Sale of down­town Oak­land of­fice tow­ers shows re­newed in­ter­est in city’s core

The Mercury News - - Business + Technology - By Ge­orge Ava­los gava­[email protected] ba­yare­anews­

OAK­LAND >> In a head-spin­ning burst of in­vest­ment, real es­tate en­trepreneurs spent well over $300 mil­lion buy­ing two of­fice tow­ers in down­town Oak­land this week, an in­di­ca­tion of ris­ing in­ter­est in the cen­tral busi­ness dis­trict of the Bay Area’s third-largest city.

The two of­fice com­plexes bought in re­cent days were the 1221 City Cen­ter tower at 1221 Broad­way and the Latham Square Build­ing at 1611 Tele­graph Ave.

The deals hint that down­town Oak­land has cap­tured the fancy of some re­alty in­vestors. The 1221City Cen­ter of­fice tower, left, and the Latham Square build­ing sold for more than $300 mil­lion.

“These buy­ers see down­town Oak­land as the Brook­lyn of San Fran­cisco,” said Aileen Dolby, an ex­ec­u­tive vice pres­i­dent with the Oak­land of­fice of Col­liers In­ter­na­tional, a com­mer­cial

re­alty bro­ker­age. “Rental prices and build­ing prices in Oak­land look rel­a­tively cheap com­pared with San Fran­cisco.”

1221 City Cen­ter was bought for $253.5 mil­lion and Latham Square fetched a price of $61.5 mil­lion, ac­cord­ing to Alameda County prop­erty records.

On Dec. 3, San Fran­cisco-based TMG Part­ners, a big de­vel­oper, and New York City-based KKR, an in­vest­ment firm act­ing through af­fil­i­ate KRE 1221 Broad­way Owner, bought 1221 City Cen­ter, lo­cated at the cor­ner of 12th Street and Broad­way, county files show. The 24-story build­ing to­tals 522,000 square feet.

In a sep­a­rate trans­ac­tion on Dec. 5, San Fran­cis­cobased SSA Real Es­tate Man­age­ment, act­ing through an af­fil­i­ate called Latham Square 1440BP, bought the Latham Square of­fice com-


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