OAKLAND, CA—“Oakland's time has clearly arrived as an attractive investment market for institutional capital that is seeking core-plus and value-add returns at a cost basis substantially less than San Francisco.” That is according to CBRE's Brad Zampa, when talking about a recent $17.2 million bridge financing he worked on here at Latham Square.
The 15-story 118,198-square-foot building is owned by Contrarian Capital Management and San Francisco-based Ridge Capital Investors. CBRE arranged the five-year, non-recourse, floating-rate, interest-only financing at a competitive spread priced over 30-day LIBOR.
The financing was provided by a national private debt fund with an extensive track record for lending in the Bay Area. In addition to Zampa, Michael Walker and Megan Woodring of CBRE's San Francisco office also helped to arrange the financing.
Located at 1611 Telegraph Ave., the 15-story brick office complex features a top floor penthouse, a two-story subterranean parking garage, and is situated one block from both the 12th and 19th Street BART stations—providing a key link to the Bay Area's mass-transit. With its open floor plates, historic appeal, exposed brick finishes and high ceilings, Latham Square will lend itself well to both technology tenants and finance, insurance and real estate tenants looking for creative office space.
Latham Square also boasts a variety of amenities including excellent restaurants, the renowned music venue, Fox Theater and Forest City's new residential development, “The Uptown.”
Latham Square is located at the southern boundary of the up-and-coming Uptown District. The Uptown District has organically grown into the entertainment hub of Oakland. Oakland—located 12 miles east of San Francisco—has continued to see a sudden upswing in tenants' desire for creative office space as tenants continue to be priced out of San Francisco and Silicon Valley.
As GlobeSt.com reported last year, the JV acquired the property for $12 million from a lender that had foreclosed on it in 2012.
Ridge principal Thomas Daniel previously told GlobeSt.com that “Asking rents in Oakland have begun to show positive momentum this year and with continued strong demand from tenants looking for best-in-class creative space. We believe Latham Square provides an opportunity to create a work environment for today's modern tenants and capture significant growth within the market.”
He added that “Latham Square is a classic beauty that will be restored to bring out its historic charm, while also offering some of the most attractive creative working environments for tenants that are compelled by the vibrancy of the Oakland Uptown live/work atmosphere.”
And in another Oakland deal this week, Coasters Co. of America, a Santa Fe Springs-based company that is one of the leading furniture importers and distributors of fine furniture in the US and Mexico, has signed a 10-year lease for a 232,881-square-foot space in a class A warehouse building located at 8350 Pardee Dr. in Oakland, CA.
Tim Cronin, SIOR, of Lee & Associates Commerce, joined Craig Hagglund, SIOR, of Lee & Associates Oakland, in the representation of Coasters Company of America. “The building was recently constructed, and is the only class “A” warehouse built in the Oakland region in nearly 20 years.
Coasters is expected to occupy the building when the tenant improvements are completed in June 2015,” said Cronin. “Its modern design, function and close proximity to the Port of Oakland made this building the perfect fit for Coasters”
A number of sustainable features were incorporated into the building design and Goodman Logistics Center Oakland is expected to gain a Silver LEED Certification from the US Green Building Council.The facility includes 32-foot clear height, ESFR sprinklers, energy efficient lighting, concrete truck courts, ample car and truck parking.
The developer and landlord, Goodman Birtcher, was represented by Jason Ovadia of JLL in Walnut Creek.
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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.
