The owners of the Transamerica Pyramid have agreed to sell the landmark skyscraper to a public investment company based in Cyprus, sources say.
Michael Shvo, the controversial developer and the face of Pyramid’s current ownership, will not stay on as operator.
Bloomberg first reported (opens in new tab) that the buyer is Yoda PLC, which was founded in 2019 and went public in 2022. The firm invests in shipping, real estate, hospitality, technology, and healthcare.
The deal would mark the second time the Transamerica Pyramid has sold in six years. Sources did not disclose the purchase price. The property last traded hands in 2020 for $650 million and was renovated for an additional $400 million.
“It has been a privilege to serve as steward of one of the world’s most iconic skyscrapers,” Shvo said in a statement. “Through a hospitality-led vision … we transformed the property into a world-class office destination defined by service, experience, and cultural vitality.
“I am confident it will continue to define the skyline and serve generations to come under its next custodian,” he added.
Last month, The Standard reported that the owners of the Transamerica Pyramid — Bayerische Versorgungskammer (BVK), Germany’s largest public pension group, and Deutsche Finance, a private equity real estate investor — were ousting the developer amid mounting scrutiny about lavish spending and losses in U.S. real estate.
Afterward, sources told The Standard that a new ownership group was interested in taking over the Transamerica Pyramid investment in an off-market deal.
Yoda PLC is listed on the Cyprus Stock Exchange and has a market capitalization of about $3.3 billion. It has extensive investments in Greek real estate, particularly in the luxury hospitality sector, according to the firm’s website.
Though Yoda is based in Cyprus, its CEO, Alon Bar, like Shvo, is Israeli. He has a computer science degree from Reichman University, outside Tel Aviv. In college, he majored in entrepreneurship through the school’s Sam Zell Program, which was founded and funded by the American billionaire behind Equity Residential, one of the largest U.S. apartment owners and operators.
Yoda PLC is controlled by Greek real-estate investor Ioannis Papalekas. The firm could not be reached for comment.
BVK declined to comment. Deutsche Finance did not respond to requests for comment.
The Transamerica property contains two other nearby office buildings located at 505 and 545 Sansome St.
In nearly six years at the helm of the property, Shvo led the full-scale renovation and transformation of the ground floor into a 5,000-square-foot public park.
His strategy was predicated on sprucing up the property, then renting it out often at rates previously unseen in the local market. Since it reopened less than two years ago, the Transamerica Pyramid has siphoned off some of the city’s bougiest office tenants.
However, sources familiar with those leases say the deals are laden with tenant concessions and costly remodel allowances that ultimately hurt the landlord’s bottom line.
Michael Shvo convinced Germany’s largest pension fund to invest more than $1 billion in San Francisco. | Source: Morgan Ellis/The Standard
Additionally, Shvo has faced challenges related to an elite members-only business, Core Club, that was slated to anchor the renovated property as a key tenant. The parties remain locked in overlapping lawsuits. Core alleges that Shvo misrepresented himself and misused funds, while he claims his investors are owed millions in unpaid rent.
The saga at the Transamerica Pyramid marks the latest chapter in Shvo’s track record with investment partners. After pleading guilty to tax evasion (opens in new tab) in 2018, Shvo was introduced to Deutsche Finance and BVK by Turkish businessman Serdar Bilgili. Together, the group went on a real estate buying spree across the U.S. using German funds.
In 2020, Shvo and Bilgili had a falling out that involved legal action (since settled), wherein the latter accused his former friend and partner of overcharging on fees to finance private jet travel and monthly rent payments for a personal penthouse in Miami.