A joint venture led by Deutsche Finance America and SHVO has completed the acquisition of the Transamerica Pyramid Center in San Francisco for $650 million.
The sale represents the United States’ largest commercial real estate transaction to occur amidst the COVID-19 pandemic, said SHVO in a statement. It is the first time that the building has sold.
The joint venture purchased the 48-storey tower and complex from Aegon NV, the Dutch insurance company that assumed ownership of 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. Aegon will continue to retain the naming rights for the Transamerica building.
SHVO and Deutsche Finance America acquired the properties together with a group of European investors anchored by Bayerische Versorgungskammer (BVK), Germany´s largest pension scheme group under public law, represented by Universal-Investment-Luxembourg S.A. as AIFM”.
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 the famed firm William L. Pereira & Associates, which helped define California’s distinctive modernism in the second half of the 20th century. It is currently the third largest pyramid on the planet.
The complex covers an entire city block and includes three buildings totaling approximately 750,000 square feet – the iconic pyramid-shaped tower, the office building at 505 Sansome Street, and a site set for approximately 100,000 square feet of office redevelopment at 545 Sansome Street. Anchoring all three buildings is the Transamerica Redwood Park, an urban oasis featuring a grove of mature redwood trees shading public open space.
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.
“We’re proud to become the stewards of the Transamerica Pyramid and its brand – 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.”
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.”