Blackstone Places Office Building in Emeryville for Sale, Could Fetch $170MM

By Jon Peterson

New York City-based Blackstone, through its office building platform with Chicago-based Equity Office, has placed on the market for sale the 345,000 square foot 2100 Powell office building in Emeryville. The sales price on this asset could come in at $170 million or $492 per square foot, as stated by sources familiar with the property.

Blackstone did not respond to phone calls or emails in time for this story. The seller had hired the San Francisco office of Eastdil Secured as the listing agent on the sale. Eastdil declined to comment when contacted for this story.

The property, which is located just off of Highway I-580 overlooking the San Francisco Bay, is perched on a small piece of land that defines the eastern shore of the bay. The property, which was constructed in 2001 was sold to Blackstone in November of 2016 for $122 million, according to public documents. Hines had sold this property as part of a $1.162 billion disposition that included seven West Coast office assets. Blackstone had purchased the property for its Blackstone Real Estate Partners VIII fund.

Eastdil Secured had also acted as financial advisor to Hines on this transaction and Robert A. Stanger & Co., Inc. provided certain financial advisory services to the board of directors in connection with the transaction.

The potential buyers of the property today will likely be drawn to the asset as either a core to core plus investment opportunity. The core component would be that the property is currently 98 percent occupied. The core plus aspect would be that the existing rents in the property are below market and additional value could be created by bring rents up to market levels.

2100 Powell is one of the largest office buildings in the Emeryville market. The asset was first developed in 2001, and it has 16 stories. Some of the tenants in the property include MedAmerica, Art.com, Avast, RelayHealth and NMI Holdings, as stated on the building’s web site. The property is served by Emery Go Round, a complimentary shuttle linking 2100 Powell directly to BART, Amtrak and the Transbay Bus Service.

West Coast Commercial Real Estate News