Kaiser has sold a 21-story office tower in Uptown Oakland and an adjacent 635-space parking garage for $14.35 million to Behring Companies, according to public records.
The deal works out to just $20 per square foot for both the 450,000-square-foot office tower and the 255,000-square-foot parking garage, both within a block of Behring’s 1900 Broadway mixed-use apartment tower, which started leasing earlier this year.
Kaiser said in a statement that the office building at 1950 Franklin Street has been “nearly unoccupied” since the start of the pandemic and that the company had been “exploring options for potential future use.” The statement added that its national headquarters would remain in Oakland’s Ordway building near Lake Merritt.
In 2019, Kaiser unveiled plans for a new 1.6 million-square-foot headquarters on Telegraph Avenue in Oakland developed by Lane Partners and Strategic Urban Development Alliance. The healthcare giant planned to sell 1950 Franklin, as well as 1800 Harrison and 2000 Broadway to Lane Partners as part of a $900 million deal. But COVID shutdowns scuttled those plans and the deal fell apart in March 2020.
Kaiser sold 105,000-square-foot 2000 Broadway to BART for its new police headquarters for $26.5 million, or $252 per square foot, just last month and said that it was “very pleased” to sell 1950 Franklin and the adjacent eight-level parking garage at 1901 Franklin to Behring Companies, given the EB-5 developer’s “strong ties to Oakland.”
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“The acquisition of 1950 and 1901 Franklin allows us to assemble a dynamic urban campus capable of reshaping downtown Oakland,” said Colin Behring, CEO of Behring Companies. “This is the perfect opportunity to expand our vision for a fully integrated Stak Site, where people can live, work and play in one cohesive environment.”
The office tower has adaptable office space, event and conference venues, media production studios, a commercial-grade cafeteria and indoor/outdoor lifestyle amenities, according to Behring. The majority of the building’s space will undergo redevelopment and integration into the company’s “full-stack” of amenities at 1900 Broadway, which combines apartments, office and coworking spaces, a fitness facility and access to a Tesla fleet. The parking structure already has EV chargers in place.