A Texas real estate investment trust bought four Oakland properties for $282 million from its parent company, CIM Group of Los Angeles.
Dallas-based Creative Media & Community Trust buys three Jack London Square properties in Oakland and a majority stake in a downtown property San Francisco Business Times report.
The publicly traded CIM affiliate bought an 89.4% stake in the three Jack London Square properties.
It bought Channel House, a 333-unit apartment building at 40 Harrison Street, for $134.6 million. CIM acquired the site in 2016 for $18.5 million.
It purchased Site F3, a 2.29-acre vacant lot at 55 Harrison Street Approved to build a 144-room hotel, $250,000. CIM acquired the site in 2017 for $1.5 million.
and purchased Site D, a 0.55 acre parking lot at 466 Water Street Approved for a 136-unit apartment complex, $2.5 million. CIM bought the property in 2016 for $6 million.
The trust, managed by CIM Group, also bought a 98.1 percent stake in downtown 1150 Clay Street, a 288-unit apartment building, for $145.5 million. CIM bought the site for $3.35 million.
As part of the deal, Creative Media paid the City of Oakland $3.4 million in transfer taxes.
CIM and Creative Media are intertwined, even though Los Angeles and Dallas are far apart.
Creative Media CEO Barry Berlin is CIM’s Managing Director and its Chief Financial Officer David Thompson is CIM’s Chief Financial Officer.Both were paid for by CIM Group, not Creative Media, The Business Times reported, citing regulatory documents.
this creative media site Appoints David Thompson as Chief Executive Officer and Berlin as Chief Financial Officer.
Each has a unique investment role, Karen Diehl, spokesperson for CIM and Creative Media, told The Business Times.
While CIM has a limited asset holding period, Creative Media has a “long-term investment strategy,” she said. Both entities believed the Auckland market was strong.
Creative Media has 1.3 million square feet of offices. Diehl said in an email that it is shifting its focus from the office space to multifamily housing and is adding to its apartment portfolio.
It bought its first apartments at Channel House and 1150 Clay in the first quarter, as well as a 75-unit apartment complex at Echo Park in Los Angeles, according to regulatory filings.
Creative Media and CIM Group are also developing Town Tower, a 550-unit apartment complex Originally proposed as an office building, 325 22nd Street, Oakland.
This month, Creative Media’s board rejected Daniel Negari of XYZ.com $201 millionsaying it had “significantly undervalued” the business.
A financial document showed that Creative Media had a net loss of $12.7 million in the first quarter, up from a net loss of $8.9 million in the previous quarter and a net loss of $2.8 million in the first quarter of last year. Creative Media also reported that it held about $958 million in assets in the first quarter, up from $690 million in the fourth quarter.
— Dana Bartholomew
