Michael Shvo's 2020 renovation of the Transamerica Pyramid is paying off. The building has a 20% vacancy rate, half the city average, and top-floor rents now exceed $300 per square foot, more than double since 2020. A major law firm just leased over 125,000 square feet.
The billion-dollar bet on San Francisco's Transamerica Pyramid is starting to pay off in a major way. Developer Michael Shvo purchased the iconic tower in 2020 for $650 million and spent another several hundred million giving it a complete overhaul with Foster and Partners at the helm, hoping to command top-of-market rents. And that's exactly what's happening. A slew of tenants have filled the building. It's about 20% vacant based on latest reporting, which is about 50% less vacancy than the citywide average. And top floor rents are asking over $300 a foot, rents so high they've only been seen in two locations in New York City. The building is generally —seen rents more than double since it was purchased in 2020. And thanks to its wellness and hospitality-driven focused amenities, it is garnering top-tier tenants, including a big law firm that just leased over 125,000 square feet of the building. Really happy to see the building breathe new life into downtown with incredible new tenants and office spaces and brand new food concepts that have been extremely popular. Plus the beautiful, completely reimagined Redwood Park at the Pyramid Center. Let me know what you think in the comments and follow me for more Bay Area real estate.
