Hackman Capital Partners Enters East Bay Market Through Emeryville Office Acquisition
Los Angeles-based Hackman Capital Partners has entered the East Bay market through its purchase of an office portfolio in Emeryville. The five-building, 131K SF portfolio named Emeryville Exchange was 87% occupied by 16 tenants, including Adobe-owned TubeMogul, at the time of purchase.
Several of the buildings have been converted from industrial to creative office and are in two parts of Emeryville and are 10 blocks apart.
The Thoroughbred Building at 1250 53rd St. is a single-story, 78K SF building that is 86% occupied. It was constructed as a showroom and distribution center in 1927 and was later converted into a creative office with exposed brick, open floor plates, tall windows and high ceilings. The building has access to over 200 parking spaces.
Jelly Bean Square consists of buildings at 6400 Hollis St. and 1350, 1352 and 1355 Ocean Ave. that are 89% occupied. The buildings total about 54K SF and used to be the site of a Jelly Belly distribution center. Buildings have high exposed ceilings with up to 23-foot heights, natural light, bow truss ceilings, concrete floors and open floor plans.
Hackman Capital plans to renovate the properties to capture more of the market’s creative-office demand.
“With its dynamic, pro-business economy and abundant amenities, including an exceptional transportation infrastructure, Emeryville is evolving quickly and thoughtfully,” Hackman Capital Vice President of Acquisitions Matt Landstrom said in a statement.
Emeryville has been piquing the interest of new investors in office and multifamily over the last year. In November, EverWest Real Estate Partners and Black Salmon purchased an office tower for $33M. The office tower is next to the Emeryville Public Market, which is undergoing significant renovations.
Decron Properties Corp. paid $87.4M for a 220-unit apartment complex in Emeryville. AvalonBay is building a family-oriented apartment complex with 389 units across from the Public Market, and AVA Apartment Communities opened its 284-unit short-term housing complex in Emeryville in September.
The city is 10 miles from San Francisco and between Berkeley and Oakland with access to several highways, an Amtrak rail line and shuttles to MacArthur BART. Existing employers include Pixar Animation, Bayer, Novartis, Clif Bar, Jamba Juice and Peet’s Coffee.