OAKLAND — A big industrial and logistics hub in Oakland has been bought for well over its previous value in a deal that offers some hope for the reeling Bay Area commercial real estate market.
WPT Capital Advisors, through an affiliate, paid $112.5 million for the Oakland industrial center, documents filed on March 25 with the Alameda County Recorder’s Office show.
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The building was purchased for more than its assessed value, which represents a welcome counterpoint to the loan failures and foreclosures that now haunt the Oakland commercial real estate market.
Multiple Oakland hotels, office buildings and apartment hubs have been jolted by loan defaults and plunging values over the last few years.
The purchase price for the just-bought Oakland industrial center was 53% above the property’s assessed value of $73.4 million.
The shift in the industrial building’s property value hints that the site might experience a rise in its assessed valuation.
This has implications for local government agencies and the services they provide. Property taxes produce a crucial revenue stream for cities, counties, regional agencies, and school districts.
Minnesota-based WPT Capital Advisors obtained a $67.6 million loan from PGIM Real Estate Finance at the time of the purchase of the Oakland industrial center, according to county real estate documents.
Benjamin Moore, a veteran provider of paints and exterior coatings, is one of the tenants in the industrial, warehouse and logistics building, according to Google Maps.
The building, located at the corner of Pardee Drive and Swan Way, totals 374,700 square feet, the PropertyShark commercial real estate database shows.