deal</a>.

<p>In this case, the conflict stems from a lawsuit filed on Sept. 29 by Wilmington Trust and Wells Fargo aiming to force foreclosure on the mall, put the property into receivership and sell it off. The plaintiffs are the lenders for a $558 million loan that was secured by nearly 800,000 square feet of space in the San Francisco Centre. News of the suit was <a href="https://therealdeal.com/sanfrancisco/2023/10/09/westfield-centre-lenders-sue-to-put-sf-mall-in-receivership/">first reported by The Real Deal</a>.</p>

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The lawsuit claims that entities connected to Westfield have defaulted on $558 million in outstanding debt and have racked up $5.6 million in additional interest and fees since halting debt payments in June. The suit notes that the interest and fees are “still accruing until the Loan is repaid in full.” Attorneys for the lenders did not respond to a request for comment.

<p>The lawsuit claims that entities connected to Westfield have defaulted on $558 million in outstanding debt and have racked up $5.6 million in additional interest and fees since halting debt payments in June. The suit notes that the interest and fees are “still accruing until the Loan is repaid in full.” Attorneys for the lenders did not respond to a request for comment.</p>

&#8220;Appointment of a receiver is an important first legal step to protect the cashflow and the physical asset. The receiver is an objective third party that has the authority to manage, reposition and sell the asset,&#8221; said Brad&nbsp;Blake, managing partner of Blake Griggs&nbsp;Properties, who has served as a receiver on other properties.

<p>"Appointment of a receiver is an important first legal step to protect the cashflow and the physical asset. The receiver is an objective third party that has the authority to manage, reposition and sell the asset," said Brad&nbsp;Blake, managing partner of Blake Griggs&nbsp;Properties, who has served as a receiver on other properties. </p>

<p>&#8220;Appointment of a receiver is an important first legal step to protect the cashflow and the physical asset. The receiver is an objective third party that has the authority to manage, reposition and sell the asset,&#8221; said Brad&nbsp;Blake, managing partner of Blake Griggs&nbsp;Properties, who has served as a receiver on other properties. </p>

The San Francisco Centre owners said in June that they would <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">give the mall back to their lender</a>, an event predicated by the decision of <a href="https://sfstandard.com/2023/05/02/nordstroms-exit-from-san-francisco-calls-downtown-malls-future-into-question/">Nordstrom not to renew its lease</a>, leaving a huge hole across five floors of the mall.

Westfield gives up downtown San Francisco mall

Nordstrom&#8217;s exit from San Francisco calls downtown mall&#8217;s future into question

<p>The San Francisco Centre owners said in June that they would <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">give the mall back to their lender</a>, an event predicated by the decision of <a href="https://sfstandard.com/2023/05/02/nordstroms-exit-from-san-francisco-calls-downtown-malls-future-into-question/">Nordstrom not to renew its lease</a>, leaving a huge hole across five floors of the mall.</p>

According to a court filing, Williams will be responsible for nearly every aspect of the mall’s operations—from changing the door locks and security codes, handling repairs and permitting issues, hiring security guards and other workers and possibly liquidating the property altogether.

<p>According to a court filing, Williams will be responsible for nearly every aspect of the mall’s operations—from changing the door locks and security codes, handling repairs and permitting issues, hiring security guards and other workers and possibly liquidating the property altogether.</p>

Important to the plaintiffs, the receiver also has the responsibility to collect rents and revenues from the mall and disburse the funds to the lender after paying operating expenses. Williams did not respond to a request for comment.

<p>Important to the plaintiffs, the receiver also has the responsibility to collect rents and revenues from the mall and disburse the funds to the lender after paying operating expenses. Williams did not respond to a request for comment.</p>

Westfield made their plans to transfer management of the Downtown mall in June, adding that the transferral would allow them to “appoint a receiver to operate the property going forward.” Per the suit, the borrowers wrote to lenders “that they will wait for the receiver to be appointed so the receiver can pay operating expenses.”

<p>Westfield made their plans to transfer management of the Downtown mall in June, adding that the transferral would allow them to “appoint a receiver to operate the property going forward.” Per the suit, the borrowers wrote to lenders “that they will wait for the receiver to be appointed so the receiver can pay operating expenses.”</p>

The Westfield companies allegedly notified lenders about their non-payment of operating expenses on Sept. 12, according to the suit, which was an additional breach of the loan terms.

<p>The Westfield companies allegedly notified lenders about their non-payment of operating expenses on Sept. 12, according to the suit, which was an additional breach of the loan terms.</p>

By failing to make payments for the loan—and for halting payment required to maintain the property, according to the suit, the borrowers “severely and immediately threaten the integrity, well-being and value of the property, including security and tenant relations.”&nbsp;

<p>By failing to make payments for the loan—and for halting payment required to maintain the property, according to the suit, the borrowers “severely and immediately threaten the integrity, well-being and value of the property, including security and tenant relations.”&nbsp;</p>

&#8220;For more than 20 years, Westfield has proudly and successfully operated San Francisco Centre, investing significantly over that time in the vitality of the property,&#8221; a spokesperson for Unibail-Rodamco-Westfield, which owns the Westfield brand, said in a statement to The Standard.

<p>"For more than 20 years, Westfield has proudly and successfully operated San Francisco Centre, investing significantly over that time in the vitality of the property," a spokesperson for Unibail-Rodamco-Westfield, which owns the Westfield brand, said in a statement to The Standard. </p>

<p>&#8220;For more than 20 years, Westfield has proudly and successfully operated San Francisco Centre, investing significantly over that time in the vitality of the property,&#8221; a spokesperson for Unibail-Rodamco-Westfield, which owns the Westfield brand, said in a statement to The Standard. </p>

&#8220;Given the challenging operating conditions in downtown San Francisco, which have led to declines in sales, occupancy and foot traffic, we have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward. San Francisco Centre’s debt is non-recourse and this action has no impact on the rest of URW’s debt.&#8221;

<p>"Given the challenging operating conditions in downtown San Francisco, which have led to declines in sales, occupancy and foot traffic, we have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward. San Francisco Centre’s debt is non-recourse and this action has no impact on the rest of URW’s debt."</p>

<p>&#8220;Given the challenging operating conditions in downtown San Francisco, which have led to declines in sales, occupancy and foot traffic, we have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward. San Francisco Centre’s debt is non-recourse and this action has no impact on the rest of URW’s debt.&#8221;</p>

New development could lead to sale of struggling downtown San Francisco mall

Kevin V. Nguyen

The first thing one notices when entering Notion’s new downtown San Francisco headquarters is the artwork. Not because it&#8217;s grandiose, but because it all rests on the floor, leaning against the walls.&nbsp;

<p>The first thing one notices when entering Notion’s new downtown San Francisco headquarters is the artwork. Not because it's grandiose, but because it all rests on the floor, leaning against the walls.&nbsp;</p>

<p>The first thing one notices when entering Notion’s new downtown San Francisco headquarters is the artwork. Not because it&#8217;s grandiose, but because it all rests on the floor, leaning against the walls.&nbsp;</p>

The C-suite wanted their offices to have a casual, residential feel, but the reason the art isn’t hung is so that any piece can easily be picked up and moved — similar to the interface of Notion’s collaboration platform, which has <a href="https://www.forbes.com/sites/alexkonrad/2021/10/08/notion-raises-at-10-billion-valuation-boosted-by-remote-work-tiktok/">exploded in popularity</a> since the pandemic.&nbsp;

<p>The C-suite wanted their offices to have a casual, residential feel, but the reason the art isn’t hung is so that any piece can easily be picked up and moved — similar to the interface of Notion’s collaboration platform, which has <a href="https://www.forbes.com/sites/alexkonrad/2021/10/08/notion-raises-at-10-billion-valuation-boosted-by-remote-work-tiktok/">exploded in popularity</a> since the pandemic.&nbsp;</p>

“The office should feel like an extension of our product,” said cofounder Akshay Kothari. It’s also why every floor is painted <a href="https://www.benjaminmoore.com/en-us/paint-colors/color/2158-70/cream-froth">Cream Froth</a>, matching the software’s signature color.&nbsp;

<p>“The office should feel like an extension of our product,” said cofounder Akshay Kothari. It’s also why every floor is painted <a href="https://www.benjaminmoore.com/en-us/paint-colors/color/2158-70/cream-froth">Cream Froth</a>, matching the software’s signature color.&nbsp;</p>

Last month, the company, which has a $10 billion valuation, made its move to the Monadnock Building at 685 Market St., migrating north from the Mission, where it had been based since its founding in 2013.&nbsp;

<p>Last month, the company, which has a $10 billion valuation, made its move to the Monadnock Building at 685 Market St., migrating north from the Mission, where it had been based since its founding in 2013.&nbsp;</p>

Notion co-founder and Chief Operating Officer Akshay Kothari scales a marble staircase inside Notion's new headquarters in San Francisco on Thursday, June 5, 2025. The emerging AI giant has signed a 10-year direct deal for five floors of the century-old building.


<figure class="wp-block-image alignwide size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2025/06/img_4803.jpg?w=2500" alt="Notion co-founder and Chief Operating Officer Akshay Kothari scales a marble staircase inside Notion's new headquarters in San Francisco on Thursday, June 5, 2025. The emerging AI giant has signed a 10-year direct deal for five floors of the century-old building." class="wp-image-408311"/><figcaption class="wp-element-caption">Notion co-founder and Chief Product Officer Akshay Kothari.</figcaption></figure>


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<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/06/img_4803.jpg?w=2500" alt="Notion co-founder and Chief Operating Officer Akshay Kothari scales a marble staircase inside Notion's new headquarters in San Francisco on Thursday, June 5, 2025. The emerging AI giant has signed a 10-year direct deal for five floors of the century-old building." class="wp-image-408311"/><figcaption class="wp-element-caption">Notion co-founder and Chief Product Officer Akshay Kothari.</figcaption></figure>

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Members of Notion's Environment team work inside Notion's new headquarters in San Francisco on Thursday, June 5, 2025. The emerging AI giant has signed a 10-year direct deal for five floors of the century-old building.

Notion signed a 10-year direct lease and is in the process of occupying five floors spanning 100,000 square feet, doubling the size of its previous headquarters. Kothari said there is an understanding with the landlord, Brookfield, that Notion gets first dibs on available space in the rest of the 10-story building, built a year after the devastating 1906 earthquake.

<p>Notion signed a 10-year direct lease and is in the process of occupying five floors spanning 100,000 square feet, doubling the size of its previous headquarters. Kothari said there is an understanding with the landlord, Brookfield, that Notion gets first dibs on available space in the rest of the 10-story building, built a year after the devastating 1906 earthquake.</p>

The move marks a milestone for a company that nearly folded a decade ago, before its founders <a href="https://youtu.be/IIPKMixTMfE?si=7bzayyq_2Ih0Ryvb&amp;t=650">pivoted</a> from catering to software developers to providing a platform for use by the general public. “Notion nerds,” as they are sometimes known, <a href="https://sfstandard.com/2024/10/25/google-docs-notion-nerds-productivity-software/">use the tool for everything</a> from daily journals to travel planners to <a href="https://www.notion.com/templates/polyamory-couple-s-dashboard">an organizer for polycules</a>.

The superfans using a niche productivity app as a second brain

<p>The move marks a milestone for a company that nearly folded a decade ago, before its founders <a href="https://youtu.be/IIPKMixTMfE?si=7bzayyq_2Ih0Ryvb&amp;t=650">pivoted</a> from catering to software developers to providing a platform for use by the general public. “Notion nerds,” as they are sometimes known, <a href="https://sfstandard.com/2024/10/25/google-docs-notion-nerds-productivity-software/">use the tool for everything</a> from daily journals to travel planners to <a href="https://www.notion.com/templates/polyamory-couple-s-dashboard">an organizer for polycules</a>.</p>

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Notion has raised more than $330 million in funding, claims 100 million users, and has more than 1,000 employees worldwide, half of them in San Francisco. Kothari said the company requires employees to come into the office Mondays, Thursdays, and one other day each week.&nbsp;

<p>Notion has raised more than $330 million in funding, claims 100 million users, and has more than 1,000 employees worldwide, half of them in San Francisco. Kothari said the company requires employees to come into the office Mondays, Thursdays, and one other day each week.&nbsp;</p>

“Even during the thick of the pandemic, we never hired for remote-first roles,” Kothari said. “Our mantra is that when you can come in, please do. We believe in the value of being together in person.”&nbsp;

<p>“Even during the thick of the pandemic, we never hired for remote-first roles,” Kothari said. “Our mantra is that when you can come in, please do. We believe in the value of being together in person.”&nbsp;</p>

After getting the keys in January, it took Michael McGinley, Notion’s real estate leader, four months to renovate the top three floors of the Monadnock Building. That involved spraying the ceilings with acoustic foam and building out 18 meeting rooms per floor, named for “timeless” tools like the Le Creuset Dutch oven and the binder clip. Each floor is also packed with 17 phone booths.&nbsp;

<p>After getting the keys in January, it took Michael McGinley, Notion’s real estate leader, four months to renovate the top three floors of the Monadnock Building. That involved spraying the ceilings with acoustic foam and building out 18 meeting rooms per floor, named for “timeless” tools like the Le Creuset Dutch oven and the binder clip. Each floor is also packed with 17 phone booths.&nbsp;</p>

One of the building’s most striking qualities is a central atrium that allows in natural light from all directions. “This was one of the last properties we toured, and we all fell in love with it,” McGinley said, pointing to its Beaux-Arts character and Brookfield’s commitment to helping pay for renovations.&nbsp;

<p>One of the building’s most striking qualities is a central atrium that allows in natural light from all directions. “This was one of the last properties we toured, and we all fell in love with it,” McGinley said, pointing to its Beaux-Arts character and Brookfield’s commitment to helping pay for renovations.&nbsp;</p>

Notion’s search for an office took around a year to complete and involved touring more than 50 San Francisco properties, from SoMa to Jackson Square.&nbsp;

<p>Notion’s search for an office took around a year to complete and involved touring more than 50 San Francisco properties, from SoMa to Jackson Square.&nbsp;</p>

“Most of the tech office deals we had seen up until that point had been <a href="https://sfstandard.com/2025/03/06/strava-opens-hq-office-tower-abandoned-by-meta/">second-generation subleases</a>,” said Luke Ogelsby, a broker with CBRE who represented Notion. “Credit to them for having the vision to build something out and for taking the plunge.”

Meta abandoned this downtown office tower. A new tenant got a great deal

<p>“Most of the tech office deals we had seen up until that point had been <a href="https://sfstandard.com/2025/03/06/strava-opens-hq-office-tower-abandoned-by-meta/">second-generation subleases</a>,” said Luke Ogelsby, a broker with CBRE who represented Notion. “Credit to them for having the vision to build something out and for taking the plunge.”</p>

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The building’s last major tenant was Uber, which decamped to Mission Bay in 2019. Afterward, Brookfield — which purchased the building in 2014 for $80 million —&nbsp;<a href="https://sfstandard.com/2023/09/14/dawn-club-recalls-downtown-jazz-and-cocktails-speakeasy/">renovated and reopened the Dawn Club</a> on the ground floor, which initially opened in the early 1930s.

This new downtown San Francisco club recalls vintage jazz era

<p>The building’s last major tenant was Uber, which decamped to Mission Bay in 2019. Afterward, Brookfield — which purchased the building in 2014 for $80 million —&nbsp;<a href="https://sfstandard.com/2023/09/14/dawn-club-recalls-downtown-jazz-and-cocktails-speakeasy/">renovated and reopened the Dawn Club</a> on the ground floor, which initially opened in the early 1930s.</p>

When Notion CEO Ivan Zhao and Kothari toured the building, they were brought in through the jazz club, where a band was hired to play for them. “That was a special touch,” Kothari said.&nbsp;

<p>When Notion CEO Ivan Zhao and Kothari toured the building, they were brought in through the jazz club, where a band was hired to play for them. “That was a special touch,” Kothari said.&nbsp;</p>

A combination of <a href="https://sfstandard.com/2024/04/24/how-much-big-tech-pulled-back-in-san-francisco/">the tech industry’s pullback</a> and a <a href="https://sfstandard.com/2025/04/28/san-francisco-reset-attracts-owner-users/">wave of mortgage defaults and foreclosures</a> has left more than a third of the city’s 86 million square feet of office space vacant, according to first-quarter data from Cushman &amp; Wakefield. Slowly, the market is turning around as <a href="https://sfstandard.com/2025/05/30/greg-flynn-san-francisco-market-center-sale/">more properties trade hands at a discount</a> and a new crop of tech tenants <a href="https://sfstandard.com/2024/09/30/ai-gaming-company-finds-a-new-home-in-union-square/">graduate to bigger offices</a>.&nbsp;

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<p>A combination of <a href="https://sfstandard.com/2024/04/24/how-much-big-tech-pulled-back-in-san-francisco/">the tech industry’s pullback</a> and a <a href="https://sfstandard.com/2025/04/28/san-francisco-reset-attracts-owner-users/">wave of mortgage defaults and foreclosures</a> has left more than a third of the city’s 86 million square feet of office space vacant, according to first-quarter data from Cushman &amp; Wakefield. Slowly, the market is turning around as <a href="https://sfstandard.com/2025/05/30/greg-flynn-san-francisco-market-center-sale/">more properties trade hands at a discount</a> and a new crop of tech tenants <a href="https://sfstandard.com/2024/09/30/ai-gaming-company-finds-a-new-home-in-union-square/">graduate to bigger offices</a>.&nbsp;</p>

Kothari said there was never a doubt that Notion wanted to remain in San Francisco. Even though Market Street’s reputation has taken a hit since 2020, the search was more about finding the right building as opposed to fixating on a neighborhood, he said.

<p>Kothari said there was never a doubt that Notion wanted to remain in San Francisco. Even though Market Street’s reputation has taken a hit since 2020, the search was more about finding the right building as opposed to fixating on a neighborhood, he said.</p>

“We hope to build tools as timeless as this building,” Kothari said. “The fact that it’s reinventing itself at the same time as the rest of the city is something we’re really proud to participate in.”

<p>“We hope to build tools as timeless as this building,” Kothari said. “The fact that it’s reinventing itself at the same time as the rest of the city is something we’re really proud to participate in.”</p>

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The atrium of Notion's new headquarters in San Francisco on Thursday, June 5, 2025. The emerging AI giant has signed a 10-year direct deal for five floors of the century-old building.

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Uber’s downtown office sat empty for six years. A $10 billion company just moved in

Frank Zhou

Local real estate and restaurant magnate Greg Flynn is acquiring Market Center, a 770,000-square-foot office property at 555-575 Market St.&nbsp;

<p>Local real estate and restaurant magnate Greg Flynn is acquiring Market Center, a 770,000-square-foot office property at 555-575 Market St.&nbsp;</p>

The two skyscrapers, once known as the Standard Oil Buildings or Chevron Towers, will trade hands in a “deed in lieu of foreclosure,” in which Flynn will purchase what&#8217;s left of the existing $416 million loan on the property from lender ING.&nbsp;

<p>The two skyscrapers, once known as the Standard Oil Buildings or Chevron Towers, will trade hands in a “deed in lieu of foreclosure,” in which Flynn will purchase what's left of the existing $416 million loan on the property from lender ING.&nbsp;</p>

<p>The two skyscrapers, once known as the Standard Oil Buildings or Chevron Towers, will trade hands in a “deed in lieu of foreclosure,” in which Flynn will purchase what&#8217;s left of the existing $416 million loan on the property from lender ING.&nbsp;</p>

Sources say Flynn&#8217;s group is paying around $177 million, or $238 per square foot, for the buildings, the highest sale price for a San Francisco office property since 2022, when DivcoWest purchased 550 Terry A. Francois Blvd. (now the offices of OpenAI) from Gap.

<p>Sources say Flynn's group is paying around $177 million, or $238 per square foot, for the buildings, the highest sale price for a San Francisco office property since 2022, when DivcoWest purchased 550 Terry A. Francois Blvd. (now the offices of OpenAI) from Gap.</p>

<p>Sources say Flynn&#8217;s group is paying around $177 million, or $238 per square foot, for the buildings, the highest sale price for a San Francisco office property since 2022, when DivcoWest purchased 550 Terry A. Francois Blvd. (now the offices of OpenAI) from Gap.</p>

555 Market Street is reflected in the windows of 575 Market Street in San Francisco on Monday, Mar. 4, 2024. The Paramount Group, a major office landlord in San Francisco, may give up two of its trophy properties at 555 Market Street and 575 Market Street.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/03/paramountgroupproblems-04.jpg?w=1620" alt="building from ground level" class="wp-image-255324"/><figcaption class="wp-element-caption">The sister buildings at 555 and 575 Market were once the headquarters of oil and gas giant Chevron Corp.</figcaption></figure>


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555 market street, market street, real estate
555 Market Street in San Francisco on Wednesday, May 28, 2025.


<figure class="wp-block-image size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2025/05/0l8a4744.jpg?w=2500" alt="Three people in coats walk past a building with a glass facade, reflecting windows and trees. The building number &quot;555&quot; is visible on a column." class="wp-image-404518"/><figcaption class="wp-element-caption">The lobbies are visible from Market Street.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/0l8a4744.jpg?w=2500" alt="Three people in coats walk past a building with a glass facade, reflecting windows and trees. The building number &quot;555&quot; is visible on a column." class="wp-image-404518"/><figcaption class="wp-element-caption">The lobbies are visible from Market Street.</figcaption></figure>

Market Center was last sold to New York-based Paramount Group in 2019 for $722 million. Flynn and his primary investment partner on the deal, DRA Advisors, got a 76% discount on the last purchase price. &nbsp;

<p>Market Center was last sold to New York-based Paramount Group in 2019 for $722 million. Flynn and his primary investment partner on the deal, DRA Advisors, got a 76% discount on the last purchase price. &nbsp;</p>

Paramount Group stopped making loan payments last August, citing insufficient “property cash flows,” and defaulted on the mortgage in January. Market Center was less than half leased at the time, according to Paramount’s latest 8-K portfolio summary.&nbsp;The real estate investor made a series of bold bets at the peak of San Francisco&#8217;s office market that <a href="https://sfstandard.com/2025/03/05/paramount-group-san-francisco-big-debts-come-due/">failed to pay off</a>.

A huge real estate investor declared another SF building worthless. That may be good news

<p>Paramount Group stopped making loan payments last August, citing insufficient “property cash flows,” and defaulted on the mortgage in January. Market Center was less than half leased at the time, according to Paramount’s latest 8-K portfolio summary.&nbsp;The real estate investor made a series of bold bets at the peak of San Francisco's office market that <a href="https://sfstandard.com/2025/03/05/paramount-group-san-francisco-big-debts-come-due/">failed to pay off</a>.</p>

<p>Paramount Group stopped making loan payments last August, citing insufficient “property cash flows,” and defaulted on the mortgage in January. Market Center was less than half leased at the time, according to Paramount’s latest 8-K portfolio summary.&nbsp;The real estate investor made a series of bold bets at the peak of San Francisco&#8217;s office market that <a href="https://sfstandard.com/2025/03/05/paramount-group-san-francisco-big-debts-come-due/">failed to pay off</a>.</p>

One of the major tenants at Market Center is Waymo, which leases 78,000 square feet at 555 Market St.&nbsp;Other tenants include Mindspace, Bank of Communications, Crowe LLP, and Mayer Brown.

<p>One of the major tenants at Market Center is Waymo, which leases 78,000 square feet at 555 Market St.&nbsp;Other tenants include Mindspace, Bank of Communications, Crowe LLP, and Mayer Brown.</p>

“We’re going to bring a level of hospitality to the office market never before seen in San Francisco,” Flynn told The Standard.

<p>“We’re going to bring a level of hospitality to the office market never before seen in San Francisco,” Flynn told The Standard.</p>

His group plans to transform unused meeting space on the ground floor of 555 Market St. into an activity center called The Break Room, featuring a giant electronic video display, basketball court, rock climbing wall, and outdoor sports bar, all visible from Market Street.

<p>His group plans to transform unused meeting space on the ground floor of 555 Market St. into an activity center called The Break Room, featuring a giant electronic video display, basketball court, rock climbing wall, and outdoor sports bar, all visible from Market Street.</p>

Above that, an open floor previously used by Uber for its global training center will be replaced by two or three pickleball courts and meeting space. These amenities will be primarily for office tenants but could be opened up to the paying public on weekends, Flynn said.&nbsp;

<p>Above that, an open floor previously used by Uber for its global training center will be replaced by two or three pickleball courts and meeting space. These amenities will be primarily for office tenants but could be opened up to the paying public on weekends, Flynn said.&nbsp;</p>

Billionaire and real estate mogul Greg Flynn at Market Center in San Francisco, CA on Thursday, May 29th, 2025. Prewrite for Greg Flynn closing in on Market Center, which is anticipated to be the largest office transaction since pre-pandemic.


<figure class="wp-block-image alignwide size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2025/05/9207416691_gregflynn-0779.jpg?w=2500" alt="A person in a blue suit stands in an empty, dimly lit room with exposed ceiling panels. Light filters in from windows on the left, casting shadows." class="wp-image-405229"/><figcaption class="wp-element-caption">A floor that used to be Uber&#8217;s global training center will be transformed into pickleball courts.</figcaption></figure>


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/9207416691_gregflynn-0779.jpg?w=2500" alt="A person in a blue suit stands in an empty, dimly lit room with exposed ceiling panels. Light filters in from windows on the left, casting shadows." class="wp-image-405229"/><figcaption class="wp-element-caption">A floor that used to be Uber's global training center will be transformed into pickleball courts.</figcaption></figure>

<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/9207416691_gregflynn-0779.jpg?w=2500" alt="A person in a blue suit stands in an empty, dimly lit room with exposed ceiling panels. Light filters in from windows on the left, casting shadows." class="wp-image-405229"/><figcaption class="wp-element-caption">A floor that used to be Uber&#8217;s global training center will be transformed into pickleball courts.</figcaption></figure>

<div class="wp-block-column" style="flex-basis:50%"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/9207416691_gregflynn-0852.jpg?w=2500" alt="The image shows a modern building with large windows next to a tree-lined city street. In the foreground, there is a round water fountain." class="wp-image-405263"/><figcaption class="wp-element-caption">The high ceilings make the ground floors amenable to transformation.</figcaption></figure></div>

<div class="wp-block-column" style="flex-basis:50%"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/0l8a4798.jpg?w=2500" alt="The image shows a modern building entrance with large windows and a black circular structure displaying the number 555, flanked by glass railings." class="wp-image-404519"/><figcaption class="wp-element-caption">The activity center will be called The Break Room. </figcaption></figure></div>

<div class="wp-block-columns"><div class="wp-block-column" style="flex-basis:50%"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/9207416691_gregflynn-0852.jpg?w=2500" alt="The image shows a modern building with large windows next to a tree-lined city street. In the foreground, there is a round water fountain." class="wp-image-405263"/><figcaption class="wp-element-caption">The high ceilings make the ground floors amenable to transformation.</figcaption></figure></div><div class="wp-block-column" style="flex-basis:50%"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/0l8a4798.jpg?w=2500" alt="The image shows a modern building entrance with large windows and a black circular structure displaying the number 555, flanked by glass railings." class="wp-image-404519"/><figcaption class="wp-element-caption">The activity center will be called The Break Room. </figcaption></figure></div></div>

<div class="wp-block-group alignwide"><div class="wp-block-columns"><div class="wp-block-column" style="flex-basis:50%"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/9207416691_gregflynn-0852.jpg?w=2500" alt="The image shows a modern building with large windows next to a tree-lined city street. In the foreground, there is a round water fountain." class="wp-image-405263"/><figcaption class="wp-element-caption">The high ceilings make the ground floors amenable to transformation.</figcaption></figure></div><div class="wp-block-column" style="flex-basis:50%"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/0l8a4798.jpg?w=2500" alt="The image shows a modern building entrance with large windows and a black circular structure displaying the number 555, flanked by glass railings." class="wp-image-404519"/><figcaption class="wp-element-caption">The activity center will be called The Break Room. </figcaption></figure></div></div></div>

The Bay Area native&#8217;s wealth comes from his dual real estate businesses. Flynn Group is the largest franchise operator in the world, managing more than 2,900 locations of Applebee&#8217;s, Panera, Pizza Hut, and other brands. Flynn Properties oversees hundreds of select-service hotel brands, six luxury resorts, and multiple office buildings.&nbsp;

<p>The Bay Area native's wealth comes from his dual real estate businesses. Flynn Group is the largest franchise operator in the world, managing more than 2,900 locations of Applebee's, Panera, Pizza Hut, and other brands. Flynn Properties oversees hundreds of select-service hotel brands, six luxury resorts, and multiple office buildings.&nbsp;</p>

<p>The Bay Area native&#8217;s wealth comes from his dual real estate businesses. Flynn Group is the largest franchise operator in the world, managing more than 2,900 locations of Applebee&#8217;s, Panera, Pizza Hut, and other brands. Flynn Properties oversees hundreds of select-service hotel brands, six luxury resorts, and multiple office buildings.&nbsp;</p>

Flynn <a href="https://sfstandard.com/2024/07/09/san-francisco-recovery-depends-on-its-hotels/">purchased the historic Huntington Hotel</a> in 2023 and <a href="https://sfstandard.com/2024/08/26/navigating-the-bottom-of-san-franciscos-office-market/">a Class B office building at 631 Howard St.</a> last year. Both properties are undergoing renovations.&nbsp;

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<p>Flynn <a href="https://sfstandard.com/2024/07/09/san-francisco-recovery-depends-on-its-hotels/">purchased the historic Huntington Hotel</a> in 2023 and <a href="https://sfstandard.com/2024/08/26/navigating-the-bottom-of-san-franciscos-office-market/">a Class B office building at 631 Howard St.</a> last year. Both properties are undergoing renovations.&nbsp;</p>

Coincidentally, Market Center will be the third office building built by Standard Oil to be purchased by Flynn. His company previously owned and sold office towers at 115 Sansome St. and 225 Bush St.

<p>Coincidentally, Market Center will be the third office building built by Standard Oil to be purchased by Flynn. His company previously owned and sold office towers at 115 Sansome St. and 225 Bush St.</p>

Since Flynn Properties is taking over Market Center at a lower cost basis than Paramount, his group intends to compete in the city’s crowded office market by offering “generous” improvement allowances, covering the cost of upgrades and renovations for new tenants.&nbsp;

<p>Since Flynn Properties is taking over Market Center at a lower cost basis than Paramount, his group intends to compete in the city’s crowded office market by offering “generous” improvement allowances, covering the cost of upgrades and renovations for new tenants.&nbsp;</p>

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Moreover, the available office suites average 13,000 square feet, a size that <a href="https://sfstandard.com/2024/09/08/san-franciscos-hottest-office-market-heats-up/">aligns with tenant demand</a> for new offices. “The great thing about this is that those tenants can stay on the property and grow with us as well,” Flynn said.&nbsp;

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<p>Moreover, the available office suites average 13,000 square feet, a size that <a href="https://sfstandard.com/2024/09/08/san-franciscos-hottest-office-market-heats-up/">aligns with tenant demand</a> for new offices. “The great thing about this is that those tenants can stay on the property and grow with us as well,” Flynn said.&nbsp;</p>

This is not the first time the sale of Market Center has marked a turning point in the real estate market. After Chevron decamped and left the property<strong> </strong>more than 80% empty, the skyscrapers were purchased for a mere $79.5 million by DivcoWest and RREEF Property Trust in 2001.&nbsp;

<p>This is not the first time the sale of Market Center has marked a turning point in the real estate market. After Chevron decamped and left the property<strong> </strong>more than 80% empty, the skyscrapers were purchased for a mere $79.5 million by DivcoWest and RREEF Property Trust in 2001.&nbsp;</p>

Eventually, as leasing and economic conditions improved, the property appreciated with each sale, from $267 million in 2010 to $510 million in 2016 to $722 million in 2019.&nbsp;

<p>Eventually, as leasing and economic conditions improved, the property appreciated with each sale, from $267 million in 2010 to $510 million in 2016 to $722 million in 2019.&nbsp;</p>


<figure class="wp-block-image size-large"><img height="2500" width="1667" src="https://content.sfstandard.com/wp-content/uploads/2025/05/9207416691_gregflynn-0812.jpg?w=1667" alt="A man in a blue suit stands on a shiny marble floor in a modern building with large windows, letting in natural light. A unique ceiling light fixture is visible." class="wp-image-405231"/><figcaption class="wp-element-caption">Coincidentally, this will be the third office building constructed by Standard Oil that Flynn has purchased.</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/9207416691_gregflynn-0812.jpg?w=1667" alt="A man in a blue suit stands on a shiny marble floor in a modern building with large windows, letting in natural light. A unique ceiling light fixture is visible." class="wp-image-405231"/><figcaption class="wp-element-caption">Coincidentally, this will be the third office building constructed by Standard Oil that Flynn has purchased.</figcaption></figure>

Flynn said this was his first time working with real estate investment firm DRA Advisors, which is based in New York. The property was marketed for sale by Eastdil Secured in January.

<p>Flynn said this was his first time working with real estate investment firm DRA Advisors, which is based in New York. The property was marketed for sale by Eastdil Secured in January.</p>

Out-of-state investors like DRA have been slow to return to San Francisco&#8217;s office market since the pandemic. In order to finance his purchases of the Huntington Hotel and 631 Howard, Flynn turned to high net-worth individuals with local ties, <a href="https://sfstandard.com/2024/09/19/pelosis-take-part-in-sf-real-estate-reset/">such as Nancy and Paul Pelosi</a>, who were willing to bet on the city during uncertain times.

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<p>Out-of-state investors like DRA have been slow to return to San Francisco's office market since the pandemic. In order to finance his purchases of the Huntington Hotel and 631 Howard, Flynn turned to high net-worth individuals with local ties, <a href="https://sfstandard.com/2024/09/19/pelosis-take-part-in-sf-real-estate-reset/">such as Nancy and Paul Pelosi</a>, who were willing to bet on the city during uncertain times.</p>

<p>Out-of-state investors like DRA have been slow to return to San Francisco&#8217;s office market since the pandemic. In order to finance his purchases of the Huntington Hotel and 631 Howard, Flynn turned to high net-worth individuals with local ties, <a href="https://sfstandard.com/2024/09/19/pelosis-take-part-in-sf-real-estate-reset/">such as Nancy and Paul Pelosi</a>, who were willing to bet on the city during uncertain times.</p>

&#8220;No one wanted to step up before six months ago,&#8221; Flynn said. &#8220;Now the city and the market are in a much better place.&#8221;

<p>"No one wanted to step up before six months ago," Flynn said. "Now the city and the market are in a much better place." </p>

<p>&#8220;No one wanted to step up before six months ago,&#8221; Flynn said. &#8220;Now the city and the market are in a much better place.&#8221; </p>

Ezra Wallach

Tucked into the lobby of the Marina Theater, dozens of 20-somethings mingle as they would before a school dance, leeching on to whomever they happen to know and searching for common ground with those they don’t. They’re gathered for the inaugural “dropout graduation” organized by <a href="https://www.zfellows.com/#about">Z Fellows</a>, a weeklong boot camp for tech entrepreneurs.&nbsp;

<p>Tucked into the lobby of the Marina Theater, dozens of 20-somethings mingle as they would before a school dance, leeching on to whomever they happen to know and searching for common ground with those they don’t. They’re gathered for the inaugural “dropout graduation” organized by <a href="https://www.zfellows.com/#about">Z Fellows</a>, a weeklong boot camp for tech entrepreneurs.&nbsp;</p>

Soon, the Zoomers trickle upstairs into the theater, where commencement speakers impart wisdom that the assembly of ambitious quitters can fall back on throughout their professional lives.

<p>Soon, the Zoomers trickle upstairs into the theater, where commencement speakers impart wisdom that the assembly of ambitious quitters can fall back on throughout their professional lives.</p>

“Our natural instinct as children is to question everything: authority, tradition, the status quo,” Z Fellows Founder Cory Levy, a dropout himself, said. “But somehow, when it comes to college, we stop questioning it. This is a room full of exceptions.”

<p>“Our natural instinct as children is to question everything: authority, tradition, the status quo,” Z Fellows Founder Cory Levy, a dropout himself, said. “But somehow, when it comes to college, we stop questioning it. This is a room full of exceptions.”</p>

Dozens of college dropouts from different nationalities who left school to pursue careers in tech gathered at the Marina Theater for a graduation ceremony they never had, in San Francisco, on Saturday, May 10, 2025. A graduation ceremony was organized by young people in the startup community for those who dropped out of university before obtaining a degree to pursue careers in the technology industry.


<figure class="wp-block-image alignwide size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2025/05/9060026595_collegedropout_0033.jpg?w=2500" alt="A dim theater filled with people sitting in rows of red seats, some chatting and others looking around. The atmosphere is lively and informal." class="wp-image-398147"/><figcaption class="wp-element-caption">While some in attendance wore gowns, most wore button-downs, sweaters, or casual dresses.</figcaption></figure>


<figure class="wp-block-image alignwide size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/05/9060026595_collegedropout_0033.jpg?w=2500" alt="A dim theater filled with people sitting in rows of red seats, some chatting and others looking around. The atmosphere is lively and informal." class="wp-image-398147"/><figcaption class="wp-element-caption">While some in attendance wore gowns, most wore button-downs, sweaters, or casual dresses.</figcaption></figure>

Around the country, the importance of college is being questioned. But perhaps nowhere more than in San Francisco, where many tech companies <a href="https://sfstandard.com/2025/02/13/founders-dropouts-ycombinator-aiboom-startups/">simply don’t care</a> if you have a college degree. Meanwhile, college graduates <a href="https://www.cnn.com/2025/01/26/economy/job-market-recent-grads-colleges/index.html">struggle</a> to field job offers; bosses say those who do make it into the office — remote or otherwise — are <a href="https://fortune.com/article/why-are-companies-firing-gen-z-employees-workplace-bosses-workers-jobs/">often unprofessional</a>; and AI is getting better at tasks previously reserved for <a href="https://www.cbsnews.com/news/chatgpt-artificial-intelligence-chatbot-jobs-most-likely-to-be-replaced/">white-collar workers</a>.

‘It’s normal in this city to be a dropout’: AI founders are starting younger than ever

<p>Around the country, the importance of college is being questioned. But perhaps nowhere more than in San Francisco, where many tech companies <a href="https://sfstandard.com/2025/02/13/founders-dropouts-ycombinator-aiboom-startups/">simply don’t care</a> if you have a college degree. Meanwhile, college graduates <a href="https://www.cnn.com/2025/01/26/economy/job-market-recent-grads-colleges/index.html">struggle</a> to field job offers; bosses say those who do make it into the office — remote or otherwise — are <a href="https://fortune.com/article/why-are-companies-firing-gen-z-employees-workplace-bosses-workers-jobs/">often unprofessional</a>; and AI is getting better at tasks previously reserved for <a href="https://www.cbsnews.com/news/chatgpt-artificial-intelligence-chatbot-jobs-most-likely-to-be-replaced/">white-collar workers</a>.</p>

Haz Hubble, one of the Z Fellows “graduates,” dropped out sooner than most, quitting high school as a freshman.&nbsp;

<p>Haz Hubble, one of the Z Fellows “graduates,” dropped out sooner than most, quitting high school as a freshman.&nbsp;</p>

“Honestly, fuck school,” the 26-year-old founder of <a href="https://www.pally.com/">Pally</a> said. “If you’re smart and high-agency, you don’t need to go to school.”

<p>“Honestly, fuck school,” the 26-year-old founder of <a href="https://www.pally.com/">Pally</a> said. “If you’re smart and high-agency, you don’t need to go to school.”</p>

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New development could lead to sale of struggling downtown San Francisco mall

Uber’s downtown office sat empty for six years. A $10 billion company just moved in

SF billionaire buys downtown skyscrapers for $177M, will add pickleball courts, rock wall

‘F*** school’: College quitters celebrate startup dreams at ‘dropout graduation’

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