KKR & Harvest Properties Put 180 Grand in Oakland up for Sale, Price Could Reach $172MM

KKR, Harvest Properties, Emeryville, Oakland, NKF Capital Markets, San Francisco, Bay Area, Ellis Partners, CalSTRS, AMEC Foster Wheeler, Healthnet of California, Marqeta, Bank of America, Charles Schwab

By Jon Peterson

New York City-based KKR and Emeryville-based Harvest Properties have put up for sale the 278,596 square foot 180 Grand Avenue office building in Oakland. The possible pricing for the property could be around $620 per square foot or $172 million, as stated by multiple sources that track the sale major office buildings in the Oakland market. This next sale would mark a third time this asset had been traded in this market cycle, or since 2014.

The current owners of the property have hired the NKF Capital Markets team in the San Francisco Bay Area to be the listing agent on the sale. Company representatives of NKF did not respond to inquires in time for this story.

180 Grand was the first office building acquisition made by KKR when it purchased the property in June of 2017. The asset was bought for $119.25 million, according to public records, from San Francisco-based Ellis Partners. Ellis had owned the property since December of 2014 when it paid $61.3 million to acquire the building, 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 was first constructed in 1981.

When KKR had bought the property it commented in a prepared statement, “We are excited to be partnering with Harvest and to be making our first investment in Oakland. It’s a market we believe has long-term secular growth trends driven by its accessibility to transit, a growing retail amenity base and a meaningful amount of residential development,” said Justin Pattner, co-head of real estate acquisitions for KKR.

180 Grand is a 15-story office building. When KKR and Harvest acquired the asset, it was 95 percent leased. Some of the tenants in the building at that time included AMEC Foster Wheeler, Healthnet of California, Marqeta, Bank of America and Charles Schwab.

The Oakland office market in general did produce an increase in occupancy during the third quarter. According to industry reports, the vacancy for Class A space in Oakland moved from 4.5 percent to 6.5 percent during the time period.