Strategic capital improvements and modern upgrades repositioned office building
(EDITOR’S NOTE: According to public documents, the property sold for $33.3 million, or roughly $305 per square foot.)
Emeryville, CA, November 2, 2017 – City Center Realty Partners, LLC (CCRP), a San Francisco-based real estate investor and developer, in a partnership with Angelo, Gordon & Co., announced its sale of The Offices at Public Market, located at 6001 Shellmound Street in Emeryville, to EverWest Real Estate Partners. The eight-story, 109,237-square foot Class A office building is part of the 14.5-acre mixed-use development that comprises 456 residential units and 115,000 square feet of retail anchored by New Seasons Market and the 22,000 square-foot signature Food Hall.
Newmark Knight Frank’s (NKF) Capital Markets team of Steven Golubchik, Grant Lammersen, and Tim Walling represented the sellers Angelo Gordon and CCRP.
CCRP made significant capital improvements to the office building, which was originally built in 1988. Renovations included modernizing the lobbies and common interior areas; upgrading the elevator cabs; and making exterior improvements, including painting the structure, adding a new storefront to the office entries, and installing decorative metal latticework to define the entry. CCRP brought occupancy from 68 to 98 percent leased to tenants comprised of software, law, biotech, and education tenants, among others. The property is surrounded by a myriad of retail and dining options, public transportation, surface and garage parking.
“We’re pleased to have repositioned The Offices at Public Market for a 21st-century work environment, full of creative and innovative firms,” said CCRP President and Co-Founder Mark Stefan. “As CCRP maintains its focus on redeveloping this extensive project, the tenants will benefit from being in the center of a vibrant, amenity-rich, walkable and transit-oriented new neighborhood.”
CCRP’s multi-year transformation of the broader Public Market project progresses on-track. In addition to retail, housing and offices, the redevelopment includes street upgrades, parking structures and complete renovation and expansion of an adjacent city park.
“Demand for office space in the inner East Bay continues to be strong for both tenants and investors,” said Golubchik. “This property provides much of what tenants want in a 24/7 environment and the significant renovations to transform the public areas, food hall and office spaces further position the new owner for success.”
According to NKF’s I-880/I-80 3Q17 Market Report, availability in the I-880/I-80 office market continued to shrink during the third quarter of 2017, as more space was taken off the market despite record-high pricing in the East Bay. This marked the first time in over a year that space was positively absorbed over two consecutive quarters. Asking rents have increased 5.0% since the first quarter and are likely to maintain this trend from such high demand for Class A office properties in the East Bay.
About City Center Realty Partners
City Center Realty Partners, LLC (CCRP) is a San Francisco based real estate investment firm, specializing in the development, redevelopment and acquisition of urban real estate. Nationwide, CCRP has developed and acquired more than $1 billion of retail, office and mixed-use properties.
CCRP oversees a portfolio of real estate in major markets throughout the country, including Minneapolis, Las Vegas, Denver and the San Francisco Bay Area. The company’s most recent acquisition was 220 Post Street, a five-story plus lower level flagship retail building in San Francisco’s Union Square shopping district. For more information visit www.ccrpllc.com.
About Angelo, Gordon & Co.
Angelo, Gordon & Co. is a privately-held registered investment advisor dedicated to alternative investing. The firm was founded in 1988 and currently manages approximately $25 billion.
About Newmark Knight Frank
Newmark Knight Frank (NKF) is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NKF’s strong foundation makes it one of the most trusted names in commercial real estate. NKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, valuation and advisory services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.