Investing in Oakland with CrowdStreet
April 11, 2015
Oakland, CA – Urban Green partnered up with CrowdStreet to acquire a 24,000 square foot office building in Oakland: 1924 Franklin. Franklin is located in the Uptown neighborhood of Oakland. It is near some of Oakland’s largest employers such as Kaiser Permanente and Pandora, and is one block from the 19th Street BART station. Marcus & Millichap, the largest national commercial real estate brokerage in the Unites States, recently said the following about the East Bay office market: “…buyers who act quickly can take advantage of both low interest rates and low competition. Another year of strong operational performance locally and compressing cap rates elsewhere may send a wave of buyers into Oakland late this year, evaporating the opportunity to buy closer to the bottom of the real estate cycle. Average cap rates in the East Bay are 300 to 500 basis point higher than across the bridge in the city, supporting tremendous upside for owners” (page 43, Marcus & Millichap’s 2015 National Office Report). We agree with this assessment, as we expect to stabilize 1924 Franklin at an 8% cap rate, which is significantly higher than returns available in San Francisco today.
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