$315 million is spent on downtown Oakland office tower shopping spree

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 that were 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.

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 in Oakland, county files
show.

In a separate transaction on Dec. 5, San Francisco-based SSA
Real Estate Management, acting through an affiliate called Latham
Square 1440BP, bought the Latham Square office complex at the
corner of Telegraph Avenue and 16th Street.

Downtown Oakland is gaining widening interest because a spike in
office rents in San Francisco has forced some tenants to defect to
the East Bay, which in turn has made prime office buildings in
Oakland more valuable, observers say.

Source: FS – All – Real Estate News 1
5 million is spent on downtown Oakland office tower shopping spree