New York & Foreign Capital Investors to Spend ~$700MM on Transamerica Building in San Francisco

Transamerica Pyramid Center, San Francisco, Transamerica Corp, Aegon, U.S. Green Building Council, Redwood Park, JLL, Loopnet, Cushman & Wakefield

By Jon Peterson

New York City-based development and investment firm SHVO, led by its founder Michael Shvo, and German pension fund Bayerische Versorgungskammer, or BVK, and Deutsche Finance have been selected as the buyers of the Transamerica Pyramid and two other neighboring buildings in San Francisco. The sales price is projected to be about $700 million, according to multiple sources that track the sale of major office buildings in San Francisco.

The seller of the assets is Transamerica Corporation and its parent, Dutch insurance company Aegon. The listing agent on the sale is the San Francisco office of JLL. This firm declined to comment when contacted for this story.

This was the second time that the sellers have put up at least a partial interest in the sale of the Transamerica building in as many years. The first time an offering was made was in January 2018 when a 45 percent interest in the property was placed on the market for sale. HFF, which was acquired by JLL last year, was the listing agent on the partial sale at the time. A deal on the partial sale was never completed.

The three properties that are part of the sale this time include the Transamerica Tower located at 600 Montgomery Street and two adjacent buildings located at 505 and 545 Sansome. Should this sale go through, it would represent the first time that the Transamerica Tower has been sold since it was developed in 1972.

The full sales of the properties were placed on the market for sale last fall. The anticipated price point at that time was somewhere in the range of $625 million to $650 million, according to sources familiar with the office building sales market in San Francisco.

SHVO declined to comment when contacted for this story. The company is known as an investor in high-end assets for both offices and residential assets.

West Coast Commercial Real Estate News