Built in the 1920s, Tribune Tower is the 11th tallest building and a symbol of the city of Oakland.
As the office market continued absorbing space in Downtown Oakland and rent growth continued in the next 12-18 months, the location of Tribune Tower had minimized risk exposure.
We, alongside our partners Harvest, did a complete repositioning of an Oakland landmark property into best-in-class creative office. At 25% occupied and an additional 20% of the building rolling within two years, this vacancy allowed for Harvest to complete a seismic retrofit, address years of deferred maintenance including elevator modernization and implement major building systems repair and replacement.
This work, coupled with the planned common area upgrades and a lobby renovation, presented a rare value-add opportunity to acquire a landmark building located at the heart of a rapidly evolving, supply-constrained urban environment with in-place rents significantly below market.
As a part of the business plan, Harvest executed lease terminations associated with the previous owner’s EB5 business ventures and is planning on leasing the
vacant spaces at market rates. Harvest upgraded the building through a lobby renovation, seismic retrofit, and elevator modernization.
Tribune Tower was redeveloped to an institutional scale and quality that could attract institutional, high net worth, as well as public company investors.
The property was sold to a high net worth individual, in January 2019. The new owner was looking to expand their downtown Oakland footprint and was willing to pay more than the institutional or public markets.
Although the Bay Area is currently down, we think there is too many demand generators, innovators and institutions of higher learnings for it not to rebound, so we look forward to re-entering this market.
Environmental Engineer
2moGreat news! Enjoyed my time with S&ME a great company focused on solving client problems.