|Address:||1611 Telegraph Avenue, CA|
|Rentable SF:||113,400 Square feet|
|Date Acquired:||July 2014|
Latham Square, a historic landmark in the heart of downtown Oakland, was acquired in 2014 for $12 million. Ridge implemented a significant capital investment into the fifteen-story property, making it Oakland’s first and best truly creative office building. The space suited the needs of modern tenants with flexible and open floor plates, collaborative working environments and easy access to mass transit and some of the Bay Area’s newest and best neighborhoods.
Due to the low, all-in, stabilized basis of approximately $250/sf, the property yielded stabilized returns in excess of 8% yield on cost with double digit, levered cash-on-cash returns. The property was sold after 30 months for over $400 psf, resulting in a 39% IRR and 1.9x equity multiple.