Newmark Knight Frank (NKF) has announced the sale of 505 14th Street and 1300 Clay Street, two Class A office buildings totaling 367,357 square feet of space at the heart of Oakland’s City Center.
NKF’s Steven Golubchik, Grant Lammersen, Tim Walling and David Hosler represented the sellers Rubicon Point Partners, a San Francisco-based real estate investment company, and Canyon Partners Real Estate LLC in the sale of the buildings to KBS Capital Advisors for its KBS Strategic Opportunity REIT II portfolio.
505 14th Street is a 172,273-square-foot, 12-story office tower built in 1985. 1300 Clay Street is a 195,084-square-foot, 11-story office tower built in 1990. The office towers are currently 92 percent occupied to a diverse collection of approximately 40 tenants, with a majority of tenants in legal, finance and government. Located above Oakland’s 12th Street BART station, the properties provide direct access to the Bay Area’s most widely utilized public transit system, putting tenants just minutes from downtown San Francisco.
“As Oakland’s urban renaissance continues, the new owner is in an ideal position to bring existing tenants to market rents,” said Golubchik. “Historically, Oakland has been a long-time benefactor of spill-over from tenants priced out of San Francisco, however, Oakland has now stepped out of San Francisco’s shadow. The Class A vacancy rate in Oakland CBD is less than 4%, the lowest CBD office vacancy in the U.S.”
Since 2011, Oakland has benefited from 1.6 million square feet of inbound migration with a majority coming from San Francisco. The average spread between San Francisco rents and Oakland CBD Class A rents over the last 18 years has been approximately 20%. With today’s spread more than 30%, Oakland offers San Francisco users a compelling value proposition, which is fueling an accelerating in-bound migration.
About Newmark Cornish & Carey
A dominant regional real estate force since 1935, Newmark Cornish & Carey has an expansive reach as part of Newmark Knight Frank, one of the world’s leading commercial real estate advisory firms. Regionally, Newmark Cornish & Carey has more than 280 agents in 13 strategically located offices throughout Northern California, creating a powerful platform from which to deliver superior services locally, while upholding its core values of integrity and knowledge. For further information, visit www.newmarkccarey.com.
About Newmark Knight Frank
Newmark Knight Frank (NKF) is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 14,100 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. NKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.