OAKLAND, CA — A prime site for development in downtown Oakland has been bought by real estate allies that are eyeing the property as the location of a modern office tower.
The property where the office high-rise could sprout is located at 1919 Webster St. at the corner of 19th Street in downtown Oakland.
Ellis Partners, a veteran Bay Area developer, and Intercontinental Real Estate, a real estate firm with a nationwide reach, have teamed up to buy and develop the property.
The development alliance paid $23.5 million for the property, according to documents filed on April 2 with the Alameda County Recorder’s Office.
Situated within the bustling Uptown district of downtown Oakland, as well as being a few minutes from the BART 19th Street Oakland train station, and just down the street from the shores of Lake Merritt, the property appears to have an excellent location.
The developers believe the site is a prime location for a transit-oriented project.
“This is an important high-rise development site sitting at the center of the rapid changes taking place in downtown Oakland,” said Jason Morehouse, a partner with Ellis Partners.
Ellis Partners and Intercontinental Real Estate had previously teamed up to develop The Key at 12th, a new office complex at the corner of 12th Street and Broadway in downtown Oakland that has become one of the commercial real estate success stories in the Bay Area.
Even before its completion, The Key at 12th is fully leased to tech finance powerhouse Credit Karma and the University of California Office of the President.
“Building on the momentum of The Key at 12th, we are excited to develop another transformative project at 1919 Webster,” said Jessica Levin, senior director of acquisitions with Intercontinental Real Estate.
The new office tower being contemplated by Ellis Partners and Intercontinental would replace an aging office building and a surface parking lot.
The old six-story building, constructed in the 1950s, has been vacant in recent years. PG&E is the seller of the site, according to a property marketing brochure that brokers from Cushman & Wakefield have circulated.
“We will listen carefully to our local stakeholders as we move forward to create a landmark building that helps the City meet the broad needs of the community while preserving Oakland’s unique character,” said Dean Rubinson, Director of Development with Ellis Partners.
The property is located in an area with plenty of amenities, according to a post on the PG&E site related to the site that the utility sold.
“More than 25 restaurants are within walking distance,” the PG&E post stated. The development allies believe the future office tower could be an iconic addition to Oakland’s skyline.
“This is an incredible opportunity to make another major contribution to Oakland’s urban renaissance as it cements itself as one of the great 24-hour cities on the West Coast,” said Allen Logue, director of acquisitions with Intercontinental.
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About Intercontinental Real Estate Corporation:
Intercontinental Real Estate Corporation is an SEC Registered Investment Adviser with decades long experience in real estate investment, finance, development, construction management and asset management. Since 1959, Intercontinental and its affiliates have managed, developed, or owned collectively over $10 billion in real estate property. Today, Intercontinental manages a real estate portfolio of approximately $6 billion for its clients. The Intercontinental portfolio is diversified both by robust property mix and by geography. Fund strategies actively seek opportunities to invest in both Core and Core-Plus properties, as well as in Value-Add development projects. http://www.intercontinental.net/