Transamerica Pyramid Center Unveils $400M Transformation by SHVO, Deutsche Finance & Foster + Partners

The iconic Transamerica Pyramid Center, which has defined the San Francisco skyline for over 50 years, recently reopened after undergoing a $400 million renovation. The renovation was led by SHVO and Deutsche Finance in collaboration with architect Lord Norman Foster and his firm, Foster + Partners. A key focus of the update was transforming the building’s 510,000-square-foot common areas, including the addition of a grand lobby, which now features a coffee bar, gift shop, and florist. New amenities for tenants include gathering spaces such as a gym, spa, conference areas, and a private bar on the 27th floor.

Expanded Renovation to Adjacent Buildings

In addition to the pyramid-shaped main building, the renovation also extended to other parts of the complex. This includes the refurbishment of an office building at 505 Sansome Street and the redevelopment of 100,000 square feet of office space at 545 Sansome Street. A highlight of the project is Redwood Park, a public open space shaded by redwood trees, which has now been fully integrated with the buildings.

Occupancy and Pricing

Currently, the 853-foot main building is 70 percent occupied, with additional leases under negotiation. The building commands high rental rates, sometimes exceeding $200 per square foot, though the average rates typically range between $125 and $180.

Lighting Redesign and New Ownership

As part of the reopening, over 1,300 LED lights were installed on the building’s spire, marking the first time the spire has been re-lit in years. SHVO purchased the complex in 2020 for $650 million with support from Deutsche Finance America and Bayerische Versorgungskammer. Including renovation costs, the total investment in the property exceeds $1 billion.

SHVO’s Other Major Properties

SHVO’s portfolio includes several other high-profile properties such as the Raleigh Hotel in Miami Beach, 333 South Wabash Avenue in Chicago, Mandarin Oriental Residences in Beverly Hills and New York, and the AMAN New York Hotel and Residences.

San Francisco Office Market Challenges

Despite the renovations at the Transamerica Pyramid Center, the San Francisco office market remains challenging. As of the second quarter of 2024, the city’s office vacancy rate was 36.8 percent. The quarter saw 290,000 square feet of negative net absorption, yet tenants still leased around 2 million square feet of office space, marking one of the strongest quarters in two years. Rents fell by 7 percent year-over-year, with the average asking rate at $68.43 per square foot. No significant new office construction was reported during this period.