SAN FRANCISCO – (Realty News Report)– Transamerica Pyramid Center, San Francisco’s most recognizable office tower, has been sold for $650 million, representing the nation’s largest commercial real estate deal to close since the Covid hit.
A joint venture led by SHVO and Deutsche Finance America acquired the 48-story tower and adjacent buildings.
The seller, Transamerica (as advised by its affiliate, Aegon Asset Management), was represented by JLL Capital Markets.
Since it was completed in 1972, Transamerica Tower had been the tallest office tower on the West Coast, until Hines built the 61-story Salesforce Tower in San Francisco a couple of years ago.
The Transamerica Pyramid, 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, 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.
“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 buying group also includes a consortium of investors led by Bayerische Versorgungskammer (BVK), one of Germany’s leading pension funds.
Transamerica Pyramid Center has never been sold before. The deal consisted of the Transamerica Pyramid Office Tower, a 48-story, 512,395-SF tower at 600 Montgomery Street; the 505 Sansome Street, a 20-story, 191,142-SF office tower; and a corner parcel at 517 and 545 Washington Street, which will allow for the development of a nine-story, 106,807-SF office building.
The JLL Capital Markets team representing the seller was led by Gerry Rohm, Michael Leggett, Robert Hielscher and Michael Seifer, David Dokko and Erik Hanson.
JLL arranged $390 million financing for the transaction. Financing efforts for the sale of the complex 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 JLL’s Leggett. “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