Just some months in the past, the town of Oakland was set to promote a former sports activities coaching facility utilized by the Raiders to ProLogis, an enormous actual property agency. This transaction would have given the town much-needed income. It additionally would have allowed the Oakland Roots and Soul soccer groups to proceed utilizing the power for observe.
To get this deal throughout the end line, Oakland agreed to purchase Alameda County’s 50% stake within the observe facility, which is positioned within the metropolis of Alameda. Oakland officers have been wanting to get the deal performed so they might strengthen the town’s bid to host a soccer staff through the 2026 males’s World Cup.
However the deal has evaporated as a result of ProLogis pulled out shortly earlier than the sale was supposed to shut.
Why? ProLogis hasn’t given an in depth reply.
What comes subsequent? That’s unclear.
On Tuesday, the Metropolis Council pivoted to attempt to promote the coaching facility to Oakland Professional Soccer, which owns the soccer groups, or to an investor who will associate with OPS. Doing so will depend upon Oakland Professional Soccer elevating cash or discovering an investor associate. The overall worth for the property of $24 million would stay unchanged.
“We’ve positively hit a bump with ProLogis, I want we weren’t right here,” Lydia Tan, the chief actual property officer for the Oakland Roots and Soul, instructed the council. Attempting to strike a constructive observe, Tan stated the membership has hosted dozens of neighborhood occasions on the facility and is concentrated on bringing on a brand new associate and finishing the transaction as quickly as doable.
Oakland signed the acquisition and sale agreements with ProLogis and Alameda County on Aug. 6 however ProLogis later “elected to not proceed.”
“After finishing due diligence, we concluded that this deal in the end will not be going to work out and want the perfect for the Metropolis, County and Roots as they transfer ahead,” a ProLogis spokesperson instructed The Oaklandside.
Nobody else has had a lot luck getting solutions from the corporate. A consultant for the soccer membership instructed The Oaklandside that ProLogis didn’t share their rationale with them.
A key a part of the settlement with ProLogis was that the corporate needed to lease the property to Oakland Professional Soccer for 10 years. This could let the Roots and Soul proceed training on the facility, which they’ve used since December 2021, whereas positioning the property as a number venue for a World Cup staff. The groups’ consultant stated they’ll insist that any new investor might want to comply with this lease.
Town was additionally quick on solutions about what spoiled the deal. A spokesperson instructed The Oaklandside that ProLogis “concluded — sadly very late within the course of — that proudly owning an athletic facility and their partnership with the Roots weren’t sufficiently aligned with that core enterprise.”
“This was about ProLogis and never concerning the property,” the spokesperson stated in an emailed assertion.
ProLogis is the most important property proprietor within the Bay Space, based on the corporate’s web site, with over 25 million sq. toes of warehouse, workplace, and industrial area. The corporate’s properties are likely to serve warehouse, logistics, and industrial features.
The autumn by way of of the deal gained’t make Oakland’s rapid funds deficit any worse. Anticipated income from the sale wasn’t included within the 2024-2025 fiscal yr funds, a metropolis spokesperson stated. The council is assembly subsequent week to debate potential cuts advisable by the town administration.
Oakland has been having a tough time promoting surplus property. Earlier this yr, Oakland’s mayor and council tried to stability a projected shortfall by promoting the town’s stake within the Coliseum complicated to a non-public developer. The sale has been delayed, primarily due to inaction by Alameda County, which pressured the town to enact a contingency funds that features heavy cuts to public companies. Employees from Oakland’s Finance Division have cautioned elected officers in opposition to balancing the funds utilizing cash from one-time land gross sales.
In April, the town council additionally approved the town administrator to attempt to buy Alameda County’s 50% stake in a roughly 9-acre property often known as the Malibu lot that’s adjoining to the Coliseum. The plan was to pay the county $8.7 million utilizing income generated by regardless of the metropolis did with the property. Town was in negotiations with Oakland Professional Soccer over a plan to lease the positioning and construct an interim stadium the place the Roots might maintain video games beginning in 2026. The county rejected the town’s provide, a metropolis spokesperson stated.
