As Oakland’s Broadway corridor continues to garner attention, another asset in the neighborhood was sold earlier in the year to a partnership between HP Investors and LNG Management, according to a second quarter of 2017 East Bay Real Estate Market Review by brokerage firm Kidder Mathews. The building located at 1700 Broadway, a roughly 32,000 square foot, 10-story office building, sold for $13,276,000, or roughly $443 per square foot, in May of 2017.
The property is considered a B class building, and it has a number of medical services tenants in the building. According to the Kidder Mathews report, the building is fully leased, although with a tremendous value add upside. The existing tenants are paying roughly $20 per square foot, which is around 50 percent of the current market rents.
Oakland-based California Capital & Investment Group was the seller of the building.
After reaching historically low vacancies in 2016, the East Bay office real estate market has paused to catch its breath during the first half of this year, finding a better balance between demand and supply, according to the Kidder Mathews report. East Bay office properties reported 324,551 square feet of negative net absorption during the second quarter, and the vacancy rate increased to 7.1 percent in Oakland CBD and 8.8 percent market-wide.
In the quarter, two notable leases occurred on Broadway – WeWork leased 81,452 square feet at 1111 Broadway (floors 2 through 5), while Oracle took 16,088 square feet at 1330 Broadway. The largest contiguous vacant space in Oakland CBD, which reported 136,208 square feet of negative net absorption this quarter, is 72,759 square feet at 1333 Broadway, formerly occupied by AECOM, which is consolidating its Bay Area offices at 300 Lakeside Drive, stated the report.