East Bay office property sale highlights declining values

An office building in Emeryville, located at 6001 Shellmound Street, has recently been sold, reflecting declining property values in the Bay Area. The transaction occurred through a rapid process known as a deed in lieu of foreclosure. Blox Ventures, a San Francisco-based real estate firm, purchased the eight-story building for $20.6 million. This price is significantly lower than its estimated value of $37.2 million as of January 2024, according to local assessments. The building was built in 1988 and offers 109,300 square feet of space. The previous owner was a real estate group led by Everwest Advisors from Colorado. The transaction highlights challenges in the Bay Area office market, including rising vacancies and falling rents. Despite the difficulties, Blox Ventures is optimistic about the property's potential due to its location near other major companies like Pixar and Bayer. Currently, the office building is about 60% occupied, allowing for future growth. Blox Ventures has a history of successfully revitalizing commercial properties, signaling their confidence in turning around this recent acquisition.