Behring Buys Bay Area Office Asset
This Uptown Oakland building traded at a significant discount.
Behring Cos. has acquired 1950 Franklin St., a 446,998-square-foot office building in Oakland, Calif. Kaiser Permanente sold the 21-story asset for only $14.4 million, according to CommercialEdge information.
As part of the deal, the company also purchased 1901 Franklin St., an adjacent 255,098-square-foot garage rising eight stories. The two structures will be part of Behring’s Stak Site urban campus, a live-work-play destination that will also include 1900 Broadway, a recently completed 452-unit community.
Kaiser had acquired the asset more than two decades ago, according to the San Francisco Chronicle. The company used to occupy the building that became mostly vacant after the pandemic started.
The Class A building came online in 1975 and has floorplates averaging 21,286 square feet. The tower features event and conference venues, media production studios, a cafeteria, as well as other indoor and outdoor lifestyle amenities.
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The new owner plans to conduct a redevelopment program that will lead to the building’s integration into its real estate ecosystem at 1900 Broadway. The properties are connected through an elevated skybridge and provide direct access to the 19th Street BART Station.
Located in Uptown Oakland, 1950 Franklin St. is close to a host of dining and retail options. Downtown San Francisco is 11 miles away, while the San Francisco Bay Oakland International Airport is less than 10 miles southeast.
San Francisco’s office vacancy rate stays high
Metro San Francisco saw $220 million in office investment volume year-to-date as of July, according to the latest CommercialEdge office report. Assets traded on average for $269 per square foot, well above the $173 national average. Additionally, the metro’s vacancy rate in July was 25.4 percent, well above the 18.1 percent U.S. figure.
One of the most significant recent deals in the area was Swift Real Estate Partners’ acquisition of Gateway at Millbrae Station, a 174,072-square-foot office building in Millbrae, Calif. Republic Family of Cos. sold the asset for $47.7 million or about $274 per square foot.
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