Recap of The Wakefield Building marks firms’ first venture
Oakland, CA (January 17, 2017) – An affiliate of The Swig Company has sold a 49% interest in The Wakefield Building, located at 426 17th Street in Downtown Oakland, to an affiliate of Stars Investments, a family-owned investment company headquartered in Santiago, Chile. It is the first partnership between the two firms and Stars’ first investment in the San Francisco Bay Area.
In connection with the interest sale, the new joint venture also received a new $10.45 million first mortgage loan secured by the property from JP Morgan Chase Bank.
“We are delighted to be partnering with Stars Investments in The Wakefield Building and look forward to many more successful partnerships between our two firms going forward,” said Tomas Schoenberg, Executive Vice President of Investments for The Swig Company.
The Swig Company purchased the Wakefield Building in December 2014. The 8-story, 56,676 square-foot landmark building is leased to six tenants and Powerhouse (formerly SfunCube), the solar energy incubator affiliated with Oakland-based Sungevity, occupies the top three floors. The building’s proximity to the 19th Street BART Station and uptown’s trendy bars and restaurants, combined with its classic physical characteristics and great open floor plans has allowed the building to achieve some of the highest rents in Downtown Oakland’s creative office market.
“We are very excited to be entering the Oakland market with this investment and partnering with The Swig Company, an organization which we believe shares our values and our long-term approach towards real estate investing,” said Oscar Boettiger, Head of Real Estate at Stars Investments.”
Seth Segal and Adam Lasoff of Cushman & Wakefield represented The Swig Company in the interest sale. The HFF team of Brandon Roth, Rob Bova and Bruce Ganong represented the new venture in securing the financing from JP Morgan Chase Bank.
Tony Ratner of Farella Braun + Martell, and Elliott Califfe and Michael Baum of Greenberg Traurig, LLP provided legal representation for the transaction.
About The Swig Company
The Swig Company, LLC is a privately-owned, San Francisco-based real estate operator with a 75+ year history of investment, development, partnership and management of commercial real estate properties in major US markets. Founded by Benjamin Swig, The Swig Company is guided by a long-term investment perspective that has proven adept at stewarding investors safely through multiple market cycles. The company’s vertically-integrated operational platform, which includes investment, asset and property management expertise, uses flexibility, generational thinking and a sensitivity to sustainable practices to stay at the forefront of emerging trends in the commercial real estate industry. For more information, visit: www.swigco.com.
About Stars Investments
Founded in 2009, Stars Investments is the asset management company that manages the financial, private equity and real estate investments of Mr. Felipe Ibañez Scott, a Chilean entrepreneur. Stars Investments’ mandate is to preserve and increase the value of the portfolio through three investment principles; one, a long-term investment horizon, which implies consistency and discipline in portfolio construction and low asset turnover; two, conservative risk-profile and leverage levels; and three, risk diversification. As of June 2016, the real estate portfolio included holdings in Denver, Boston, Seattle, Washington D.C., New York, London, and Manchester.