The Small Space Marketplace

List Your Space

Find Space

Home About Us Executive Subscriber Membership RENTV Conferences Newsletter Contact Us Advertise
March 29, 2024
 Search RENTV
   Go!
 The REview
 News
News Home Page
Southern California
Northern California
Pacific Northwest
Texas/Southwest
Retail
Multifamily
Financing
Prop. Management
Archives
Press Releases
 R. E. Marketplace
Service Providers
JobWorks
Property Spotlight
 RENTV  Conferences
Subscriber Login:
  
Email      
    Go!
Password      
Forgot Password?



HOME PAGE NEWS
Printer-friendly Version   Email an Associate
TMG Partners and KKR Complete $255 Mil Bay Area Office Buy

12/05/18

TMG Partners and KKR have teamed up in major Bay Area office acquisition. The venture has purchased 1221 City Center, a 24-story, 522k sf tower in Downtown Oakland. The Class A tower is located at 1221 Broadway, at the intersection with 12th St in the heart of the city’s downtown area.

The high-rise was sold by Swiss-based UBS AG. Although a price was not given out by the parties involved, industry sources report a deal value of around $255 mil, or $488/sf.

1221 City Center is 99% leased. Existing tenants include Clorox, Union Bank, Stanford Health Care, Wells Fargo Bank and Parsons Brinkerhoff. The building features panoramic Oakland skyline and Bay views, onsite retail amenities and ample parking, as well as bike lockers and showers. It is one of three buildings in the Bay Area that enjoy access to BART, via a direct entrance to the 12th Street Station through the building lobby.

The property has undergone more than $24 mil of capital improvements over the past five years including a significant lobby renovation featuring modern marble and wood paneling. It features 360-degree views that span from the Bay Bridge and the San Francisco skyline to the Oakland Hills, LEED Platinum rating, extensive glass window lines, large floorplates and extensive on-site amenities that include an expansive outdoor plaza featuring a variety of shops, eateries, and lifestyle amenities.

The purchase is the second transaction by TMG and KKR in Oakland this year, following the purchase of 1330 Broadway in Oakland in July. KKR is making the investment through its Real Estate Partners Americas II Fund.

“We believe Oakland has attractive long-term secular growth trends driven by its accessibility to transit, a growing retail amenity base, and a meaningful amount of residential development,” said Justin Pattner, Head of Real Estate Equity in the Americas at KKR. “1221 City Center is an iconic property in the Oakland skyline, and we look forward to the next phase of its business plan.”

The purchase of 1221 City Center represents TMG’s fourth transaction in Oakland. 1330 Broadway was TMG’s first Oakland redevelopment. Last year, the firm also acquired 2201 Broadway, an eight-story 198k sf office building in Uptown Oakland. Currently, the firm is also entitling a 750k sf office and retail tower at the intersection of Grand Ave and Telegraph Ave

Newmark Knight Frank (NKF) Vice Chairman Steven Golubchik, Senior Managing Director Tyler Meyerdirk and David Hosler represented the seller. The buyer, KKR and TMG Partners, worked with NKF Vice Chairman Ramsey Daya, Senior Managing Director Chris Moritz, and Director Travis Bailey to raise debt for the acquisition.

Oakland’s central business district has the lowest office vacancy rate in the country at approximately 4.9%. This is largely driven by a demand for large blocks of office downtown space and lack of supply. More than 120 tenants leasing more than 2 msf of space have relocated to or expanded in Oakland from San Francisco since 2011.





Return to the Archive page


 


 


 


 
 



Home | About Us | Newsletter | Contact Us | Executive Subscriber Membership | Executive Subscriber Home | Advertise
Southern California | Northern California | Pacific Northwest | Southwest | Retail | Multifamily | Financing | Property Management
Archives | Press Releases | Service Providers | JobWorks | Property Listings

Copyright © 2024 by RENTV, All Rights Reserved
Website designed by Regency Web Services, Inc. and powered by Lightning Media