Swig and Rockpoint Consider Options for Selling or Recapping ~1MM SQFT 300 Lakeside Drive in Oakland

300 Lakeside Kaiser Center Oakland KKR San Francisco TMG Partners Swig Company Rockpoint Group Eastdil Secured Gensler

By Jon Peterson

The Swig Co. and The Rockpoint Group are considering all options for its future ownership together of the nearly one million square foot asset at 300 Lakeside Drive in Oakland, formerly known as the Kaiser Center.

“Following the completion of a major renovation and after securing updated entitlements that further enhance 300 Lakeside’s appeal as a highly desirable transit-focused urban campus on Oakland’s Lake Merritt, ownership is exploring all options for this signature asset and has engaged Eastdil Secured to assess investor interest. 300 Lakeside is one of a very few Bay Area locations where a large tenant can access near-term, large block creative space as well as the long-term ability to grow in one of the Bay Area’s most dynamic and accessible corporate locations,” said the two current property owners in a prepared statement.

The possible options for the asset would be to sell the property. A potential price point on the sale would be around $500 million, according to an industry source that tracks the sale of major office buildings in the East Bay. Another possible move would be to bring in a new capital source to the property for a recapitalization.

Swig and Rockpoint have owned the property together since 2005. They acquired the property for $200 million at that time, according to published reports.

The property as it stands now is 98 percent leased. This will be changing over the next several years. The current tenants in the building that occupy 70 percent of the space will be leaving between 2021 and 2024. This includes the main office of BART, which will be moving to a new space at 2150 Webster Street. The other two tenants leaving are the University of California Office of the President and Kaiser Permanente.

300 Lakeside could also become a much bigger property in the future. The current owners have proposed two additional towers to be developed on the property for an additional 1.3 million square feet.

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