TMG Selected As Buyer of Oakland’s Kaiser Center; Negotiating $475MM Deal

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

By Vladimir Bosanac

Following another Oakland acquisition mega-deal, San Francisco-based TMG Partners has been selected by The Swig Company as the buyer of one of Oakland’s most iconic structures, 300 Lakeside (the former Kaiser Center), a nearly one million square foot property that Swig has owned since 2005. The groups will now commence negotiation on the final details of the sale, which at the moment has been pegged at $475 million, according to published reports and people with knowledge of the transaction.

Both TMG and Swig declined to comment when contacted for this story.

Located at 300 Lakeside Drive in Oakland’s Uptown District, Kaiser Center comprises a 28-story, approximately 845,000 square foot Class A office tower plus two low-rise retail/office buildings totaling approximately 130,000 square feet, including a new, three-level co-working facility. The tower features a unique mid-century modern design, with 29,000 square foot floor plates, high ceilings and unobstructed 360-degree views from nearly every floor in the building, including vistas of San Francisco Bay, the city and Lake Merritt, according to an earlier statement from Swig.

The 1,339-stall parking garage features an extensively landscaped, 3.5-acre rooftop garden that is a unique amenity for office users and the surrounding area. Situated on seven acres, Kaiser Center is considered one of the Bay Area’s preeminent urban campuses and is just 1.5 blocks from the 19th Street BART station, providing excellent public transit access.

The main lobby of the tower has been renovated recently by a design team from Gensler, led by principal Matin Zargari.

San Francisco-based Swig had owned the property since 2005, when it acquired the asset with GMAC Commercial Holdings for around $190 million, according to published reports. Over the years, Swig and its capital partners, who have changed over time, were able to procure entitlements for about one million square feet more. This would enable the new owner to expand the property significantly.

TMG has been an active player in the Oakland commercial real estate market, and it is currently working on developing an 875,000 square-foot, 28-story Telegraph Tower located at 2201 Broadway. The building, designed by Solomon Cordwell Buenz Architects, offers up to 37,000 square-foot floor plates with high ceilings and 11 ½ foot tall vision glass throughout. The tower features three outdoor terraces and 33 balconies totaling 30,000 square feet of outdoor space highlighted by an expansive 9,200-square-foot rooftop terrace and large private outdoor terraces on the sixth and eighteenth floors.

The deal comes on the heels of another +$400 million deal in Oakland. Earlier this week, The Registry reported that New York City-based Blackstone had placed under contract the purchase of the 396,808 square foot Uptown Station office building in Oakland located at 1955 Broadway. The deal is for the property to be acquired for about $405 million, or around $1,020 per square foot, according to sources that are aware of the sale of the property.

Oakland has generated a lot of investment interest in the last few years, especially as the technology sector has been growing out of its traditional bases in Silicon Valley and San Francisco. The abundance of housing development and availability has made Oakland a viable alternative for many working in that sector. According to a recent, fourth quarter of 2019 Oakland Metropolitan Area Office report, the market has seen a slight increase in vacancy year-over-year, but it remains very low at 7 percent. At the same time, asking rents have jumped by about 18 percent from the fourth quarter of 2018 to the fourth quarter of 2019, from $3.90 to $4.63.

West Coast Commercial Real Estate News