Latham Square in Oakland Hits the Market, Could Sell for $60MM

Latham Square Building, Oakland, NKF Capital Markets, Bentall Kennedy, Ridge Capital Investors, Contrarian Capital Management, Telegraph Avenue

By Jon Peterson

Bentall Kennedy has placed on the market for sale the 116,056 square foot Latham Square Building in Oakland. The sales price for the office building could be for as much as $60 million, or as much as $517 per square foot, as stated by sources with direct knowledge of the transaction. The sale of this property would be the third one in this cycle, which started in 2014 when the building was bought at an auction for $12 million.

Bentall Kennedy has picked the San Francisco office NKF Capital Markets to be the listing agent on the sale. The main people working on this transaction are Kyle Kovac and Mike Taquino, both are executive managing directors with the firm. Both Bentall Kennedy and NKF declined to comment when contacted for this story.

Bentall Kennedy has owned the property since October of 2016. The real estate manager had paid $47 million for the property, or $404 per square foot. It was acquired on an all-cash basis at the time, and the seller was a joint venture between San Francisco-based Ridge Capital Investors and Greenwich, Conn.-based Contrarian Capital Management. The two had owned the property since 2014 when they paid $12 million for the property in an auction.

“The unique U-shaped floor-plates at Latham Square capture the views and bring in the natural air and light though the operable windows. The retail areas on the ground floor will be activated to complement the recent $9.5 million renovation of the public space at Telegraph Avenue and Broadway adjacent to the building,” said Matt Henning, of Bentall Kennedy in a prepared statement at the time his company purchased the asset.

The expectation is that many different types of capital sources will be interested in buying the asset, although Oakland now has roughly 13 percent of the entire market up for sale. Earlier this month, Los Angeles-based CIM had placed on the market five of its Oakland properties that total over 1.5 million square feet of space. This announcement was followed by UBS, which placed on the market its property on 1221 Broadway, a building that is over 520,000 square feet, and TMG Partners’ announcement in April of 2018 to market its 316,000 square foot building on 1330 Broadway. A smaller property on 401 Grand Avenue, which measures 38,988 square feet, is also for sale by Oakland-based Murray Hill Properties. That brings the total property on the market for sale in Oakland to over 2.3 million square feet, which is over 13 percent of the entire 17.2 million square foot Class A and B office market of Oakland.

Latham Square is located at 1611 Telegraph Avenue in Oakland. The property is considered to be a Class A historic building. The improvements made to the property over the past few years included activating the retail areas on the ground floor. When Bentall Kennedy had bought the property, the building was 85 percent leased.