The new lease agreement is for a 10-year term and accounts for more than half of the rentable sf in the 17-story class A office building. There were no third-party brokers involved in the transaction, according to Brandywine.
The negotiated lease rate was not released by the parties involved and not otherwise immediately available. Last fall, prior to the merger, Prentiss Properties reported that expiring rents in the building were in the mid-teens per sf per year while new leasing activity was in the high teens.
When Brandywine acquired Prentiss Properties earlier this year in a $3.3-billion transaction, it inherited a dominant position in Oakland's Lake Merritt submarket. Prentiss owns four buildings there totaling about 1.4 million sf that is currently all but full, with just 40,000 sf of vacancy.
In a September interview with GlobeSt.com, Brandywine SVP and Northern California managing director Daniel Cushing told GlobeSt.com that the tight situation in its Oakland portfolio--2101 Webster, 1901 Harrison, 1333 Broadway, One Kaiser Plaza--has Brandywine following through on a speculative project Prentiss broke ground for in late 2005. The 215,000-sf office building is rising at 2150 Franklin St., which is a piece of land that came with its acquisition of 2101 Webster. It will be complete in about 12 months.
"We did it for a handful of reasons, not the least of which is that we are struggling to meet the expansion needs of our existing tenants," said Cushing, who prior to Brandywine was in charge of Northern California for Prentiss.
Over Labor Day weekend, Brandywine relocated and expanded its local office to 9,000 sf at 2101 Webster. The move filled up some vacant space there while freeing up ground-level space at 1901 Harrison that will be repositioned as retail space, Cushing says.
Looking further out, Brandywine has two other development sites in Oakland that are capable of supporting a combined 900,000 sf of built space. Both are near existing Brandywine properties. One of the sites is near its 1901 Harrison building and the other is near One Kaiser Plaza, also known as the Ordway. "They are not quite entitled or planned," Cushing said. "They are maybe mixed-use opportunities."
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