San Francisco's Transamerica Pyramid Center commands $650M

Rhea-AI Summary

On October 29, 2020, JLL Capital Markets announced the successful closure of a $650 million sale and $390 million financing for the Transamerica Pyramid Center Complex in San Francisco. The complex consists of three buildings, including the iconic Transamerica Pyramid Tower, totaling 703,537 square feet. The buyer, a partnership of SHVO and Deutsche Finance International, aims to enhance the site's offerings for modern tenants. This marks a significant transaction, as the complex had not changed ownership in nearly 50 years.

Positive

• Secured a total of $1.04 billion in transactions ($650 million sale + $390 million financing).
• Successful representation of seller Transamerica and securing acquisition loan.
• The property features a diverse tenant base from various high-value industries.

Negative

• None.

SAN FRANCISCO, Oct. 29, 2020 /PRNewswire/ -- JLL Capital Markets announced today that it has closed the $650 million sale and $390M financing of the Transamerica Pyramid Center Complex, a three-building, 703,537-square-foot, Class A office complex and development parcel encompassing an entire city block in the heart of San Francisco's Financial District. The sale included the Transamerica Pyramid Tower, one of the world's most recognizable office towers, whose iconic architecture transformed the San Francisco skyline and remains to this day an enduring symbol of the City by the Bay.

JLL represented the seller, Transamerica (as advised by its affiliate, Aegon Asset Management), and procured the buyer, a joint venture partnership between SHVO and Deutsche Finance International (DFI), which included a consortium of investors led by Bayerische Versorgungskammer (BVK), one of Germany's leading pension funds. Additionally, JLL worked on behalf of the buyers to secure the acquisition loan, which will allow the Transamerica Pyramid Tower and the surrounding complex to continue to claim its place as one of the truly premier Class A office towers globally.

Originally completed in 1972, Transamerica Pyramid Center has never traded, and has held the same ownership for its nearly 50-year history. This once-in-a-generation opportunity consisted of the Transamerica Pyramid Office Tower, a 48-story, 512,395-square-foot tower at 600 Montgomery Street; 505 Sansome Street, a 20-story, 191,142-square-foot office tower; and a corner parcel at 517 and 545 Washington Street, which will allow for the development of a nine-story, 106,807-square-foot office building. The Transamerica Pyramid Center Complex is home to a diverse tenant base including industry-leading private equity, wealth management, consulting and law firms.

The JLL Capital Markets team representing the seller was led by Senior Managing Directors Gerry Rohm, Michael Leggett, Robert Hielscher and Michael Seifer, and Senior Directors David Dokko and Erik Hanson.

Financing efforts for the sale of the complex were led by Senior Managing Director Peter Smyslowski, Executive Managing Director Mike Tepedino, and Managing Directors Robert Tonnessen and David Sitt.

"This was a unique opportunity to acquire one of the world's most recognized office towers, with its iconic architecture still globally recognizable after nearly 50 years," said Rohm. "It was a privilege to represent our client, Transamerica and Aegon Asset Management, in this transaction. Both companies have been diligent stewards of these properties and we are pleased to facilitate the sale to a partnership led by SHVO and DFI. The partnership has the vision to transform the Transamerica Pyramid Center Complex to the next generation office tower and work environment being sought after by today's tenants."

"Despite the pandemic, the investor pool for the offering was diverse, comprising both domestic and offshore investors who continue to be bullish on the long-term strength and fundamentals of the San Francisco market," added Leggett. "The Transamerica Pyramid Tower, with its location, distinctive architecture and diverse tenant base was, and will continue to be, a draw for tenants and investors worldwide."

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.

Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

About Aegon
Aegon NV's roots go back 175 years – to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with businesses in more than 20 countries in the Americas, Europe and Asia. In the US, Aegon's largest market, Aegon operates under the Transamerica brand. Today, Aegon is one of the world's leading financial services organizations, providing life insurance, pensions and asset management. Aegon never loses sight of its purpose to help people achieve a lifetime of financial security. For more information, please visit: aegon.com.

About SHVO
SHVO is a real estate investment firm built on the vision of the firm's founder and CEO, Michael Shvo, to create culture-defining experiences in iconic properties. SHVO has a proven track record of setting a standard that others follow, acquiring and managing super-prime assets that result in extraordinary value for investors. Leveraging a deep understanding of market fundamentals, insights into global trends, operational excellence, and top-tier talent, SHVO is best-in-class at unlocking value in every project the company undertakes.  This record of increasing demand while achieving premiums has secured investment from the world's most selective institutional investors. www.shvo.com

About DFI
DFI is a pan-European private equity firm with over €2.4 billion of assets under management, which specializes in customer centric real estate. It pursues value add and select opportunistic research driven strategies driving superior risk-adjusted returns through deep value investing, capitalizing on trends and transforming under-managed and under-invested assets and operating companies through proactive asset management. The firm acts as the investment adviser to its discretionary funds and co-investment partners and has a global institutional client base that includes pension funds, insurance companies, financial institutions and family offices.

DFI is independently managed by its Founding Partners with a dedicated best-in-class team operating across offices in London, Munich, Madrid and Luxembourg. It benefits from being part of the Deutsche Finance Group ("DFG"), a global investment management firm that specializes in private market real estate and infrastructure investments. DFG currently has over €6.5 billion of assets under management and is headquartered in Munich. DFG is privately owned and regulated by the Federal Financial Supervisory Authority of Germany, BaFin.

For additional information see www.deutsche-finance-international.com

About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com. 

Connect with us:
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Contact: Kristen Murphy, JLL Senior Manager, Public Relations
Phone: +1 617 848 1572
Email:  Kristen.Murphy@am.jll.com

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SOURCE JLL

FAQ

What is the value of the Transamerica Pyramid Center Complex sale by JLL?

The sale of the Transamerica Pyramid Center Complex was valued at $650 million.

Who financed the Transamerica Pyramid Center Complex sale?

The financing for the transaction amounted to $390 million.

When was the Transamerica Pyramid Center Complex sold?

The Transamerica Pyramid Center Complex was sold on October 29, 2020.

What is the significance of the Transamerica Pyramid Tower?

The Transamerica Pyramid Tower is one of the world's most iconic office towers, recognized for its distinctive architecture.

Who acquired the Transamerica Pyramid Center Complex?

The buyer is a partnership between SHVO and Deutsche Finance International.