The 12-year, $18-million deal pushes occupancy in the 487,000-sf office building over 50% for the first time since its completion last year. The building is half owned by the State Teachers Retirement System of Ohio and half owned by a fund that includes San Francisco-based Shorenstein Co., which also manages the building.
Matson, a domestic ocean carrier, is relocating from 333 Market Street in San Francisco, a building in which Shorenstein also has an ownership interest. Matson's new lease at 555 City Center commences January 2004. It will occupy all of the 7th and 8th floors at 555 City Center and a piece of the 9th floor.
Shorenstein SVP and Regional Leasing Manager Chris Curtis tells GlobeSt.com that Matson had been shopping in the market for a year and that most of the other shipping companies had already relocated from San Francisco to Oakland. "They will be able to see their terminal from their new offices and many of their people live in the East Bay," Curtis tells GlobeSt.com.
Matson president and CEO Jim Andrasick says the decision to move was based on a number of factors, including cost, proximity to employees and easy access from a number of transportation options. "With the Port of Oakland as Northern California's major load port, maritime companies such as APL and Crowley Maritime have made Oakland their headquarters office for decades," says Andrasick "For Matson, the new 555 City Center building allows the company to modernize its headquarters office space at a reasonable cost."
Founded in 1882, Matson Navigation has been Hawaii's premier ocean carrier for over a century. The company is a wholly owned subsidiary of publicly traded Alexander & Baldwin Inc. of Honolulu.
Bill Walsh and Nick Slonek of CB Richard Ellis' San Francisco office handled the lease transaction for Matson; John Dolby, vice president of leasing for Oakland City Center, represented Shorenstein Realty Services.
In other leasing activity at 555 City Center, the Federal Drug Administration's Office of Criminal Investigation has signed a lease for 5,616 sf on the 2nd floor of the building. The 10-year lease commences July 1, 2003. The Government Services Administration handled the lease transaction for the Federal Drug Administration; John Dolby, vice president of leasing for Oakland City Center, represented Shorenstein Realty Services.
Curtis tells GlobeSt.com that Shorenstein's 1-million-sf City Center Portfolio is now 82% leased, and 96% leased when 555 City Center is taken out of the equation.
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