Cannae Partners has scooped up EmeryTech, the 234,016-square-foot creative office campus at 1400 65th Street in Emeryville, putting one of the East Bay’s better-known adaptive-reuse office complexes into the hands of an opportunistic investor at a moment when the regional office market is still trying to find its footing. The move highlights ongoing demand from buyers hunting for institutional-quality assets they can reposition for hybrid, R&D and creative users.
The Deal
Newmark arranged the sale and represented buyer Cannae Partners, with Executive Vice Chairman and President, Western Region Capital Markets Steve Golubchik, Vice Chairman Edmund Najera and Senior Managing Director Darren Hollak on the assignment, according to Connect CRE. Golubchik said EmeryTech checked every box investors are looking for in the East Bay: institutional-quality construction, significant recent capital investment, and durable cash flow. The seller and the transaction price were not disclosed in the report, leaving the deal terms under wraps for now.
Building And Tenants
The 234,016-square-foot complex is roughly two-thirds leased after Premier Nutrition signed a long-term, 10-year lease that expanded its footprint at the property, the San Francisco Business Times reports. That deal helped push occupancy to about 66.9 percent and followed a round of tenant improvements. Industry coverage also notes that the campus has received more than $37.9 million in recent capital improvements aimed at modernizing HVAC systems, solar infrastructure and amenity spaces, positioning EmeryTech as a more modern draw for office and R&D users.
Why It Matters
The sale slots into a broader pattern of discounted trades and short-sale risk across the East Bay’s office stock, where elevated vacancy has sharply reset valuations. Blackstone acquired EmeryTech in 2019 for $126.5 million, and the property was marketed earlier this year amid speculation it might trade as a short sale, a sign of how far the market has moved, according to The Real Deal. Brokers and industry observers say buyers will have to lean on active leasing efforts and targeted capital plans to capture demand from tech and R&D tenants.
What Comes Next
Connect CRE notes that the sale price was undisclosed and that Newmark and Cannae did not immediately comment on terms. How Cannae ultimately repositions EmeryTech, whether toward lab-adjacent R&D, creative office or a hybrid campus, will determine how quickly the asset stabilizes and backfills its remaining vacancy. This story is not over, and this item will be updated as new leasing activity, refinancing moves or redevelopment plans for the campus are announced.
