By Jon Peterson
As Oakland sees continued interest from institutional and local investors, San Diego-based HP Investors made the decision to place on the market for sale the 26,613 square foot mixed-use property in Oakland located at 1618 Franklin Street. Pricing guidance on the transaction was not available at this time.
HP Investors has been the owner of the property for more than three years. The real estate firm had acquired the property for $9.4 million in August 2018 in partnership with Lockehouse Realty Group, according to public records and a statement on the company’s website. The property owner did not respond to a phone call seeking comment for this story. The listing agent on the sale is the San Francisco office of JLL. Those working on the transaction include Erik Hanson and David Dokko, both senior directors, along with Rob Hielscher, senior managing director. JLL declined to comment when contacted for this story.
1618 Franklin is a mixed-use asset located in the Uptown submarket of Oakland. The only part of the property that is not leased is the below-grade storage that totals 3,162 square feet. The creative office, retail and medical office portions of the property are now fully leased with an average remaining lease term of over 5 years. The rental rates in this space are nearly at market levels.
There are three main tenants in the property. The largest of the three is NewSchools Venture Fund, a non-profit venture philanthropy fund. It takes up 58 percent of the building. As of the beginning of 2022, it will have 3.8 years remaining on its lease. Western Dental occupies 18 percent of the property with a lease that does not expire until November of 2031. The retail tenant in the asset is SobreMesa, an Afro-Latino Kitchen. It has a lease running through April of 2025.
1618 Franklin has a very strong location from a transportation perspective. It is situated just two blocks from the 19th Street BART station. It has been given a 100 walk score due to the fact that daily errands can be accomplished without the need of a car.
The mixed-use property is located within a mile of an area seeing a great deal of new apartment development. This includes 2450 Valdez where The Hanover Company built a 225-unit project, and Lennar constructed a 254-unit development located at 447 17th Street.