Harvest Properties & KKR to Buy 180 Grand in Oakland for $119.25MM

Ellis Partners, San Francisco, CBRE Global Investors, 180 Grand, Oakland, Artemis Real Estate Partners, New York State Common Retirement Fund

By Jon Peterson

Emeryville-based Harvest Properties and New York City-based KKR Partners have come together and plan to be the buyer of the 277,030 square foot 180 Grand office building in Oakland. This partnership has put down a non-refundable deposit on the asset. The purchase price is expected to be at $119.25 million, according to multiple sources that track the sale of major office buildings in Oakland.

The deal is not expected to close for at least another two to three weeks. The seller of the properties is Ellis Partners. The listing agent on the sale is Russell Ingrum, a vice chairman of institutional properties with CBRE in its San Francisco office. Both companies declined to comment on the sales price when contacted for this story.

Ellis had owned the property since December of 2014 when it paid $61.3 million to acquire the property, according to an email from CalSTRS at the time. Ellis had made some capital improvements to the property since its purchase of the asset. This included investing additional dollars to improve the building’s exterior, lobby and common areas. The property is now 96 percent occupied. It was first constructed in 1981.

Ellis had owned the asset in a joint venture with Artemis Real Estate Partners. The capital used for this transaction came from the New York State Common Retirement Fund, which has an existing relationship with Ellis where the pension fund considers the realty firm to be an emerging manager.

When the transaction on 180 Grand closes, it will represent KKR’s first real estate investment transaction in the San Francisco Bay Area, according to sources familiar with the company’s investment activities.

KKR typically invests in real estate through its commingled funds. It’s now out in the market with KKR Real Estate Partners Americas II commingled fund. This investment fund will be putting capital to work with a variety of property types and markets around the United States.

West Coast Commercial Real Estate News