Shvo to buy Transamerica Building at 10% discount after Covid delay

Extension on closing was granted in May; seller will assist with financing

National /
Jul.July 07, 2020 08:40 AM
The Transamerica Building in San Francisco and Michael Shvo (Rawpixel Ltd via Flickr)

The Transamerica Building in San Francisco and Michael Shvo (Rawpixel Ltd via Flickr)

Michael Shvo is getting a 10-percent discount on the $700 million acquisition of San Francisco’s Transamerica Building — thanks to coronavirus.

The developer and his partners, which include private equity firm Deutsche Finance America and German pension fund Bayerische Versorgungskammer (BVK), were granted an extension to close on the deal in May and signed a purchase agreement on Wednesday, the San Francisco Business Times reported.

The seller, Transamerica Corp, will be assisting with the financing for the deal, which is now expected to close in early September. A spokesperson for Shvo said that the deal was moving forward but declined further comment, citing the due diligence period for the transaction.

The sale marks the first time the 853-foot landmark has changed hands since being built in 1972. The office building, with an address at 600 Montgomery Street, had an occupancy of about 90 percent when listed for sale last August.

In the months preceding the coronavirus crisis, Shvo and his partners were among the most aggressive investors in U.S. real estate, acquiring $3.5 billion worth of properties in 18 months. Other acquisitions included the “Big Red” office tower in Chicago and a pair of mixed-use office buildings in New York.

This isn’t the first big San Francisco real estate deal to face coronavirus-related delays. China Oceanwide’s roughly $1 billion sale of its partially-built Oceanwide Center development has seen closing pushed back repeatedly, with a new buyer entering the deal in March. [SFBT] — Kevin Sun

 

Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
Here’s what the $10M-$30M NYC investment sales market looked like last week
Here’s what the $10M-$30M NYC investment sales market looked like last week
7 DeKalb Avenue with Avanath Capital Management CEO Daryl Carter and Daniel Brodsky (Brodsky, Avanath Capital, Getty)
Brodsky selling DoBro apartments for $100M
Brodsky selling DoBro apartments for $100M
159 Broadway in Brooklyn and Madison Realty Capital’s Josh Zegen (Getty, Madison Realty Capital, Stonehill & Taylor Architects)
Madison Realty’s pickup of Williamsburg hotel site tops midsize i-sales
Madison Realty’s pickup of Williamsburg hotel site tops midsize i-sales
From left: Wafra’s Fawaz Al-Mubaraki and The Westover Companies’ Guntram Weissenberger with 138 East 12th Street (JLL, Getty, Wafra, The Westover Companies)
Wafra sells East Village’s The Nathaniel for $57M
Wafra sells East Village’s The Nathaniel for $57M
Soloviev Group chairman Stefan Soloviev and the Solow Building at 9 West 57th Street (Getty, Soloviev Group, King of Hearts, CC BY-SA3.0 - via Wikimedia Commons)
Soloviev denies effort to sell 9 West 57th
Soloviev denies effort to sell 9 West 57th
Sonesta Hotels’ John Murray and The Shelburne Hotel (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Affinia, Sonesta)
TRD Pro: Biggest hotel sales of the past year
TRD Pro: Biggest hotel sales of the past year
ZD Jasper Realty's Jasper Wu with 23-17 41st Avenue (ZD Jasper, Google Maps, Getty)
GTJ sells East New York warehouse; Kartsonis, Wu cut deals
GTJ sells East New York warehouse; Kartsonis, Wu cut deals
(Illustration by The Real Deal with Getty Images)
How to sell a building today: Package it with cheap debt
How to sell a building today: Package it with cheap debt
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...