SAN FRANCISCO: 2014 vs. 2006
This week, DivcoWest closed on Lake Merritt Plaza, which some brokers call the nicest office complex in Oakland. Sources say it traded for around $265/SF. The 80%-occupied site includes the 27-story, 490k SF 1999 Harrison and the four-story, 45k SF 1956 Webster. Beacon Capital bought it for a whopping $347/SF in 2006.
But that comp isn't a good one; sources remind us that year was an anomaly that hurt a lot of people. (Of course '06 was weird; Chamillionaire had a No.1 hit.) It's better to compare the trade to last fall's sale of a nearby Class-A tower: Oakland City Center's 555 12th (above), which sold for a bit more per SF due to in-place rents.