Here is another example of the Oakland DOOM LOOP. Now that this building sold for almost nothing, the property tax will go down. This, in a town with a massive deficit and plans are being made to cut back on cops and fire fighters—while the schools have hundreds of millions in deficits.
“A downtown Oakland office tower known as an “original highrise” for the East Bay city has been bought for an ultra-low price that represents a nosedive from the property’s prior values.
The Syndicate building at 1440 Broadway was purchased for $5.5 million by an affiliate controlled by Frontline Realty Capital, according to documents filed on Monday with the Alameda County Recorder’s Office.
The $5.5 million price that Frontline Realty Capital paid is in stark contrast to the prior values for the 10-story office building, which was constructed between 1903 and 1911 and totals about 91,000 square feet.
Oakland tower purchased for reduced $5.5 million price signals feeble market
Deal shows office building’s value has nosedived
By George Avalos, Bay Area News Group, 1/29/25 https://www.mercurynews.com/2025/01/29/oakland-office-economy-property-build-real-estate-develop-downtown/
OAKLAND — A downtown Oakland office tower known as an “original highrise” for the East Bay city has been bought for an ultra-low price that represents a nosedive from the property’s prior values.
The Syndicate building at 1440 Broadway was purchased for $5.5 million by an affiliate controlled by Frontline Realty Capital, according to documents filed on Monday with the Alameda County Recorder’s Office.
The $5.5 million price that Frontline Realty Capital paid is in stark contrast to the prior values for the 10-story office building, which was constructed between 1903 and 1911 and totals about 91,000 square feet.
CBRE, a commercial real estate firm, arranged the transaction.
“1440 Broadway represents the type of building I want to acquire more of, well-located assets with significant potential to create value through thoughtful repositioning and patience,” said Robb Mann, founder of Frontline Realty Capital.
The seller was an affiliate of BrightSpire Capital, which in 2023 took ownership of the highrise through a streamlined foreclosure process. The building’s value was $25.5 million at the time.
The price paid by BrightSpire was a huge decline from the $43.5 million that the prior owner, Tidewater Capital, paid in 2018 to purchase the building.
The various deals, including the most recent transaction, mean that in the six years since the Tidewater purchase, the building’s value has plummeted by 87%. BrightSpire also took a huge loss on the property.
The just-completed purchase of the 1440 Broadway office tower is the first in Oakland for Frontline Realty Capital.
“We are very optimistic about Oakland’s long-term outlook and look forward to being a part of the city’s important revival,” said Christian Diggs, a director with Frontline Realty.
A fund managed by Archway Capital provided the Frontline Realty affiliate with a $3 million loan at the time of the purchase, county documents show.
“This was a great opportunity for our group to invest in a prominent creative office building that I have been tracking for over 10 years.”
The current ground-floor tenants in the historic tower include Oaklandish, a high-profile apparel store; Edible Happy Pizzeria; and Gus’s World Famous Fried Chicken.
Orton Development, one of the building’s previous owners that in 2010 bought the historic tower and revamped it, praised the structure’s merits.
“This building, located in the heart of Oakland near city, state, and federal government offices, BART, and AC Transit, boasts Carrera marble interiors, high ceilings, large operable windows, and historic light fixtures and oak finishes,” Orton Development stated in a web post.
California businessman and real estate executive Francis Marion “Borax” Smith constructed the building.
Smith made his fortune in the late 19th century by hauling borax from rich mines in Death Valley and Nevada, employing 20-mule teams across harsh deserts, arid valleys and forbidding mountain ranges.
Buoyed by that fortune, Smith turned his attention to creating a real estate empire in Oakland. Smith and his partner Frank Havens constructed numerous buildings, notably the Claremont Hotel, Hotel Oakland and the 1440 Broadway building.
The 1440 Broadway tower became the headquarters for The Realty Syndicate, a real estate and development firm that Smith and his partner founded. Smith and Havens also were the prime movers behind the famed Key System railway lines.
Yet even after The Realty Syndicate ceased operations during the 1929 stock market meltdown and the Key System’s last train crossed the Bay in 1958, the 10-story office tower on Broadway remained, a silent witness to some of Oakland’s rich history.
