CIM Group Delivers Channel House in Oakland

The CIM Group has completed construction of the Channel House in Oakland, 333-unit apartment complex with ground floor retail. It is located in Jack London Square, a 12-acre entertainment and business hub on Oakland’s waterfront.

“Channel House is constructed on one of three developable parcels that CIM acquired in 2016 that also included a mix of existing retail and office buildings and parking structure with ground floor retail at Jack London Square,” Bethany Chang, managing director of on-site property management at CIM Group, tells GlobeSt.com. “CIM’s long-term vision for our Jack London Square holdings is to enhance it as a mixed-use destination, adding residences, adjusting the retail tenant mix, and bringing programming that attracts and serves residents and visitors. With a significant recreation area along the waterfront, access to public transportation including the Bay Area ferry and the burgeoning neighborhood adjacent to Jack London Square, it is well positioned as an attractive residential option in Oakland.”

The project launched in 2016 when CIM assembled a three-parcel land site, but today, the property is delivering into a challenging market. However, the developer is strategically adjusting its leasing strategy with virtual property tours and other virtual tools to meet the needs of prospective renters during the pandemic. “The on-site leasing office and model unit is open and available by appointment. We have created a self-guided tour along with a virtual tour of the model and an interactive map to view different unit floor plans and where each unit is positioned within the building,” says Chang. “Channel House benefits from the offerings of Jack London Square and the surrounding neighborhood.”

While the leasing strategy has shifted, CIM hasn’t made any changes to pro forma rents or concession packages yet, but that isn’t out of the question. Even if that happens, the property is still a strong investment. “We opened understanding the market variables driven by the pandemic, but like most property owners that may make concessions or allowances in the near-term, our long-term view is that Channel House is a desirable option in an irreplaceable location that gives it a competitive advantage,” says Chang. “We are already seeing some movement in the market as businesses are allowed to open or increase capacity and vaccines are more plentiful, which creates more confidence in the economy and for individuals that may have been waiting before making lifestyle decisions.”

Overall, CIM continues to have an optimistic outlook on the Oakland market, despite the dislocation this year. “CIM believes that the attributes that have attracted businesses and residents to metropolitan areas, such as Oakland, remain viable factors,” says Chang. “Oakland is a hub for arts and culture, with walkable neighborhoods and public transportation, and a central location that allows for easy connections with friends and business associates. These are features that set Oakland apart from conventional suburban environments.”