SAN FRANCISCO: 2014 vs. 2006

CBRE
The Opportunity To Score High-Value Properties In One Of The World’s Most Expensive Markets Could Appear In The Next Downturn.

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.

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