By Jon Peterson
New York City-based Blackstone has placed under contract the purchase of the 396,808 square foot Uptown Station office building in Oakland located at 1955 Broadway. The deal is for the property to be acquired for about $405 million, or around $1,020 per square foot, according to sources that are aware of the sale of the property.
Blackstone declined to comment when contacted for this story. The acquisition of the office building has not closed at this time, and when it does, it will be building’s fourth trade since 2014.
The current owner of the building is Los Angeles-based CIM Group, which hired Newmark Knight Frank’s capital markets team based in San Francisco as the listing agent on the transaction. Among those involved in the sale are Vice Chairman Steven Golubchik, Senior Managing Director Tyler Meyerdirk and Associate Director Darren Hollak. Newmark also declined to comment when contacted for this story.
CIM has been the owner of Uptown Station since December 2017. The real estate investment firm had acquired the property for $180 million, or roughly $505 per square foot, according to public records and The Registry’s earlier reporting. The company had acquired the building from Uber, which in 2015 was considering occupying the entire property. Uber spent $123.5 million, or roughly $325 per square foot, in September of 2015 to buy the building from Menlo Park-based Lane Partners and their partner, Chicago-based Walton Street Capital. The two companies purchased the building just a year earlier for $24.2 million, or just over $63 per square foot, and invested another $40 million into the project.
When the property was put up for sale last year, the office building was 94 percent leased. The seven stories of creative office space were all leased to Square Inc. for the next 12 years. The asset also includes one level of retail space. This space has tenants such as the first East Bay location of Shake Shack, Slice House gourmet pizza, One Medical and Red Bay Coffee.
Uptown Station has a strong transient oriented location and is near a significant amount of housing. There is a BART station right in front of the building, and the area is surrounded by nearly 3,000 units of multi-family development.
“With immediate access to a BART station at 19th Street, the building’s historic character, exceptional 78,000-square-foot floorplates on three floors, ample ceiling heights, interior atrium and abundant outdoor deck space, Uptown Station is a rare opportunity and a standout among office properties in the Bay Area for a broad array of large creative office tenants,” said Avi Shemesh, co-founder and Principal, CIM Group in an earlier statement.