By Jon Peterson
UBS Realty Advisors will be putting the 521,177 square foot 1221 Broadway office building in Oakland on the market for sale in the near future. The offers for this potential sale could be in the range of $450 per square foot, according to multiple sources that track the sale of major office buildings in Oakland. At that pricing, the sale price could exceed $234 million. This would be the third sale of the asset since the Great Recession ended.
The listing agent on the sale will be the Northern California office of NKF Capital Markets. This firm declined to comment when contacted for the story.
The current owner of the property has held the asset since December of 2015. UBS had paid $165.4 million, or $317 per square foot, for the property at that time, as stated in public documents. UBS also has a $90,000,000 loan on the property, which MetLife Insurance Company provided in June of 2016, according to public documents.
UBS purchased the asset from Westcore Properties, which in turn bought it in 2012 for $110 million from Clorox.
The office building is known as the Clorox Building; the consumer goods company has been headquartered in the structure since 1988. The building was originally completed in 1976, and it was designed by Cesar Pelli when he worked with Gruen Associates, now based in Los Angeles, according to the building’s Wikipedia web page.
Clorox currently occupies approximately 40 percent of the space in the 24-story complex. It has a current lease that is well below market rates. This is a significant factor influencing the property’s value appreciation, as stated by sources familiar with the property and the sales process.
According to industry sources, the sale of the property may be planned for a very opportune time. The for-sale inventory in Oakland and San Francisco is pretty scarce at the moment. Both markets also have very low occupancy and are still showing good rental rate growth as the economy of the region continues to grow in a supply-constrained market.