Michael Shvo

Where is Shvo going to be in 2026?

By 2026, we will have completed the redevelopment of the Transamerica Pyramid Center, a complete revitalization of this iconic San Francisco block led by Norman Foster, as well as completed the return of The Raleigh, a $1 billion development that will see this storied property restored to its original splendor, in what will be the first hotel and residences designed by Peter Marino in Miami Beach. 

I have had the great fortune of owning and developing some of the most iconic properties, such as the Big Red in Chicago and the old Coca-Cola Building in New York, but there is something particularly unique about Transamerica Pyramid and The Raleigh — not least because of the special place they hold in the hearts of so many people that have visited them over the years. 

More broadly, we will continue to elevate lives by being at the cutting edge of design and hospitality, leading the way in offering members of the Shvo community — residents, tenants, neighbors and visitors alike — a new way of living, working and playing. 

Where is Shvo going to be in 2028?

Given our partnership with Germany’s largest pension fund, essentially the state pension fund, we take a long-term approach toward our investments. As such, we will likely be in a position where we not only still own our existing portfolio but also have probably expanded it.

Where is Shvo going to be in 2033?

As above, with an even bigger portfolio of ultra-luxury assets.

Tell us about a successful financing you’ve done in the last 12 months. Or tell us about an unsuccessful one.

In July 2023, we secured $190 million in new financing for the first stage of construction at The Raleigh. The fact that we raised that amount, despite the macro environment, underscores that there is capital available for developers pursuing unique developments in top-tier markets. Fortunately, those are the only assets and markets we focus on. 

More broadly, we made a conscious decision to secure long-term debt in 2019 and 2020, so the bulk of our portfolio is capitalized at low interest rates. 

When will we know the market has stabilized? (Be specific!)

We are very focused in our approach to real estate, in that we only focus on the ultra-luxury or high end of the market. This subsection of the market has not only stabilized but is performing exceptionally well, largely due to the unparalleled flight to quality we have witnessed in recent years. 

If you were to invest your own money in someone else’s real estate, who do you like and why?

Anything touched by my friends and collaborators, Peter Marino and Norman Foster.

What’s the biggest market opportunity as we round out 2023?

Office, but only in super prime locations in major cities. I’ve been saying this since March 2020, when the pandemic first swept across the world, and have invested billions of dollars in support of this belief. 

Take San Francisco as an example. Everyone wrote off the city, but it’s making a comeback and will be stronger than ever before, driven in part by innovation in the AI space. At Transamerica Pyramid, for example, we have more than doubled rents since completing our acquisition at the start of the pandemic.

Have you had a lot of staff turnover?

COVID had an undeniable impact on people’s thinking about where they want to live and work, and we had some people leave as a consequence of that. That being said, we have grown significantly in size over the course of the pandemic and opened new offices across the East and West coasts — in Miami, Beverly Hills, San Francisco and Chicago — where we’ve welcomed some great people and we continue to recruit for select roles.

Do you feel personally safe moving through NYC? Always.

Jerome Powell: Are you a fan or critic? Critic.

Can’t-live-without technology now? My iPhone, so I can FaceTime my children when they get out of school. 

Elon Musk is …? Great.

Taylor Swift or Beyoncé? My daughter Emma says Taylor Swift.

Artificial intelligence — good or bad? Great.

Mischa’s or Nathan’s for a hot dog? Neither because they aren’t kosher.

Netflix or Hulu? Netflix. 

What character are you in “Succession”? Haven’t had time to watch it.