American Realty Advisers And Westcore Properties Sells Class-A Office Tower In Oakland, CA
OAKLAND, CA, December 22, 2015 – American Realty Advisors and its partner, Westcore Properties, announced the sale of 1221 City Center, a LEED Platinum trophy-caliber office tower located in the heart of Oakland California’s CBD. The 24-story tower, which encompasses 521,177 square feet, is located within Oakland’s thriving City Center mixed-use development at the intersection of 12th Street and Broadway. 1221 City Center features immediate access to Bay Area Rapid Transit (BART), prolific view corridors, a newly renovated lobby, and common areas with exceptional finishes.
According to Kirk Helgeson, American’s Chief Investment Officer, American and Westcore timed the disposition to capitalize on the strong demand for high quality office assets in the Bay Area. “Our strategy at acquisition was to renovate the property, lease up the remaining vacancy, and ultimately create an asset that was attractive to a wide range of core buyers,” says Helgeson. “1221 City Center is a strong asset for a long-term holder, and we believed that it was time to realize the value that we have created for our investors after successfully executing the business plan,” he added.
Westcore Properties’ Don Ankeny indicated that the “extensive recent capital enhancements, the strong tenancy, which features 91% occupancy with an investment grade credit anchored rent roll, and the asset’s direct access to market leading amenities,” were reasons for the significant buyer interest. He added that the nearly $17 million in capital improvements from the American and Westcore partnership has transformed 1221 City Center into one of Oakland’s premier office properties.
In recent years, the Oakland office market has continued to benefit from the strength of the overall Bay Area economy. “Significant amounts of adaptive reuse development, substantial institutional investment in the office and multifamily sectors, and the rent discount from San Francisco’s CBD has continued to attract high quality office tenants to the area,” noted Ankeny.
American and Westcore were represented in the transaction by Eastdil Secured.
With over $7.4 billion in assets under management, American Realty Advisors is an investment manager to institutional investors, and has provided real estate investment management services for over 27 years utilizing core and value-added commingled funds and separate accounts. American acquires assets directly or provides equity, preferred equity, mezzanine debt, debt and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties. More information regarding American can be found at www.americanreal.com.