San Francisco | Transamerica Pyramid | 853 FT | 48 FL |

San Francisco
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Yum!

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Well that’s pretty messy.

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The allegations make it seem Shvo turned the Transamerica pyramid into a pyramid scheme.

Or maybe a Ponzi scheme?

I forgot the difference between the two.

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maybe we should call it a Shvo Swindle.

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I was thinking he is on the shady side.

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https://www.sfchronicle.com/realestate/article/s-f-transamerica-pyramid-lawsuit-19589112.php

Transamerica Pyramid owner Michael Shvo described one of the signature San Francisco office tower’s newest tenants as “incapable of paying back their debts” in a lawsuit filed in New York on Monday.

In his lawsuit, the luxury real estate owner and developer requested that a New York court dismiss a dozen allegations contained in a prior lawsuit brought by the members-only CORE Club against Shvo and his partners last month, including alleged fraud in connection with the club’s lease and buildout of its planned new location at the pyramid at 600 Montgomery St., a 48-story tower that the partners acquired in 2020 for $650 million.

Soon after, they announced renovation work at the property that would bring their total investment into the pyramid to $1 billion — a massive undertaking amid continued turmoil in the real estate market in the wake of the pandemic. The lease with the Core Club appeared to be a pillar of the pyramid’s ongoing revitalization and effort to attract new office tenants.

. . .

In his counter lawsuit filed Monday, Shvo fired back, calling the club’s founders “cash strapped” and accusing the business of launching a “public hit job” after it failed to live up to its “contractual obligations” in order to pressure its landlord into granting a “rent reduction, a lease rescission and other unwarranted concessions.”

. . .

The club’s attorney, Adam Glassman, on Monday described Shvo’s motion to dismiss the club’s lawsuit as a “predictable attempt to avoid accountability for his actions and to delay the legal process,” and that it is not “an isolated incident.”

“Mr. Shvo has a documented history of engaging in questionable business practices, including deceiving residential buyers, commercial tenants, and suppliers. He consistently over-promises and under-delivers, leaving a trail of financial ruin and broken trust in his wake,” Glassman said, adding that Shvo “presented himself as a trusted partner” to the club, then “used this position of trust to enrich himself at their expense.”

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