Port of Oakland - Newsroom

The Port of Oakland today made yet another stride forward in its efforts with the City of Oakland to turn the previously ignored areas along Hegenberger Road between Highway 880 and the Oakland International Airport, into a gateway corridor of prime business and visitor-oriented locations. The Board of Port Commissioners voted today to give its Commercial Real Estate Division authorization to execute an Exclusive Negotiating Agreement (ENA) with SIMEON Commercial Properties for the purchase and sale of 16 acres of land located on the corner of Hegenberger Road and Edgewater Drive.

The Port of Oakland's Commercial Real Estate Division has been in the process of implementing a previously adopted Restructuring and Development Plan that calls for the sale of certain parcels of land located in the Oakland Airport Business Park in order to assist in funding some of its waterfront projects. One of the parcels, known as the Hegenberger Corridor, is envisioned as a visitor-oriented destination and is planned as an area that would be used for high-end lodging, commercial, retail, and office development.

The proposed development will consist of a highest quality full-service hotel of approximately 300 rooms, conference space, as much as 1,000,000 square feet of Class-A office space associated retail uses and parking.

Founded in 1983, SIMEON Commercial Properties was selected based on its proven track record in hotel and office building development, the overall qualifications of its partners, and its ability to meet the financial requirements of the transaction. SIMEON Commercial Properties is a full-service real estate firm that develops and acquires office, tech and R&D, retail and industrial/distribution properties, as well as providing asset management, property management and leasing services for its own portfolio and those of third parties. In 1999, SIMEON had either acquired or had under development 900,000 sq. ft. of projects in the Bay Area. The year 2000 promises similar growth for the company.

Oakland City Councilmember, Larry Reid, (District #7, East Oakland, Coliseum, and Airport areas) expressed great enthusiasm for the potential of this development. Reid stated, "This is only one of many new developments in the coliseum and airport area for which I have been working for a long time to see come about. This particular project will be one of the key components of our vision for the Hegenberger Gateway Corridor. I am very pleased with the progress we're making toward making this a reality."

Port Commissioner, Phil Tagami, member of the Port Commission's Commercial Real Estate Committee, shared in Councilmember Reid's optimism, but cautioned, "This is only the first step among many that are required before the Port makes a disposition of its real estate assets. I am hopeful we will be able to work with the developer and the City to bring this project to fruition."

To further enhance these development efforts, the Port and the City of Oakland are jointly funding a $4 million Hegenberger Gateway project that will upgrade landscaping and lighting along Hegenberger Road to create this new gateway to Oakland and the East Bay.

As the market for office space in Oakland booms and the need for hotel rooms and retail increases, the Hegenberger area is seen as one of several prime locations in Oakland for this type of growth. Russ Pitto, Chairman and CEO of SIMEON expressed his confidence in the future of this project. "This first step in the implementation of the Hegenberger Gateway Plan is a grand slam for the Port and City of Oakland. With close to a million square feet of Class A office and hotel space, it represents an opportunity for corporate relocation and a number of new jobs for the city. We're proud to be part of this vital component that represents another exciting growth area for Oakland."

Today's action will allow SIMEON Commercial Properties to perform due diligence on the site and to negotiate the terms of a Purchase and Sale Agreement. The full terms of such agreement are to be concluded not later than October of this year.


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