By Jon Peterson
San Francisco-based TMG Partners has put up for sale the 316,000 square foot 1330 Broadway office building in Oakland, as stated by multiple sources familiar with the asset. The expectation is that the property could be sold for somewhere in the neighborhood of $550 per square foot.
TMG has hired the San Francisco office of Eastdil Secured to be the listing agent on the sale. Eastdil did not respond to emails requesting comment for this story. TMG Partners couldn’t be reached for comment. According to industry experts, it’s common for developers to not comment on transactions until they’ve closed
TMG has owned 1330 Broadway since November of 2015 when it paid $80 million, or just around $253 per square foot for the property, according to public records. It bought the property from Zimmerman Investments who had owned the building since 1991.
The property was purchased through one of TMG’s separate account funds, which the company raised a few years ago. “This is out first transaction that we have completed with our $150 million separate account that we announced in October [of 2015]. It’s a perfect illustration as to the kinds of investments we would like to make with this relationship,” said Matt Field, chief investment officer for TMG at the time the purchase was announced.
In some ways, the building exemplifies the transformation through which the East Bay city has undergone in the last few years. Built in 1958, 1330 Broadway has been a fixture in downtown Oakland’s skyline for almost 60 years. It is centrally located in downtown Oakland’s central business district and is directly across from the 12th Street Oakland BART Station. The I-980 and I-880 freeways are also just blocks away, making the building easily accessible to tenants traveling in and out of Oakland by car. Oakland’s 12th Street BART station is practically across the street, and the building is in close proximity to numerous restaurants, parks and amenities.
The potential sales price on the property would come in well below its replacement cost. According to sources that currently invest in or develop office buildings in Oakland, replacement cost for office assets in Oakland similar to this one are now around $700 per square foot.
TMG has been putting the 18-story 1330 Broadway property through a renovation. The work on the property has included a new main lobby and building entrance, new common area finishes, major elevator and building systems’ modernization, refurbished conference facilities, enhanced bike parking and commuter showers.
The office building is 85 percent leased. Following the updates and renovations, TMG was able to sign several new leases for the property during 2017. In November of last year, Clovis Oncology signed a 10-year lease for 32,000 square feet. In June of 2017, Arup agreed to lease 16,036 square feet on a 10-year agreement. Oracle also signed a lease for 16,000 square feet for six years in April of last year.