Second Acquisition in Four Weeks for Walnut Creek-based Property Investor
WALNUT CREEK, CA, December 13, 2017 – Vertical Ventures LLC closed on the acquisition of two multi-tenant office buildings near Oakland International Airport for $20,860,000. The buildings are located at 303 and 333 Hegenberger Road, and are known as Oakland Airport Plaza. Constructed in 1968 and 1972, the buildings total approximately 199,000 square feet, and were originally occupied by Bank of America and Wells Fargo Bank. While Bank of America still maintains a presence with a retail bank branch on the ground floor of the 303 building, both buildings now house many different tenants, and are approximately 81% leased. The seller was Beverly Hills-based Kennedy Wilson, which had owned the project since 2008.
Vertical Ventures plans to make improvements to the project to make it a more appealing option for tenants seeking high quality office space in Oakland. “Rents have risen so quickly in the Oakland CBD, we think this project can provide a desirable alternative for users wanting institutional-quality office space at a sizable rent discount” says Christopher Aust, head of acquisitions for Vertical Ventures. While average monthly asking rents for office space in downtown Oakland are approaching $5.00 per square foot, the investor envisions rental rates at Oakland Airport Plaza of nearly half that level, once improvements have been completed. “We have a strong vision for what this asset can be”, says Vertical Ventures’ founder and President, Hamid Rezapour. “We’re intent on executing a complete physical makeover for both buildings, resulting in a modern, professional environment that will be attractive to a wide range of tenants. We’re excited to add another investment to our portfolio from one of the most rapidly changing office markets in the country” added Rezapour. Conor Famulener of CBRE in San Francisco represented both the buyer and the seller in the transaction.
Less than a month earlier, the company purchased a vacant warehouse building totaling over 420,000 square feet in Lathrop, CA adding to its growing Northern California portfolio.
About Vertical Ventures
Founded in 2004, Vertical Ventures is an established, highly-focused 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.