SKB Snares Medical Office Building

The building has averaged 94% occupancy since 2002 but is currently 82% leased due to the recent relocation of a physicians group that wanted to own its own space. SKB projects its investment in Broadway Webster will generate a 19.47% IRR on a five-year hold.

The building houses approximately 30 office tenants. The ground-floor retail tenants are Tully's Coffee, Bank of the West and Long's Drugs. The average remaining lease term is about eight years. SKB plans to invest an additional $900,000 in the property for upgrades.

Broadway-Webster is located within the East Bay's premier medical office market, known as "Pill Hill", across the street from the Alta Bates/Summit Hospital Campus and seven blocks from downtown Oakland. SKB principal Bob Scanlan says its proximity to the hospital campus plays a major role in attracting and retaining physicians and other health care professionals.

"Broadway-Webster is the premier 'off-campus' medical office project available to physicians and medical groups in Oakland," says Scanlan. "The building comprises nearly one-third of the medical office space on Pill Hill, and its size uniquely positions it in the market as the only comparable medical office rival to the Alta Bates/Summit Hospital Campus."

A recent market study cited in the Wall Street Journal forecasted the Oakland Central Business District ("CBD") as one of the Top 5 Best Performing CBD Office Markets in the country over the next two years.

SKB makes opportunistic investment in Western U.S. on behalf of hundreds of high-net-worth individuals, families and trusts. The company buys and sells hundreds of millions of dollars worth of real estate annually and also provides equity and debt for developments.