A partnership of Shorenstein Properties and the State Teachers Retirement System of Ohio sold six downtown Oakland real estate assets for approximately $360 million to CB Richard Ellis Investors. The deal was the East Bay’s largest this year.
The sale, on June 30, included five office properties and a parking garage within Oakland City Center. They were acquired on behalf of the CBRE Strategic Partners U.S. Value 5 fund, comprised of institutional investors from the United States, Europe and the Middle East.
“This diversified portfolio benefits from spectacular views, tremendous access to major transportation corridors and (the Bay Area Rapid Transit system), and proximity to newly developed residential properties,” said Phil Hench, senior managing director of CBRE Strategic Partners U.S., in a statement.
The Los Angeles-based global real estate investment management firm is planning to implement its five-star worldwide service program.
CBRE plans to install a concierge service, building conference center and information services at the 1.6 million sq. ft. portfolio, which is 91% leased.
Located adjacent to the central BART station, the properties include two LEED Gold-certified office towers, 1111 Broadway and 555 12th Street, consisting of more than 1 million sq. ft. The other four assets round out the portfolio with 460,000 sq. ft. of Class-A office space, 55,000 sq. ft. of retail space and 1,150 parking spaces.
Shorenstein purchased the Oakland City Center for $118 million in 1996 after the developer went bankrupt. The State Teachers Retirement System of Ohio, which initiated the sale to CBRE, entered the picture in 1998 after it purchased a 50% stake in the portfolio.