Flynn Properties Acquired Historic 225 Bush Street
The firm purchased the 585,450-square-foot Financial District office tower for $221 million.
Updated on Sept. 25, 2026 in Commercial
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The Financial District landmark at 225 Bush Street has a new owner after a deed-in-lieu of foreclosure transaction. Flynn Properties, a firm that previously held the tower, took over the property following a default on a $350 million loan by the previous owner, Kylli.
Why it matters
The deal signals continued shifts in downtown office real estate as owners navigate debt maturity and occupancy challenges. Whether the building's planned renovations can boost its 55 percent occupancy rate remains the key question for the local market.
Flynn Properties secured the 22-story tower for approximately $377 per square foot. The building currently sits at 55 percent occupancy following the previous owner's loan default.
The players
Flynn Properties
A real estate investment firm that has now reclaimed ownership of the 225 Bush Street office tower.
Kylli
The previous owner of the 225 Bush Street property that defaulted on its loan in November 2024.
The details
Flynn Properties reacquired the building, which originally served as the Standard Oil Company headquarters, by purchasing the $350 million debt for $221 million. The firm plans to modernize the 1922-built property by adding a new fitness center, a speakeasy, and refreshed common areas. The office space remains in the hands of the new ownership group as they look to fill the remaining vacancy.
Timeline
1922: The office building at 225 Bush Street was constructed.
2000: Flynn Properties first took ownership of the building.
November 2024: The previous owner defaulted on the building loan.
September 24, 2026: The deed-in-lieu transaction closed.
Across the Bay
This transaction follows the established citywide pattern of office buildings changing hands via loan distress as commercial properties adjust to new market valuations. It is a specific example of the broader, ongoing reset in the Financial District following the 2020 downtown office recovery trend.
Residents and workers in the Financial District can expect to see renovations at the 225 Bush Street lobby and common areas soon. The building's transition marks a new chapter for one of the neighborhood's most visible historic towers.
The takeaway
The acquisition highlights the ongoing price corrections for aging office stock in the city center. Watch for future permit filings or project announcements regarding the lobby and amenity renovations promised by the new ownership.
Further reading
Find more updates on the state of downtown real estate on our Commercial page.
Source note: This article includes information reported by The Real Deal New York.
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