Subjects: ECO, RLE
Transamerica Pyramid Center's Redevelopment to Create 6,500 Jobs and Generate $2.5 billion in Annual Economic Output
SAN FRANCISCO, Dec. 14, 2023 /PRNewswire/ -- SHVO and HR&A Advisors, an industry-leading economic development and research firm, today released a comprehensive analysis concluding that the redevelopment of Transamerica Pyramid Center is expected to generate $2.5 billion in economic output and create 6,500 jobs on an annual basis upon completion.
The iconic property, acquired by SHVO in partnership with Deutsche Finance for $650 million in 2020, is undergoing a thoughtful $400 million transformation led by world renowned architects Foster + Partners. The partnership's total commitment of $1 billion represents the single largest investment in downtown San Francisco since the start of the pandemic, and will revitalize the Transamerica Pyramid District, which encompasses an entire city block in the Financial District.
The key findings of the HR&A Advisors report include the following:
- SHVO's redevelopment of Transamerica Pyramid Center will lead to the creation of 2460 jobs and generate approximately $513 million in economic output over the course of the construction period.
- Upon stabilization, Transamerica Pyramid Center is expected to generate 6500 jobs annually and $2.5 billion in economic annual output.
- The Transamerica Park will attract roughly 3 million visitors per year, which will contribute an additional $12.9 million in sales for surrounding retailers.
- On-going operations at Transamerica Pyramid Center are expected to deliver approximately $27.1 million in annual tax and fee revenues.
With its world-class architecture, state-of-the-art amenities, and a reinvigorated park open to members of the public, the revitalization of this iconic site is encouraging firms and individuals to return to the office, with the influx of activity anticipated to create a ripple effect benefiting local retailers and businesses across the downtown neighborhood.
"The Transamerica Pyramid has always been ahead of its time as an enduring symbol of San Francisco's spirit of innovation. Working with Lord Norman Foster and the team at Foster + Partners, we have thoughtfully remastered the landmark for the next 50 years so it can return to its rightful place as a destination for the world's most creative minds, while serving as a catalyst for economic growth across Downtown San Francisco," stated Michael Shvo, Chairman & CEO of SHVO.
The economic report by HR&A Advisors, as well as renderings and images of Transamerica Pyramid Center, can be accessed here.
ABOUT TRANSAMERICA PYRAMID CENTER
The Transamerica Pyramid opened in 1972 at 600 Montgomery Street, long known as the "Wall Street of the West" and the gateway to San Francisco's Financial District. The quartz-studded concrete tower has over 3,000 windows, rises 853 feet, and was designed by William L. Pereira & Associates, the famed firm that helped pioneer California's distinctive modernism in the second half of the 20th century. It is currently the tallest pyramid structure on the planet.
The Complex covers an entire city block and includes three buildings totaling approximately 750,000 square feet ? the iconic pyramid-shaped tower, the office building at Two Transamerica (505 Sansome Street), and a site set for approximately 100,000 square feet of office redevelopment at Three Transamerica (545 Sansome Street). Anchoring the three buildings is the Redwood Park, an urban oasis featuring a grove of mature redwood trees shading public open space.
In 2020 the building was sold for the first time in its history to SHVO and Deutsche Finance for $650 million, the United States' largest commercial transaction to occur amidst the COVID-19 pandemic. The Complex is slated for a multi-phase renovation estimated at $400 million, intended to elevate the Pyramid from a visual marvel into a magnetic destination for both tenants and the public.
ABOUT SHVO
SHVO is a real estate development and investment firm built on the vision of Chairman & CEO Michael Shvo to create culture-defining experiences in iconic properties. Headquartered in New York City with offices in Miami, San Francisco, Los Angeles, and Chicago, SHVO owns and operates a national portfolio valued at more than $8 billion and 4.5 million square feet across commercial office and retail space, hospitality, and luxury residential assets.
The firm's selective portfolio of architecturally significant properties, from innovative ground up new developments to revitalized landmarks that define skylines in the world's leading cities, includes the Transamerica Pyramid in San Francisco, The Raleigh Hotel in Miami Beach, 333 South Wabash Avenue ('The Big Red') in Chicago, Mandarin Oriental Residences at 9200 Wilshire Boulevard in Beverly Hills, Mandarin Oriental Residences Fifth Avenue in New York City and the AMAN New York Hotel and Residences at the Crown building.
Renowned for its expertise, SHVO is fully integrated with highly diversified industry experience in every aspect of acquisitions, finance, development, design, sales, leasing, property management, hospitality, and sustainability.
ABOUT HR&A ADVISORS
HR&A Advisors, Inc. (HR&A) is an employee-owned real estate and economic development company with offices in New York, Los Angeles, Dallas, Washington DC, and Raleigh. For over forty years, the company has guided real estate investors and developers through complex development projects in North America and abroad.
HR&A's mission is to ensure implementation of its visionary clients' aspirations: to create vital places, build more equitable and resilient communities, and improve people's lives. The company accomplishes this mission by deploying the extraordinary analytic and creative talent of its employee-owners, who come from a diversity of backgrounds, have a breadth of lived experience, and share a passion for cities. HR&A Advisors is motivated by complex challenges, dedicated to its clients, and fulfilled by making lasting impact.
CONTACT:
Mason Harrison
[email protected]
209-743-9439
SOURCE SHVO
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