By Jon Peterson
Los Angeles-based CBRE Global Investors is in the process of buying the 345,000 square foot 2100 Powell office building in Emeryville for $171 million, or $495 per square foot, according to sources to with direct knowledge of the transaction. This deal has not yet closed.
The seller of one of the largest office buildings in Emeryville is New York City-based Blackstone. 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 was constructed in 2001 and 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.
Blackstone worked with the San Francisco office of Eastdil Secured as the listing agent for the sale. Eastdil has had a history with this property since it also acted as financial advisor to Hines when it sold the property to Blackstone.
Both Blackstone and Eastdil declined to provide comment when contacted regarding this transaction. CBRE Investors also did not respond to a phone call seeking comment for this story.
2100 Powell is considered to be a core to core plus asset primarily because the existing rents in the complex are deemed to be below market rates, and value would be created for the new owner by bringing the rents to market over the next few years.
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.