Newmark has announced it has completed the sale and financing of 1221 City Center, a 24-story 521,177-square-foot Class A trophy office tower located at 1221 Broadway in the heart of downtown Oakland, CA. 1221 City Center benefits from a direct connection to BART and is 98 percent occupied with a strong roster of credit tenants including The Clorox Company, Union Bank, Stanford Health Care, Wells Fargo, Parsons Brinkerhoff, and Verizon, among others.
Newmark Vice Chairman Steven Golubchik, Senior Managing Director Tyler Meyerdirk and David Hosler represented the seller. The buyer, KKR and TMG Partners, worked with Newmark Vice Chairman Ramsey Daya, Senior Managing Director Chris Moritz, and Director Travis Bailey to raise debt for the acquisition.
“1221 City Center is a terrific opportunity to buy a skyline asset in the heart of Oakland, and is one of only three properties which provide direct access to the BART station from the lobby,” said Golubchik. “As the largest single asset sale in the history of Oakland, this transaction speaks to the strength of the Oakland market.”
The property has had more than $24 million of capital improvements over the past five years including a significant lobby renovation featuring modern marble and wood paneling. It features 360-degree views that span from the Bay Bridge and the San Francisco skyline to the Oakland Hills, LEED Platinum rating, extensive glass window lines, large floorplates and extensive on-site amenities that include an expansive outdoor plaza featuring a variety of shops, eateries, and lifestyle amenities.
Oakland’s central business district has the lowest office vacancy rate in the country at approximately 4.9 percent. This is largely driven by a demand for large blocks of office downtown space and lack of supply. More than 120 tenants leasing more than 2 million square feet of space have relocated to or expanded in Oakland from San Francisco since 2011.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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