Oakland Gains Strong Tenant Demand

OAKLAND, CA—In a transaction valued at $12 million, San Francisco-based Ridge Capital Investors LLC and Contrarian Capital Management LLC have acquired the Latham Square office building, located at 1611 Telegraph Ave. The seller was a lender that had foreclosed on the property in 2012.

The 114,000-square-foot, 15-story office property is located in Oakland's Uptown district. Ridge plans to substantially improve the property and its amenities, transforming the historic 1920's era building into Oakland's premier multi-tenant, creative office building. The plans include the refurbishment of the systems, office space and common areas to offer high quality, flexible and collaborative spaces that fit the needs of today's tenants.

Ridge principal Thomas Daniel tells GlobeSt.com that “Asking rents in Oakland have begun to show positive momentum this year and with continued strong demand from tenants looking for best-in-class creative space. We believe Latham Square provides an opportunity to create a work environment for today's modern tenants and capture significant growth within the market.”

He adds that “Latham Square is a classic beauty that will be restored to bring out its historic charm, while also offering some of the most attractive creative working environments for tenants that are compelled by the vibrancy of the Oakland Uptown live/work atmosphere.” The renovations and the delivery of blocks of 4,000 to 25,000 square feet of space will be completed before the end of 2014.

The property is located just a block away from both the 12^th Street and 19^th Street BART stations, less than a quarter mile from Interstate 980, and offers on-site parking. These attributes offer a variety of efficient commute options to suit the needs of today's transit oriented companies, Daniel adds.

The acquisition fits well within the venture's strategy of investing in core locations with strong employment and housing fundamentals, according to a prepared statement. Ridge, an active investor in both housing and office properties in Northern California, had been seeking the right opportunity to capitalize on the strong trends in Oakland for some time.

“We have seen the on-going transformation of many live/work neighborhoods in Oakland in recent years, but the national exposure to this local story makes this an exciting time for all of us,” says Daniel.

The property will be managed by Voit Real Estate Services and leasing and marketing by Bill Cumblich, Mike Keely, Jake Norton and Patrick Devinger of CBRE.