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Brandywine, CIM Close $412M Oakland Portfolio Deal

SAN FRANCISCO-Brandywine Realty Trust sells its 1.7 million-sf, five-property office portfolio in Oakland to an affiliate of CIM Group.

By Brian K. Miller | Updated on October 08, 2008

SAN FRANCISCO-Brandywine Realty Trust said Wednesday it has completed the sale of its 1.7 million-sf, five-property office portfolio in Oakland to an affiliate of CIM Group, which says it will be moving its Bay Area office to Oakland next year from Downtown San Francisco. The sale was first announced in July . The buildings are located in the Lake Merritt and City Center districts. The purchase price was $412.5 million.

The five properties are One Kaiser Plaza (530,000 sf; 28 stories; known as Ordway), 1901 Harrison Street (272,000 sf; 16 stories), 1333 Broadway (238,000 sf; 10 stories; above BART station), 2101 Webster Street (475,000 sf; 20 stories) and 2100 Franklin Street (215,000 sf; nine stories; LEED-Gold). The first four properties have a combined occupancy of 89.3% while the fifth property is a $78.5-million ground-up development that was completed this time last year but remains vacant. An affiliate of Brandywine will manage and lease the five properties for an initial one-year period following the closing.

The purchase price included CIM’s assumption of existing mortgage loans on three of the leased properties totaling $95.3 million, and a $40-million, interest-free loan secured by the first mortgage on 2100 Franklin and 2101 Webster that comes due Aug. 2, 2010. In addition, CIM Group was granted a 15-year option to purchase a land parcel adjacent to One Kaiser Plaza slated for the 650,000-sf Two Kaiser Plaza office building, and has committed to lease to CIM 150 parking spaces on that same parcel for tenants of the building.

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