Transamerica Pyramid Heart, which has offered a particular pyramid form to the San Francisco skyline for greater than 50 years, has reopened as a part of a $400 million renovation by proprietor SHVO and Deutsche Finance, in partnership with famous architect Lord Norman Foster and his design agency Foster + Companions.
The renovation was intensive, with a specific deal with the 510,000-square-foot constructing’s frequent areas. Amongst different main modifications alongside these strains, the constructing now has a grand foyer, an area that the earlier iteration lacked, with a espresso bar, present store and florist. The constructing additionally has new gathering locations, together with a health club, spa, convention areas and, for tenants solely, a bar on the twenty seventh ground, and a top-floor bar.
Apart from the pyramid-shaped principal constructing, the renovation additionally includes two smaller parts which can be a part of the complicated, together with an workplace constructing at 505 Sansome Avenue, and a website set for about 100,000 sq. toes of workplace redevelopment at 545 Sansome Avenue.
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Anchoring the three buildings is Redwood Park, consisting of a grove of mature redwood bushes shading public open area. The renovation absolutely refurbished the park, connecting it to the buildings for the primary time.
The 853-foot principal constructing is reportedly 70 % occupied, although more room may be taken, pending negotiation. The constructing can be one of many dearer within the nation, with area reportedly fetching greater than $200 per sq. foot from time to time, however extra typically within the $125 to $180 vary.
As a part of the reopening, the constructing’s spire was re-lit for the primary time with over 1,300 newly put in LED lights, which is a part of a brand new lighting design for the construction from the bottom to the spire, each inside and exterior. Lighting specialist L’Observatoire Worldwide undertook the lighting re-design.
SHVO acquired the complicated on the peak of the pandemic in 2020 with financing from Deutsche Finance America and German pension fund Bayerische Versorgungskammer, for $650 million. With the renovation prices included, the house owners have put north of $1 billion within the property.
A few of SHVO’s different properties embody the Raleigh Resort in Miami Seaside, 333 South Wabash Avenue in Chicago, Mandarin Oriental Residences in Beverly Hills, Mandarin Oriental Residences Fifth Avenue in New York Metropolis and the AMAN New York Resort and Residences on the Crown constructing.
San Francisco workplace market nonetheless robust
Within the post-pandemic years, the town of San Francisco continues to have an enormous hangover of workplace area, with the market’s workplace emptiness charge coming in at 36.8 % as of the second quarter of 2024, in keeping with CBRE. The quarter noticed 290,000 sq. toes of adverse web absorption.
Nonetheless, tenants took about 2 million sq. toes out there within the second quarter, making it the second-best quarter for leasing exercise within the final two years, solely behind the fourth quarter of 2023, famous CBRE.
Rents dropped by 7 % year-over-year, with the common direct asking charge down 0.2 % for the quarter, coming in at $68.43 per sq. foot within the second quarter of 2024. CBRE additionally reported that no vital workplace venture was underneath building within the metropolis as of the second quarter.
