Oakland has recently seen California’s highest annual appreciation of home values and the biggest rent growth of the 50 largest U.S. cities. Despite its recent growth, Oakland real estate still trades at a significant discount to similar real estate in San Francisco, despite being a reasonable commute away. It is a thriving urban destination located adjacent to both the San Francisco Bay Area and the famed Silicon Valley metropolitan area of San Jose.
In 2018, we finalized a major lot assembly in Oakland. We purchased the first piece of land, located at 4207 Broadway, in September 2017, and immediately began working to assemble the surrounding parcels. This first parcel measures 7,500 sq. ft. In July 2018, we closed on an additional 6,353 sq. ft. of land to the north. The third (and largest) Parcel of land, which surrounds both of the other parcels, totals 29,103 sq. ft. The owner of this parcel will contribute the land towards an equity position in the project as part of a joint venture because he sees the value CGI will bring not only to the land but also to the surrounding community. This is an incredibly exciting validation of our work and our mission.
The property is only four train stops away from San Francisco’s financial district via the nearby MacArthur BART station and Redfin recently named the nearby Bushrod neighborhood as the hottest neighborhood in the country. Similarly, a recent report by Zillow indicated that each of the five hottest neighborhoods in the Bay Area for residential price appreciation are all in Oakland.
At the end of 2018, we submitted our plans to the City of Oakland and are awaiting permitting and approval to break ground. The initial feedback from city officials has been unanimously positive about this development and we anticipate breaking ground on the first quarter of 2019
If you would like more information about how to get involved with this opportunity, reach out to our Director of Investor Relations, Dasha Waller at DWaller@cgistrategies.com
Other fun facts about Oakland are:
In January 2013, the Oakland unemployment rate was nearly 13%. It has since dropped to 4.3% (significantly below the average for California), with the number of jobs expected to continue to grow.
Forbes recently named Oakland one of the 20 best cities for summertime travel.
Oakland has the fifth largest cluster of “elite zip codes” in the United States, which are ranked by the number of households with the highest combination of education and income, with 38% of the population over 25 having a bachelor’s degree or higher.