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Zynga Inc. has signed an agreement to buy its big corporate headquarters in San Francisco for $228 million, according to a regulatory filing.
The 670,000-square-foot building and the land it occupies, which went up for sale in January, had been expected to bring in between $350 a square foot and $400 a square foot, or $234 million to $268 million. Zynga, however, is also paying other fees associated with the sale, notably the transfer taxes on the property, which in San Francisco’s are 2.5 percent and will come to $5.7 million.
Zynga currently leases approximately 65 percent of the space in the building, with the remaining space leased by third party tenants or vacant. The company has more than 2,000 employees there, and its lease, signed in late 2010, runs through 2018.
The building is owned by TMG Partners and Farallon Capital Management, which bought the property in 2007 for $116.9 million, or $174 per square foot, according to city records.
The San Francisco-based owners and others, including tenants, have subsequently invested another $85 million in the property, or $125 a square foot. The seller is listed as 650 Townsend Associates LLC. The building today features a 60-foot atrium, private theater, fitness center, and a dining facility that cranks out gourmet fare 18 hours a day.
For the entire article go to the SF Business Times.