CBRE Secures $70M For Oakland Office Building Renovation
Lane Partners has secured $70M in balance sheet financing for the renovation and repositioning of an Oakland office building. CBRE Capital Markets arranged the financing of the 10-story, 236K SF building at 2150 Webster St. in Uptown.
The former AT&T building is 100% vacant, and Lane Partners plans to rebrand and reposition the property through a renovation of the exterior façade and infrastructure. Lane Partners purchased the building for $44M in 2016 through a JV with Walton Street Capital.
CBRE San Francisco executive vice president Brad Zampa, senior vice president Mike Walker and vice president Megan Woodring arranged the five-year, non-recourse, full-term interest-only, floating-rate bridge financing at a very competitive spread priced over 30-day Libor. A leading global investment management fund provided the financing.
Oakland is undergoing an influx of tenants and had a vacancy rate below 4.5% during Q1 2017, among the lowest levels since CBRE started to track the market in 1983. According to CBRE, Oakland’s central business district has one of the lowest vacancy rates in the country. The creative office building inventory in the Oakland CBD has a 2% vacancy rate.