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Transamerica Pyramid Set to Trade as Ownership Rift Deepens

Transamerica Pyramid Set to Trade as Ownership Rift Deepens

With $1B poured into upgrades, institutional owners are recalibrating risk and returns.

Nina Dale
February 26, 2026

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Good morning. A $1B bet on a San Francisco icon is nearing an exit. The Transamerica Pyramid is set to trade as institutional investors recalibrate risk in a reshaped office market.

Today’s issue is sponsored by Henry—turn your underwriting model into a polished, on-brand presentation in minutes.

🖥️ Don’t Miss Today’s Webinar: Learn why multifamily investors are shifting capital to manufactured housing, with Vintage Capital CIO Brad Johnson breaking down the data behind the move.

CRE Trivia 🧠

Which iconic mall was the first enclosed shopping mall in the U.S.?

(Answer at the bottom of the newsletter)

Market Snapshot

S&P 500

GSPC

6,946.13

Pct Chg:
+0.81%

FTSE NAREIT

FNER

822.25

Pct Chg:
-0.30%

10Y Treasury

TNX

4.052%

Pct Chg:
+0.019

SOFR

30-DAY AVERAGE

3.67%

Pct Chg:
-0.00

*Data as of 2/25/2026 market close.

Iconic Sale

Transamerica Pyramid Set to Trade as Ownership Rift Deepens

Courtesy: Shvo

San Francisco’s most iconic office tower is under contract to change hands as cracks widen within its ownership group.

The deal: A JV led by Michael Shvo and Deutsche Finance America has agreed to sell the Transamerica Pyramid to Cyprus-based Yoda Plc. The price was not disclosed, and the deal has yet to close. The group bought the 500K SF tower for $650M in 2020.

The repositioning: Ownership poured nearly $1B into a multiyear renovation, reopening the tower in 2024 with a revamped lobby and exclusive tenant amenities. The strategy pushed occupancy to about 85%, with some recent leases reportedly topping $300 per SF. The asset was positioned as a trophy bet on San Francisco’s recovery.

Capital strain: German pension giant Bayerische Versorgungskammer committed roughly €1.6B to ventures with Shvo and DFA. It has warned losses — including on Transamerica — could exceed €850M, written down part of its stake and moved to distance itself, paving the way for asset sales.

Market backdrop: The sale also comes as San Francisco’s office market struggles with high vacancy and valuation resets. Higher interest rates have pressured capital stacks, even for premier assets. Ownership maintains the tower is performing operationally despite broader headwinds.

Portfolio pullback: The Transamerica deal follows other exits by the Shvo–DFA venture, including Beverly Hills condo bulk sales and Miami development sites. Some traded at discounts, including one via deed-in-lieu, making the Pyramid the latest step in a broader unwind.

➥ THE TAKEAWAY

Icons aren’t immune: The Transamerica Pyramid’s sale underscores a sharper reality — in a higher-rate, post-pandemic market, even landmark towers can become liquidity events when capital partners fall out of alignment.

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✍️ Editor’s Picks

Opinion vs. data: Everyone has a take on AI in CRE, but few have hard data. CRE Analyst’s five-minute, anonymous survey delivers the 2026 AI in Real Estate Report to participants with exclusive insights. (sponsored)
Tower turnaround: A development team is bidding to take over LA’s graffiti-covered Oceanwide Plaza towers and restart the stalled project.
Transaction thaw: CRE transaction activity is stabilizing as pricing resets and cautious capital return to the market.
Can you gift a 1031 Exchange property? Gifting a 1031 exchange property is possible, but timing and tax implications matter. Learn how gifting strategies can impact deferral, estate planning, and long-term wealth preservation. (sponsored)
Risk reset: The Fed will drop “reputation risk” from bank exams, potentially easing pressure on lenders.
SFR squeeze: New Treasury definitions could determine how hard single-family rental investors are hit by federal rules.

🏘️ MULTIFAMILY

Vintage value: Bozzuto and Invesco are investing $1B to buy and upgrade discounted East Coast apartments, betting today’s oversupply will fuel tomorrow’s rent growth.
Alt capital: Borrowers are increasingly looking beyond Fannie Mae and Freddie Mac for multifamily financing as deal structures and capital stacks grow more complex.
Supply drag: Apartments.com reports modest rent growth in February 2026, signaling a market still finding its footing amid elevated supply.
Mom-and-pop: Independent landlords saw softer rent growth and performance in February, reflecting continued pressure from new deliveries and affordability constraints.
Foreclosure move: Arbor Realty Trust has initiated foreclosure on two DeKalb County apartment properties, underscoring ongoing distress in parts of the multifamily market.

🏭 Industrial

Mission critical: Evergen Equity grew its Texas footprint by acquiring 254K SF of fully leased, mission-critical Houston industrial assets backed by 11-year triple-net leases to national tenants.
Infrastructure bet: Realterm is backing Greenpoint’s industrial expansion, adding capital to grow its logistics-focused portfolio.
Detention deal: ICE’s purchase of a New Jersey warehouse for use as a detention center is drawing local opposition and political scrutiny.
Ripple effect: The recent Supreme Court tariff decision could reshape costs and demand across the industrial real estate sector.
Deportation dispute: A Maryland warehouse tied to ICE operations faces legal challenges over its role in federal deportation efforts.

🏬 RETAIL

Experiential anchor: Private clubs are emerging as a new kind of mall anchor, backfilling large retail spaces with membership-driven concepts.
Franchise flip: Sonic has sold 78 drive-in restaurants to a fast-growing franchisee, accelerating its asset-light growth strategy.
Gym gains: Planet Fitness plans to open nearly 200 new clubs this year, doubling down on expansion amid steady gym demand.

🏢 OFFICE

Office appetite: In-N-Out has signed one of Los Angeles’ largest office leases as part of a corporate relocation and expansion plan.
Vacancy watch: Yardi Matrix reports national office fundamentals remain soft, with elevated vacancies and muted rent growth defining early 2026.
Empire expansion: Developer Douglas Jemal is adding to his Washington, DC portfolio, continuing to grow his sizable property empire.

🏨 HOSPITALITY

Paradise premium: An ultra-luxury Hawaii resort is outperforming the broader hotel market, defying industrywide softness with strong high-end demand.
Holiday hedge: Apple REIT leaned into leisure-focused assets during market disruptions, helping steady performance through volatile cycles.

📈 CHART OF THE DAY

Miami leads major U.S. metros in rent growth this decade with a 52% surge since 2020, narrowly topping Cincinnati, while San Francisco lags with just 5% growth after its pandemic-era rent slump.

CRE Trivia (Answer)🧠

Southdale Center in Edina, Minnesota, which opened in 1956, was designed so shoppers could escape the cold winters.

Transamerica Pyramid Set to Trade as Ownership Rift Deepens

With $1B poured into upgrades, institutional owners are recalibrating risk and returns.