(EDITOR’S NOTE: According to market sources and published reports, the transaction closed for $29.9 million, or around $528 per square foot.)
WALNUT CREEK, CA, February 4, 2020 – Vertical Ventures recently closed on the acquisition of an historic multi-tenant office building in Oakland’s Central Business District. The building is located at 426 17th Street and is known as The Wakefield Building. Constructed in 1904, the building totals approximately 56,667 square feet, and is currently 57% leased to five different tenants. The seller was an entity controlled by The Swig Company.
Vertical Ventures plans to invest additional capital into the project, including renovations to building common areas and improving the existing vacancies to a market-ready condition. “This is a high-quality historic office property, with a great location, near everything exciting that’s going on in downtown Oakland” says Christopher Aust, head of acquisitions for Vertical Ventures. “We’ve wanted to plant a flag in Oakland’s CBD for a while now, and we feel like this is a great opportunity” he added.
Oakland CBD has undergone significant growth in recent years, bolstered in part by new office development, increasing tenant demand, and thousands of new housing units coming online. Many Bay Area office users are viewing Oakland with new enthusiasm, based on its’ access to transit, proximity to San Francisco CBD, and new housing development and amenities.
The seller was represented by Cushman & Wakefield’s San Francisco-based capital markets team of Seth Siegel, Adam Lasoff, Steve Hermann, Eric Fox and Ryan Venezia. Acquisition financing was arranged by Nathan Prouty of NorthMarq Capital’s San Francisco office. Conor Ranahan and Ari Rokeach of Newmark Knight Frank in Oakland will maintain the leasing assignment for Vertical Ventures.
About Vertical Ventures
Vertical Ventures is an investor, developer and operator of institutional quality commercial real estate assets. The firm concentrates on identifying, acquiring and revitalizing well-located, quality projects that are temporarily undervalued. The firms’ primary focus is on office, R&D and industrial properties in well-established, supply-constrained, submarkets in Northern California. The professionals of the firm average nearly 20 years’ experience transacting and operating real estate and generating attractive investment returns from both institutional and entrepreneurial platforms. Investments are made on a direct and joint-venture basis, in collaboration with select institutional and high-net worth individuals and family offices.