SAN FRANCISCO – (Realty News Report) – The Transamerica Pyramid Center, San Francisco’s most recognizable office tower, has been sold for $650 million. This transaction marks the largest commercial real estate deal to close nationwide since the onset of the Covid-19 pandemic.
A joint venture led by SHVO together with Deutsche Finance America acquired the 48‑story landmark along with adjacent properties in the Financial District.
The seller, Transamerica, advised by its affiliate Aegon Asset Management, engaged JLL Capital Markets to handle the sale.
Completed in 1972, the Transamerica Pyramid remained the tallest office tower on the West Coast for decades until the completion of the 61‑story Salesforce Tower in San Francisco. Situated at 600 Montgomery Street, the Pyramid sits at the heart of the neighborhood often called the “Wall Street of the West” and serves as a symbolic gateway to San Francisco’s Financial District.
Designed by William L. Pereira & Associates, the building is a notable example of mid‑20th century California modernism and remains one of the largest pyramid structures in the world. Its distinctive form and skyline presence make it an enduring architectural icon for the city.
“We’re proud to take on ownership and management of the Transamerica Pyramid – the most famous and recognizable skyscraper on the West Coast, and one of the most memorable office towers in the world,” said Michael Shvo, Chairman and CEO of SHVO. “This iconic tower is an important addition to our portfolio of celebrated properties, enduring landmarks, and architectural gems. It’s a classic building for all time that mirrors the forward‑looking spirit of the Bay Area and of our own company. We’re thrilled to bring this property into its next renaissance.”
SHVO’s acquisition group includes a consortium of investors led by Bayerische Versorgungskammer (BVK), one of Germany’s largest pension funds, providing institutional capital alongside the primary buyers.
This transaction represents the first time the Transamerica Pyramid Center has been sold. The acquisition covers the Transamerica Pyramid Office Tower, a 48‑story office building totaling approximately 512,395 square feet at 600 Montgomery Street; 505 Sansome Street, a 20‑story office tower of about 191,142 square feet; and a corner parcel at 517 and 545 Washington Street. The corner parcel carries entitlement potential for a new nine‑story office building of approximately 106,807 square feet, offering future development or repositioning opportunities.
The JLL Capital Markets team representing Transamerica was led by Gerry Rohm, Michael Leggett, Robert Hielscher, Michael Seifer, David Dokko, and Erik Hanson. JLL also arranged $390 million in financing to support the transaction. Financing efforts were led by JLL’s Peter Smyslowski, Mike Tepedino, David Sitt, and Robert Tonnessen.
“Despite the pandemic, the investor pool for the offering was diverse, comprising both domestic and offshore investors who continue to be bullish on the long‑term strength and fundamentals of the San Francisco market,” said Michael Leggett of JLL. “The Transamerica Pyramid Tower, with its location, distinctive architecture and diverse tenant base, was and will continue to be a draw for tenants and investors worldwide.”
Jason Lucas, managing partner of Deutsche Finance America, added: “This marquee property in one of America’s most picturesque cities is a game‑changing next step in our already strong portfolio of exceptional investments.”
Oct. 31, 2020 — Realty News Report. Copyright 2020
Photos: Courtesy JLL and SHVO
File: Transamerica Pyramid Tower Sold