By Jon Peterson
Major office building capital sources will now be able to make an offer for a 45 percent interest in the Transamerica Pyramid Center, a two-building property that occupies a full city block in San Francisco. The sale was confirmed to The Registry by multiple sources that are familiar with the details of the offering.
The property is now owned by Transamerica Corp. and its parent company, Dutch insurance and financial services conglomerate Aegon, headquartered in The Hague. The listing agent on the sale is the San Francisco office of HFF. This company declined to comment when contacted for this story.
There is no indication at this time what the potential pricing on the asset will be. The property has an address of 605 Montgomery Street, which is the San Francisco landmark iconic Pyramid building, and the adjacent 505 Sansome Street building. Together they amount to around 785,000 square feet.
Both buildings are LEED Platinum certified, the highest certification in environmental sustainability offered by U.S. Green Building Council. According to the buildings’ web site, the 505 Sansome building is a 20-story, 185,000 square foot office building that was built in 1981. The asset offers access to Redwood Park, views of San Francisco’s skyline from the upper floors and rare, open air balconies. The building was designed by famed architect of the Transamerica Pyramid, William Pereira.
The Transamerica Pyramid is a 48-story building that was built in 1972. It offers around 500,000 square feet of office space and is one of the most recognizable business addresses in San Francisco.
The interest in this asset should be very strong, according to industry sources. It is rare for office buildings of this size that come up for sale, even if it is only for a partial interest. The San Francisco office market remains a top market for investment by many major institutional investors in both the United States and around the world.
Both buildings have some availability. According to the properties’ leasing web site, the Pyramid building has around 31,000 square feet available, which makes the building around 94 percent occupied. The 505 Sansome building has just under 19,000 square feet available, which makes the property around 90 percent occupied.
According to industry reports by JLL and Loopnet, the asking rent in the Pyramid building is at $66, while the asking rent at 505 Sansome is between $63 and $65.
The leasing efforts for both buildings are led by the San Francisco office of Cushman & Wakefield. The brokers that are in charge of the leasing activities are Ross Robinson, managing director, and Danny Pickard, associate director.