The Bay Area Real Estate Journal
Oakland, Developers Sign Agreement For Army Base Reuse
Submitted February 9, 2010, 6:59 PM
The city of Oakland has signed an exclusive negotiating agreement with San Francisco-based AMB Property L.P. and California Capital Group regarding redevelopment of the Oakland Army Base.
The 360-day negotiating period began Jan. 19. The agreement requires both parties to work toward a disposition and development agreement and a master lease agreement for the city’s 118-acre share of the former base, which closed in 1999.
Well-known East Bay developer Phil Tagami is the managing general partner of the California Capital Group. Tagami is perhaps best-known for spearheading the renovation of the Fox Theater in downtown Oakland. AMB is a leading owner, operator and developer of industrial real estate. It focuses on major hub and gateway distribution markets in the Americas, Europe and Asia. As of Dec. 31, AMB owned or had investments in joint ventures, properties and development projects expected to total approximately 155.1 million square feet in 47 markets within 14 countries. The company’s portfolio consists of industrial properties built for speed and located near airports, seaports and ground transportation systems.
Among the issues to be decided during the exclusive negotiations with the city are the developers’ equity participation in the project, the fair market rent for the property and who will pay for infrastructure work. The property needs at least $150 million in site preparation, including stabilizing the sea-level, flood-prone land for development.
AMB and CCG have proposed a logistics and transportation hub for the land, which would act as an expansion of the Port of Oakland. With the improvements, Oakland city officials hope to generate high-wage jobs.
The developers are also seeking to become master developer of the port’s share of the army base.
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