Michael Shvo, and his joint venture partner, Deutsche
Finance America, has acquired the Transamerica Pyramid Center in San Francisco
for $650 million.
In the biggest US deal since the outbreak of the
coronavirus, the JV purchased the 48-story tower and complex from Aegon NV, the
Dutch insurance company that assumed ownership the property in 1999 as part of
its purchase of Transamerica Corporation, the building’s namesake, which has
owned and operated the tower since its completion.
SHVO and Deutsche Finance America said they will ensure the
Transamerica Pyramid’s instantly recognizable profile and the Transamerica
Corporation’s logo will be maintained.
“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.”
The JV acquired the properties together with a group of
European investors anchored by Bayerische Versorgungskammer (BVK) Germany´s
largest pension scheme group.
The Transamerica Pyramid opened in 1972 at 600 Montgomery
Street, long known as the “Wall Street of the West” and the gateway to San
Francisco’s Financial District.
The tower was designed by William L. Pereira &
Associates and is currently the third largest pyramid on the planet.
The complex covers an entire city block and includes three
buildings totaling approximately 750,000 s/f – the iconic pyramid-shaped tower,
the office building at 505 Sansome Street, and a redevelopment site set for
approximately 100,000 s/f of office redevelopment at 545 Sansome Street.
Anchoring all three buildings is the Transamerica Redwood Park.
SHVO and Deutsche Finance America plan to execute a renovation project to provide first-class amenity and state-of-the-art spaces throughout both the Transamerica Pyramid and 505 Sansome.
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. This is yet another example of SHVO and Deutsche Finance Group
seeking out the best and highest quality prime assets to add to our thriving
national portfolio.”
Since re-emerging from the 2008 financial collapse that
claimed his former marketing company and settling a tax evasion lawsuit, Shvo
has been amassing a collection of American landmarks.
Together with Deutsche Finance America – the US real estate
private equity platform of the Munich-based Deutsche Finance Group – his firm
has invested in nine iconic properties in prime locations over the last two
years.
The group recently acquired the “Big Red” tower at 333 South
Wabash in Chicago, as well as two office buildings in Manhattan, the former
Coca-Cola Building at 711 Fifth Avenue and 530 Broadway in SoHo.
SHVO and Deutsche Finance Americas also purchased the
historic Raleigh, Richmond, and South Seas Hotels in Miami Beach, in addition
to a new venture that will see properties at 9200 Wilshire in Beverly Hills and
685 Fifth Avenue in Manhattan sold as luxury Mandarin Oriental residences.
