The Transamerica Pyramid, San Francisco’s second-tallest building, has sold for $650 million, eight months after an sales agreement was reached.
New York investor Michael Shvo, Deutsche Finance America and other investors bought the building from Aegon, owner of namesake insurance company Transamerica Corp. The price was initially over $700 million but the deal was delayed amid the coronavirus pandemic, which heavily disrupted the real estate market and sent most office workers home.
The new owners, which include Germany’s biggest pension fund, Bayerische Versorgungskamme, plan to renovate the 1972 building to attract modern tenants. The property had never been previously sold.
The deal also includes two nearby buildings, at 505 Sansome St. and 545 Sansome St., which is a potential development site. The three buildings total around 760,000 square feet.
“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 said in a statement.
The pandemic has led to a plunge in both office leasing activity and commercial real estate sales. San Francisco properties worth $2.5 million or more sold for a combined $2 billion between January and September, according to Real Capital Analytics, a real estate data firm. That’s far less than in the first three quarters of 2019, when properties worth $2.5 million or more sold for a combined $8 billion.
Another major deal, the sale of the Oceanwide Center, has also been delayed and has yet to close.
Shvo and Deutsche Finance have bought nine U.S. buildings in the last two years, including the Big Red tower in Chicago and the former Coca-Cola Building in New York.
Roland Li is a San Francisco Chronicle staff writer. Email: roland.li@sfchronicle.com
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October 29, 2020 at 06:25AM
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Transamerica Pyramid sold for $650 million after delays - San Francisco Chronicle
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