Posted by: BayAreaComRE | June 7, 2010

Sourced: Shorenstein to sell Oakland City Center for $360M

According to the San Francisco Business Times and some local inside sources, Shorenstein has agreed to sell the Oakland City Center property to CB Richard Ellis Investors for roughly $360 Million. “The sale, which is expected to be under contract in the next week, would immediately put CBRE Investors on the map in downtown Oakland as owner of the city’s most prominent business complex. The sale is being driven by Shorenstein’s joint venture partner in the project, the State Teachers Retirement System of Ohio. STRS bought a 50 percent stake in the property in 1998 and, under the partnership agreement, either party can trigger a sale of the property.”

On paper, the deal looks like a win for both parties, a healthy exit for Shorenstein and Ohio Teachers, as well as a new entry point for CBRE Investors who’s been looking at gaining market-share through acquisitions around the country. Currently the eye-sore of the City Center portfolio is the hole in the ground at 601 City Center, which remains unfinished and undeveloped.

“Both symbolically and in terms of square footage, Shorenstein has been perhaps Oakland’s most important downtown landlord. The blue chip San Francisco-based developer, owner and operator was one of Oakland’s first top-tier institutional owners.” The sentiment in the Biz Times article has been echoed by local players, although some feel the change is good and will breathe new life into the market.

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