1150 Clay's key feature will be a large rooftop deck offering expansive Bay and city views.
OAKLAND, CA—Investors are eying a significant rental arbitrage in the East Bay, targeting multifamily properties in East Oakland, Berkeley and the Fremont/Hayward corridor, according to a report by Marcus & Millichap. While the rent spread between East Bay assets and the broader Bay Area continues to contract rapidly, the exceptional valuation gap should encourage further capital flows into the metro.
And, adding more properties to the mix provides a further opportunity for these would-be investors. One current example is 1150 Clay, a 16-story 288-unit multifamily building located between 11th and 12th streets in downtown.
CIM Group has topped out construction on the building, which is anticipated to be completed in spring 2020. It is considered to be an integral piece of the evolving downtown fabric designed to enrich the neighborhood with new residences, community-serving retail and public spaces.
"With 1150 Clay, CIM is helping to serve the needs for new housing in a transforming neighborhood, centrally located near transportation," said Avi Shemesh, co-founder and principal of CIM Group. "Also in Oakland, CIM is under construction of apartments at Jack London Square, adding residences to the mixed-use environment where residents can enjoy the retail, restaurants and entertainment offerings fronting San Francisco Bay. Together, CIM's two developments will deliver approximately 600 new residences to Oakland next year."
CIM recently topped out construction of the eight-story 333-unit apartment building at 40 Harrison in Jack London Square where the company owns multiple properties across 12 acres of this bayfront mixed-use site. It is also completing the construction of Uptown Station, a redevelopment of a former department store into a 355,000-square-foot office building leased by Square in the Uptown district of downtown Oakland. CIM has been involved in the Greater Bay Area since 2001, with CIM's first Oakland acquisition taking place in 2007.
"CIM has owned and operated properties in Oakland for more than 10 years, delivering new office, residential and retail to the community," Shemesh tells GlobeSt.com. "With 1150 Clay, we are adding residential and retail uses to a thriving downtown neighborhood."
1150 Clay will offer residences ranging from studio to three-bedroom floorplans. A key feature for residents will be a large rooftop deck offering expansive Bay and city views. The deck will have ample lounge areas with firepits, a heated and partially covered dining area with barbecues, a fitness center, lobby coffee bar, conference rooms, shared working spaces and bicycle storage.
1150 Clay will also bring approximately 4,000 square feet of street-level retail space featuring 20-foot ceilings and a large outdoor patio as well as an adjacent 17,000-square-foot public plaza fronting 12th Street. The retail and plaza will offer greater pedestrian connectivity and experiences including the plaza's half-basketball court along with locally sourced specialty food and beverage retailers operating from shipping containers set within the park-like setting.
The property has a central location in a walkable neighborhood near many Oakland office buildings as well as transportation. 1150 Clay is immediately adjacent to the 12th Street BART station and is also convenient to the area's major regional transportation corridors including Interstate 880 and Interstate 80 connecting to San Francisco and Berkeley, and Interstate 580 and Highway 24 to the East Bay.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
