ALAMEDA — The sale of an athletics compound that has hosted multiple professional sports teams from Oakland is now in limbo, denying the city crucial revenue it needs to address a financial crisis.
The former Raiders practice facility spans 16 acres of office space and soccer fields on Alameda’s Bay Farm Island and is valued at $24 million. Oakland expects to bring in roughly half that amount after selling both its share of the property and an ownership interest acquired from Alameda County.
But a buyer that had stepped forward nearly a year ago, Bay Area real estate firm Prologis, Inc., “elected not to proceed” with the purchase last month for reasons that haven’t been made public, according to city documents.
It is yet another bad break for a city that has made a habit of budgeting dollars from property transactions that aren’t yet complete. The still-unfinished sale of the Oakland Coliseum is a more prominent example, though county officials last week signaled that the deal could soon move forward.
But the old Raiders practice grounds, a slick compound of turf soccer fields, training facilities, offices and vast concrete parking space at 1150 and 1220 Harbor Bay Parkway, now may need another suitor.
Its current tenant is Oakland Roots SC, a lower-division men’s soccer franchise that has gained popularity in the increasingly sports-starved town with plans to play home games next year in the Coliseum stadium. A companion women’s team, the Soul, also practices at the facility.
The Roots and Soul’s parent company, Oakland Pro Soccer LLC, could end up attempting to buy the property itself, or it may seek another partner that would continue leasing to the two soccer teams, which Prologis had promised to do before abandoning the deal.
At a meeting Tuesday, the Oakland City Council will consider approving a change to the deal that allows the franchises to seek a path forward.
“The total price of $24 million would remain unchanged,” a city report states. “The city commissioned an appraisal to support this price as the fair market value of the property.”
Oakland Roots Soccer Club President Lindsay Barenz at their training facility, which was the same for the Oakland Raiders in Alameda, Calif., on Wednesday, Dec. 14, 2022. (Ray Chavez/Bay Area News Group)
A spokesperson for the Roots declined to comment and representatives from Prologis and the city could not be reached for interviews.
The sale had previously highlighted tensions between city and county officials, who often have trouble agreeing what to do with properties they jointly own.
Similar problems have cropped up at the Coliseum, where a lease for the Roots to play home games next season hit its share of speed bumps, and a separate deal to sell the 112-acre East Oakland complex to the African American Sports and Entertainment Group remains pending.
Oakland, meanwhile, is staring down a $115 million budget deficit this year that is now expected to lead to cuts across all city departments, including police and fire.
In a report warning the city is hurdling toward insolvency, Financial Director Erin Johnson advised against continuing to budget dollars from the Coliseum sale, as outgoing Mayor Sheng Thao had pushed to do.
Still, city officials hope $95 million in revenue from the deal will arrive before the fiscal year ends in June. The sale of the Raiders training facility, which originally had been included in the 2023-24 budget, could be yet another boost if it ultimately comes together.
Shomik Mukherjee is a reporter covering Oakland. Call or text him at 510-905-5495 or email him at shomik@bayareanewsgroup.com.