The Transamerica Pyramid, a prominent feature of San Francisco’s skyline, is reportedly being sold for the second time in six years. The sale involves developer Michael Shvo and German pension fund Bayerische Versorgungskammer (BVK), who have reached a reported agreement to sell the 48-story tower to Cyprus-based investment firm Yoda plc. The sale price has not been disclosed and the deal has not yet closed, according to SFist.
The transaction is significant due to the building’s status as an iconic structure and its recent history of ownership changes. The potential sale comes amid reports of a strained relationship between Shvo and BVK, as well as broader challenges in the real estate sector.
Shvo and his investors purchased the Transamerica building in 2020 for a reported $650 million, marking its first change of ownership since it was built in 1972. They also acquired adjacent properties at 505 Sansome and 545 Sansome, naming them Two Transamerica Plaza and Three Transamerica Plaza. The ground floor of Three Transamerica Plaza houses new restaurants Cafe Sebastian and Ame.
SFist reports that all three buildings are presumed to be part of a package deal in this latest transaction. There have been rumors about difficulties between Shvo and BVK, who have collaborated on other projects. BVK had previously sought a new asset manager for its U.S. real estate portfolio, leading to sales of other properties managed by Shvo.
BVK has invested approximately $1.9 billion in U.S. real estate and is reportedly facing around $1 billion in possible losses due to sector weaknesses. Despite these challenges, leasing activity at the Transamerica building appeared strong over recent years; Shvo claimed it was 80% leased by late 2022 following a $400 million renovation effort.
Recently, an unnamed tenant signed what was described as the city’s most expensive office lease at $300 per square foot for space on the tower’s 44th floor. Other tenants include Coatue and Mizuho Bank with large leases on upper floors. However, there has also been an ongoing legal dispute between Shvo’s company and private club CORE regarding racketeering allegations; CORE sought $250 million in damages but the current status of that suit remains unclear.
