San Francisco's iconic Transamerica Pyramid has sold for $711 million, its first sale in history

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• San Francisco’s iconic Transamerica Pyramid has sold for $711 million to a New York developer.
• It’s the first sale in the building’s history since its construction in 1969. The pyramid will retain its name.
• The now-beloved Transamerica Pyramid was despised by many who opposed the addition of tall buildings to the cityscape back when it was constructed.
• The backlash contributed to office construction being limited in San Francisco, a measure that remains in today’s crowded commercial and housing market.
• Visit Business Insider’s homepage for more stories.

San Francisco’s iconic Transamerica Pyramid has sold for $711 million to a real-estate group led by New York developer Michael Shvo, as Bloomberg’s Noah Buhayar reports. Transamerica’s COO Jay Orlandi confirmed the sale in an email to Business Insider. 

“Transamerica has accepted SHVO’s offer to purchase the Transamerica Pyramid property in San Francisco for $711 million. The sale is expected to close in second quarter of 2020.”

The deal is the first sale in the building’s history since it was built in 1969 as headquarters for insurance company Transamerica.

Two adjacent buildings on Sansome Street were reported to be included in the deal when the pyramid was first listed for sale for $600 million in August 2019. Transamerica originally intended to sell only half of the building but pivoted to a full sale of the structure after a lack of buyer interest. 

Shvo’s investment group includes German pension fund Bayerische Versorgungskammer and Deutsche Finance. Shvo is known for luxury residential properties but has recently ventured into office space, according to Bloomberg. And the developer recently added Manhattan’s Coca-Cola building to its portfolio, which is valued at more than $6 billion overall.

Michael Shvo did not immediately respond to Business Insider’s request for comment.

The building’s figure is part of the insurance company’s logo, but the insurer hasn’t been housed in the building for years. Northwestern Mutual, among others, fills its floors.

The building will still be branded as the Transamerica Pyramid likely to the relief of many who hold the landmark dear to their heart. But it wasn’t always such a hit with the public.

SEE ALSO: Photos show how San Francisco’s new buildings built in the last decade have permanently changed the city

The 1,040-foot building was detested when it was first built in 1969.

Source: Curbed SF

The San Francisco Chronicle architectural critic Allan Temko called it an abomination and “the biggest architectural dunce cap in the world.”

Source: SF Gate

It was “the most portentously and insidiously bad building in The City,” wrote the San Francisco Examiner Magazine.

Source: SF Gate

It also became the city’s tallest building, a feat that fed an ongoing resistance against more tall buildings cluttering the cityscape.

Source: Bloomberg

The public voted to restrict the construction of office high-rises after that, a limitation that still exists today as the office market grows even more squeezed and commercial rents continue to skyrocket.

Source: Bloomberg

Only the biggest tech players can afford dibs on office space — old and new — in the city.

Source: Business Insider

San Francisco’s “East Cut” neighborhood specifically has become the city’s Big Tech central, with Google, Facebook, and LinkedIn staking their flag in the area.

Source: Business Insider

This is also where Salesforce Tower sits, which eclipsed the Transamerica Pyramid as the city’s tallest building when it was completed in 2017.

Source: Business Insider

And like the Transamerica Pyramid, the Salesforce Tower was met with mixed reviews from the public as well as urban and architectural critics when it was built.

Source: Curbed SF

As The New York Times wrote, “the tower is not beautiful, but is impossible to ignore.”

Source: The New York Times

The East Cut, SOMA, and the Financial District are most populated with tech offices.

Source: Business Insider

The area in which the Transamerica Pyramid sits is less so. It sits at the southern end of Columbus Avenue, with the North Beach District spanning out from its doorstep.

The tower’s design is also a bit dated, as Bloomberg notes. But dated as it may be, it’s also solidified its place in the history of San Francisco’s iconic architecture.

Source: Bloomberg

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