Kaiser Permanente has sold the 21-story office tower at 1950 Franklin Street and an associated parking garage in Downtown Oakland, Alameda County. The complex is now owned by Behring Companies, a residential developer responsible for opening a 39-story residential tower at 1900 Broadway. The new commercial real estate will be integrated into the new owner’s Stak Site network for customers in the city.
With the sale, Behring Co. now owns 1901 Franklin Street and 1950 Franklin Street. The former is an eight-story garage with around 635 parking spaces across over a quarter million square feet. A third-floor elevated skyway connects the garage with the 21-story office tower with around 447,000 square feet of adaptable floor space. The offices include event and conference rooms, a media production studio, and a cafeteria, among other amenities.
1901-1950 Franklin Street skybridge, image via Google Street View
Colin Behring, CEO of Behring Co, identifies that “the acquisition of 1950 and 1901 Franklin allows us to assemble a dynamic urban campus capable of reshaping downtown Oakland… 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.” Stak is the umbrella branding from Behring Co. for their mixed-use tower at 1900 Broadway, including the housing, amenities, services, and rentable co-working space. The eight-story garage parcel is directly connected to the residential tower.
According to the developers, most of “the building’s space will undergo redevelopment and integration into Behring’s ‘full-stack’ real estate ecosystem at 1900 Broadway, which combines apartments, office and coworking spaces, amenities, a functional fitness facility, and Stak GO Tesla fleet.”
1901 Franklin Street with 1900 Broadway visible in the background, image via Google Street View
Kaiser sold the combined property to Behring Co. earlier this month for $14.35 million, averaging around $32 per square foot. The Oakland sale comes a little over a month after the Behring Estate closed on a $10.8 million sale of the sprawling Blackhawk mansion built for the late Kenneth Behring at 81 Eagle Ridge Place. Blackhawk is the gated community developed by the Behrings, which started in 1978 and helped establish its regional prominence.
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I could live there. Pick me before I get passed 80.
Despite the bargain-basement price this sale indicates some nascent life in the CRE sector in Oakland. Perhaps this is the beginning of a new growth cycle that re-establishes DTO’s role as the primary commercial center of the East Bay region.
@JohnReading, I’d like to think that you’re right about DT Oakland’s renaissance but, until I see the old Capwell’s>Emporium Capwell>Sears building used for something dynamic and cohesive, I’ll have trouble believing it. Even Shake Shack threw their hands up in defeat!
@Lorri Arazi, Development is cyclical and I’ve lived through a few so I’d like to think I’m right too. National chains aren’t going to wait and many small businesses cannot afford to wait for the uptick so not surprised there’s still closures. That said, the fundamentals (access, infrastructure, etc.) of DTO remain solid. It would also most certainly help to have local government leaders focused on creating and maintaining an environment in which businesses can have a better chance of success.
Meanwhile, high crime rate and other problems continue in this town…
As soon as Kaiser’s CEO passed away they’ve been slowly peace-ing out of Oakland. Sad days. Hopefully Behring does something good with all this property…