SAN FRANCISCO—San Francisco’s iconic Transamerica Pyramid building, located in San Francisco’s financial district, has changed hands for the first time. On October 28, real estate private equity platform Deutsche Finance America and developer Michael Shvo partnered together to purchase the tower for a total of $650 million. This transaction is listed by Forbes as “the largest commercial transaction in the U.S.” since the start of the Covid-19 pandemic.
“It’s a classic building for all time that mirrors the forward-looking spirit of the Bay Area. We’re thrilled to bring this property into its next renaissance,” said developer Shvo in a public statement.
Aegon, a Dutch insurance firm, was the previous owner of the Transamerica Corportation. The building first opened in 1972, and Aegon bought it in 1999. Shvo and Deutsche purchased it from Aegon, making them the new owners. German pension Bayerische Versorgungskammer (BVK) is also another investor involved in the deal.
According to Bloomberg L.P., the tower had been on the market since August 2019, with an original winning bid set at $711 million. It is speculated that the pandemic is part of the reason why the closing process took so long, and is also what may have contributed to the $61 million price cut from the original price.
Although the building has changed hands, Deutsche and Shvo have stated that it will retain its trademark architectural shape and original Transamerica name, but there are plans to renovate parts of the property.
Business partners Deutsche and Shvo own nine other properties across the country which total several billion dollars.