The building is located at 300 Lakeside Dr. in Oakland. The transaction began in November when the publicly traded aluminum products manufacturer filed a motion with the U.S. Bankruptcy Court for the District of Delaware to sell its interests in the building based on Summit's offer.
Kaiser filed for Chapter 11 reorganization on Feb. 12, 2002. The company hasn't occupied much space in the building since the 1990s and more than one-third of it was vacant when the disposition process began.
Summit Commercial is a Highridge Partners company that develops office and industrial buildings in selected supply constrained suburban markets in California. In the East Bay, Summit owns the three-building, 414,408-sf Dublin Corporate Center, a class A office completed in two phases in 2000 and 2001. Summit also owns two office buildings in the Los Angeles and three in Arizona and is developing a 670-acre business park in West Sacramento called Southport.
Kaiser also is expected to close this quarter on the sale of another non-core asset, its dormant smelter plant in Tacoma, Wash., for between $12.1 million and $16.1 million. Kaiser entered into a sale agreement with the Port of Tacoma in December.
The Tacoma facility has been fully curtailed since mid-2000. The transaction includes about 96 acres and related structures located approximately four miles east of downtown Tacoma in the Tideflats industrial area, adjacent to the Blair Waterway, which the Port is re-developing for container terminal use.
The $4 million variation in the sales price is due to that amount being placed in escrow for future expenditures to meet certain regulatory requirements related to preparing the real estate for future use. Any portion of the escrowed funds not required to meet such requirements will be paid to Kaiser as additional proceeds of the sale.
Under the terms of the transaction, the Port of Tacoma will assume responsibility for any necessary demolition and environmental remediation that may be required as it develops or otherwise maintains the property.
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