M
ichael Shvo, CEO of SHVO, has faced numerous challenges since acquiring the Transamerica Pyramid in 2019. Despite a six-month bidding process and competition from 44 bidders, he secured the deal with Deutsche Finance America and Bayerische Versorgungskammer. However, the pandemic led to lender withdrawal, and the city's Building Inspection Department closure hindered permit completion.
The acquisition finally closed for $650 million in October 2020, but Shvo encountered further obstacles, including a lawsuit from CORE Club over lease terms. Despite these challenges, SHVO has seen significant success with the pyramid, securing three leases at significantly higher rents than average and partnering with TED AI San Francisco as its official hospitality partner.
Shvo attributes the project's success to his vision and perseverance, stating that every challenge was an opportunity to prove himself. He believes that owning the Transamerica Pyramid has been a catalyst for rejuvenation in Jackson Square and surrounding neighborhoods.
When asked about adding more office space in a city with available inventory, Shvo argued that existing buildings are outdated and unattractive to tenants. He emphasized the importance of amenities, citing SHVO's focus on creating a hospitality-level experience at the Transamerica Pyramid.
Shvo praised the City of San Francisco for its support, stating that his company has been a catalyst for growth in the area. He believes that the stakes are high for the city, as the pyramid's success can have a ripple effect on surrounding neighborhoods and real estate prices.
In conveying the value of the Transamerica Pyramid to German investors, Shvo highlighted the building's historic importance and potential for transformation into one of America's greatest buildings. He emphasized that his partners' investment was behind a specific vision to revitalize the property.
When asked about competing with sublease office space, ShVO compared it to choosing between a used car or a luxury vehicle – each has its own target market. He believes SHVO is geared towards a specific user and offers an unparalleled experience in San Francisco's office market.
