San Francisco’s Iconic Transamerica Pyramid Building Being Sold for $700 Million

San Francisco’s Iconic Transamerica Pyramid Building Being Sold for $700 Million

Property’s First Sale Would Be City’s Second-Biggest Office Deal on Record

The Transamerica Pyramid building has been a mainstay of the San Francisco skyline since its 1972 opening. (CoStar)

San Francisco’s iconic Transamerica Pyramid building is being acquired by New York-based developer Michael Shvo for more than $700 million, a near-record price for one of the most expensive office markets in the country.

A spokesman for Shvo told CoStar News a Shvo-led partnership with Deutsche Finance and German pension fund Bayerische Versorgungskhammer agreed to buy the building at 600 Montgomery St., in the city’s core financial district, for a figure “north of $700 million.”

This is the first time the Transamerica building has been sold since it was completed in 1972 by the insurance company, a business that is now owned by parent company Aegon. Officials at Aegon did not immediately respond to requests for comment.

Spanning more than 500,000 square feet across 48 stories, the building remains among the most notable structures along the San Francisco skyline, within the city’s financial district that is home to operations of several major global companies. The Transamerica tower, at 853 feet, is now the second-tallest structure in San Francisco after Salesforce Tower.

According to CoStar data going back three decades, a sale price of $700 million would rank as the second-highest confirmed deal total for a single office property in San Francisco. The largest on record is the $864.5 million sale of the building at 101 California St., purchased in December 2012 by GIC Real Estate from Hines.

In an email, the spokesman said Shvo, who heads Shvo Concepts, “is focused on iconic properties and conserving their heritage while transforming their relevance in today’s world.”

During the past year, Shvo and the partnership have acquired eight properties totaling about $3.1 billion, including the iconic Coca-Coca building at 711 Fifth Ave. in New York City.