Jack London Square Partners paid $17.2 million for the buildings and a 66-year land lease. The port's two-year leaseback of 15,000 sf, given a lease rate of around $26 per sf, is worth about $780,000.
The lease deal faces only one obstacle. When the buildings were sold, the deal was sharply criticized by business owners in the area and the NAACP for leaving out black and minority developers in the contracting process. If an investigation proves this allegation to be true, the port may have to reevaluate the contract and sales transaction.
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