Shorenstein to Sell Oakland City Center for $360 Million

Shorenstein Properties has tentatively agreed to sell the premier class A portfolio known as “Oakland City Center” to CB Richard Ellis Investors for just under $360 million. The sale which is reportedly under contract within the next week would put CBRE Investors on the map in downtown Oakland as the one of the city’s most prominent business complexes. The sale is being driven primarily by Shorenstein’s joint venture partner in the project State Teachers Retirement System of Ohio. STRS bought a 50% stake in the project in 1998 and under the agreement either party can trigger a sale. The portfolio was purchases in 1998 for $118 million or $114 a square foot following the bankruptcy of the project developer Bramalea Ltd. Shorenstein’s purchase in the late 90′s triggered other large institutional investors such as CIM Group, SKS Investments and Swig Co, to take up property. What does this do to the market some ask? Well it puts another large firm in control of over a million square feet of class A real estate. As far as leasing goes it opens the door for many companies large and small to put their clients in premier space without creating a conflict of interest. This should be exciting to watch and follow as details of the sale unfold.