A consortium, led by Deutsche Finance America and New York City-based property developer Michael Shvo, has confirmed the $650m (€547m) acquisition of San Francisco’s iconic Transamerica Pyramid office tower.
In February, IPE Real Assets reported that Germany’s largest pension scheme Bayerische Versorgungskammer (BVK), Deutsche Finance America and real estate investment firm SHVO were acquiring Transamerica and two neighbouring properties for $700m (€634m), citing people familiar with the matter.
Listing agent JLL had put the assets up for sale in September last year with a projected price range of $625m to $650m.
Confirming the deal, Deutsche Finance America said the joint venture has completed the acquisition of the 48-storey tower and complex for $650m from Dutch insurer Aegon.
It is the first time the Transamerica Pyramid building has been sold since it was developed in 1972.
Jason Lucas, managing partner of Deutsche Finance America, said businesses now have a distinct focus not just on the quality of the space itself but on its environmental credentials, its flexibility, what services and amenities it provides, as well as how it promotes staff wellbeing and productivity, all of which can help firms win the war for talent.
“The COVID-19 pandemic has further accelerated these trends and, while this has led many commentators to speculate over the future of the office, our strong conviction is that physical, communal workplaces will continue to play a central and important role in our working lives, facilitating collaboration and creativity as well as personal and career development.
“However, there is no doubt that there will be a distinct polarisation in demand for those offices able to meet the exacting requirements of today’s and tomorrow’s occupiers and those that can’t.
“The transaction presents us with a hugely exciting and rare opportunity to purchase an iconic building which is a central part of San Francisco’s rich heritage, and then execute a comprehensive refurbishment and redevelopment programme to ensure it remains as appealing to occupiers for the next 50 years as it has for the last half-century.”
Michael Shvo, chairman and CEO of SHVO, said: “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.”
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