That\u2019s technically a small gain from the $650 million Shvo\u2019s investors \u2014 Bayerische Versorgungskammer (BVK) and Deutsche Finance \u2014 paid in 2020. But considering the partners spent an additional $400 million on renovations, the project will go down in both firms\u2019 histories and on their balance sheets as a debacle.\u00a0<\/p>\n
In public, Shvo touted \u201crecord-breaking\u201d leases at the renovated property as evidence that there was demand for his project. But the rent credits and generous remodeling allowances his team was giving tenants in order to woo them from other buildings<\/a> cut into those profits.\u00a0<\/p>\n With the tower already 85% leased this year, Shvo had limited avenues to increase the property\u2019s earning potential moving forward.\u00a0<\/p>\n Furthermore, the property includes two other office buildings on the same Sansome Street block that never garnered as much attention or rents. One of those buildings, at 545 Sansome, is entitled for redevelopment, but breaking ground would take it off the market for tenants and require even more investment.\u00a0<\/p>\n Taken altogether, the San Francisco icon had become dead weight for Shvo\u2019s investors \u2014 headlined by BVK, Germany\u2019s largest public pension fund<\/a>. Furious over billions of dollars lost on U.S. real estate bets made with Shvo, the investors departed with executives who had personal ties to the developer and explored ways to oust him as a partner<\/a> last year.\u00a0<\/p>\n Eventually, their only way out was to cut their losses and sell.\u00a0 <\/p>\n The pyramid alone cost Yoda $600 million, or $1,170 per square foot. The other two buildings and the outdoor park at 535 Washington St. cost $91 million.\u00a0\u00a0<\/p>\n Considering that the majority of office properties in recent years have traded hands for many times less, this was probably as good a deal as the sellers could have hoped for, given the limited pool of qualified and motivated buyers.\u00a0<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/-S3840x2561-FPNG.png\"\/)
Michael Shvo with Mayor London Breed, state Sen. Scott Wiener, former Mayor Willie Brown, and Supervisor Aaron Peskin at the 2023 groundbreaking for the Transamerica Pyramid renovation. Camille Cohen\/The Standard<\/p>\n