The entitlements allow for building up to 1.3 million square feet of office space (credit: SIC-Lakeside Drive LLC).
OAKLAND, CA—The city's largest office building, 300 Lakeside, is on the market. While the asking price wasn't disclosed, close-in property pricing suggests 300 Lakeside's price could exceed $600 million or triple Swig's 2005 purchase price.
The owners, Rockpoint and The Swig Company, are exploring all options, which could result in new equity via recapitalization.
The recently updated and secured entitlements allow for building up to 1.3 million square feet of office space (or an office tower plus a residential tower). This is one of the few buildings to offer both relatively immediate large block vacancy as well as development potential.
"Following the completion of a major renovation and after securing updated entitlements that further enhance 300 Lakeside's appeal as a highly desirable transit-focused urban campus on Oakland's Lake Merritt, ownership is exploring all options for this signature asset and has engaged Eastdil Secured to assess investor interest. 300 Lakeside is one of a very few Bay Area locations where a large tenant can access near-term, large block creative space as well as the long-term ability to grow in one of the Bay Area's most dynamic and accessible corporate locations," according to Rockpoint and The Swig Company.
Thee 900,000-square-foot asset includes a roof garden, lake views, parking for 1,300 cars and is half a block from BART.
The 28-story building is 98% leased, but several tenants are planning to move out, allowing a new owner the ability to increase rents. Some 70% of the building will be vacant between 2021 and 2024.
Specifically, BART is headquartered in more than a third of the building and plans to depart by 2021 for 2150 Webster St. The president's office for the University of California and Kaiser Permanente are also vacating 300 Lakeside for new buildings.
The property was built in 1960 as the headquarters of Kaiser Industries, the construction and shipyard magnate. Its healthcare function was the precursor to Kaiser Permanente.
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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.
