By Jon Peterson
Oakland-based Bay Area Rapid Transit (BART) is now looking at five different options around the city of Oakland for its future corporate headquarters, according to a document from a recent board meeting by the transportation company. The options include remaining at its current location at 300 Lakeside Drive or moving into one of four different locations. A spokesperson for BART wrote in an email that no final decision has been made at this time.
The reason that BART is looking at a potential move is that there is going to be a change in the rent that the company pays at 300 Lakeside. As stated in a board meeting document, BART has an existing lease at 300 Lakeside where the rental rate is $34 per square foot/per year full service. It will be paying this rent until July 2021. There are two five-year options available for the tenant at 90 percent of fair market value.
Two of the potential options for BART are available to them right away. One is an office building located at 2150 Webster, a 241,490 square foot asset where BART would have the option to purchase the building. This building is owned by a venture between Lane Partners and Walton Street Capital. This partnership acquired the property for $44 million in 2016, according to public records.
The other asset that BART could move into immediately is the office building at 601 12th Street. This property is a 264,418 square foot asset that is owned by a joint venture between Shorenstein and MetLife.
One of the potential longer-term sites for BART would be a west Oakland development located at the intersection of Mandela and 5th Street. This project would not be ready for BART to move into until sometime in 2022 or 2023. The square footage of this location is 253,000 square feet, and it would involve a build-to-suit at the West Oakland BART station. The property is owned by China Harbour Engineering Company & SUDA.
The other, farther out option, is a Lake Merritt development at the intersection of Oak Street and 8th Street. The projection is that this space will not be available until 2025. It totals 250,000 square feet and would also be build-to-suit at the Lake Merritt BART station. Strada Investment Group and EBALDC are the owners of this property.
BART has been working on finding its future headquarters site with JLL. The short-list options are the end result of a request for proposal that was issued in February of this year. Some of the criteria were a property of approximately 250,000 square feet, an option to purchase it and a 10 to 15-year lease term.