Zynga to Buy Its San Francisco Headquarters for $228 Million
The six-floor building, of which the social game maker currently occupies 65 percent, has 670,000 square feet.
NEW YORK - Social video game maker Zynga said in a regulatory filing late Monday that it has agreed to pay $228 million to buy its San Francisco headquarters.
The six-floor building located at 650 Townsend Street has 670,000 square-feet, and the company has deposited $25 million in escrow in connection with the pending transaction, Zynga said in its filing. It also said that costs related to taxes and brokerage fees will take the final price tag for the real estate deal beyond the $228 million mentioned.
The firm, known for such Facebook games as CityVille and FarmVille, is flush with cash after its IPO in December. It currently leases approximately 65 percent of the space in the building, with the remaining space being leased by third party tenants or vacant. According to the filing, Zynga plans to close the deal in the second quarter. It has about 1,700 employees in San Francisco.
The Wall Street Journal reported that the building houses a large Winnebago in the lobby, a basketball game machine and a candy room with buckets of snacks.
Zynga plans to build a collaborative community space in a second, unused lobby that is twice the size of the current lobby, it said.