Zynga Expects a Net Cash Benefit of $600 Million from HQ Deal

Zynga expects to receive a net cash benefit of approximately $600 million this year from the transaction, in which Zynga will lease back space within the building and remain headquartered in San Francisco.

Zynga’s headquarters at 699 8th St. in San Francisco fetched a whopping $600 million in a sale leaseback deal.

SAN FRANCISCO—Zynga Inc. has entered into sale and leaseback agreements with an affiliate of Boston-based investment firm Beacon Capital Partners LLC for its headquarters building located at 699 8th St. Zynga will lease back space within the building and remain headquartered in San Francisco.

Zynga expects to receive a net cash benefit of approximately $600 million this year, in one of the largest deals in the city’s history. In 2012, under Mark Pincus’ leadership, Zynga purchased the building for $234 million.