Rubicon Point Partners In Negotiations to Buy Two Oakland Buildings for $115MM

CalPERS, San Francisco, Bay Area, Rubicon Point Partners, Sack Properties, AGI Capital, Oakland, TMG Partners, Resmark Companies, Los Angeles

In another transaction that tests the market in the East Bay, San Francisco-based Rubicon Point Partners is planning to make a move that reaffirms Oakland’s place in the Bay Area. As it was reported by the San Francisco Business Times, the investment firm is in contract to purchase two buildings at 505 14th Street and 1300 Clay Street from San Francisco-based Strada Investment Group and Angelo Gordon for $115 million, or roughly $313 per square foot. 505 14th Street is approximately 172,000 square feet and 1300 Clay Street is around 195,000 square feet.

The seller purchased the assets in 2013 and paid $179 per square foot, or $65.7 million.

When The Registry reported this sale in 2014, Strada stated on its Web site that its properties were 90 percent leased at closing. It identified significant opportunities to credit value through operational efficiencies, below market rents and an increasing volume of San Francisco spillover tenants in search of lower occupancy costs. million.

Strada bought the property in a venture with New York City-based Angelo Gordon & Co. This investment manager has a regional office in San Francisco at 101 California Street. It made an investment in the property on behalf of its commingled fund, Angelo Gordon Core Plus Fund III.

Rubicon Point Partners purchased the assets with the help of it financial partner, Canyon Capital Advisors. Rubicon is one of the investors in CalPERS’ emerging manager program, and Canyon oversees this program for CalPERS.

Both assets are part of the City Center complex in Oakland. According to the property information, 505 14th Street has 5 suites available for rent, averaging roughy 2,700 square feet for a total of 13,500 feet. It is currently over 98 percent full. 1300 Clay is 97 percent full with only four suites available for rent that range from 1,800 square feet to nearly 12,000 square feet.