OAKLAND, CA-CB Richard Ellis Investors has closed on its purchased of a portfolio of five office properties and a parking garage located within Oakland City Center. The purchase was made on behalf of the CBRE Strategic Partners US Value 5 fund, a commingled private equity real estate fund raised from institutional investors in the United States, Europe and the Middle East.
Due to the company’s confidentiality agreement with the seller, Shorenstein Properties LLC, the firm tells GlobeSt.com that it is not at liberty to give the purchase price at this time. Shorenstein also would not confirm the price. However, an unidentified industry source confirms that the purchase price was $360 million or $232 per square foot. The 1.6-million-square-foot portfolio is 91% leased.
Shorenstein had owned the property for 14 years and it was the last remaining asset in their third investment fund—also formed in 1996. A Shorenstein source tells GlobeSt.com that the company “had added value to the asset through leasing activity and various operational efficiencies over the years, also adding 400,000-plus square feet of class A office in 2002 with the construction of 555 12th St.”
The source continues that “Oakland has become a much more robust institutional real estate investment market since Shorenstein acquired the asset—as evidenced by a global company like CBRE Investors entering, and it was considered to be an appropriate time to sell.”
CB Richard Ellis Investors is planning a capital improvement campaign that includes “the firm’s signature 5-Star Worldwide service program designed to provide services and amenities to further enhance tenant satisfaction. The 5-Star program combines the attributes of a concierge service, building conference center and information conduit,” according to a prepared statement.
The portfolio consists of “highly amenitized assets in an excellent location in the heart of downtown Oakland adjacent to the central Bay Area Rapid Transit station. The properties include: 1111 Broadway; 555 12th St.; 1300 Clay St.; 505 14th St.; City Square; and City Center Garage.
1111 Broadway and 555 12th St. are LEED Gold-certified trophy-quality towers totaling more than one million square feet and featuring bay views, underground parking and ground floor retail space. 1300 Clay St., 505 14th St., and City Square offer a total of approximately 460,000 square feet of class-A office space and 55,000 square feet of retail space. The parking garage features 1,150 spaces.
“We are thrilled to acquire this landmark project,” says Phil Hench, senior managing director of CBRE Strategic Partners US. “While the entire portfolio is high quality, 555 12th St. and 1111 Broadway represent the best buildings in the East Bay. This diversified portfolio in the heart of Oakland’s CBD benefits from spectacular views, tremendous access to major transportation corridors and BART, and proximity to newly developed residential properties.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
