Disposition Strategy for Properties in
Reuse Area of Alameda Point
January 20, 2026
Photo source: Maurice Ramirez
Photo source: Maurice Ramirez
Building 92 Site of
Buildings 114,
101
Building 7
Study Session Objectives
• Review 2023 Reuse Area Disposition
Strategy Background and Goals
• Share Updated Information on Master
Infrastructure Plan and Disposition
Strategy
• Seek Feedback on Recommended
2026 – 2027 Disposition Strategy
Work Plan
New infrastructure and sold buildings on West Tower Avenue Master Infrastructure Plan (MIP) Background
Replace Aging Infrastructure: Water, sewer, power, stormwater, and roads require replacement, as called for in the MIP .
Invest in New Adaptation Infrastructure: Sea and ground water level rise adaptation needs, bioswales
Other Complete Community Needs: Parks, open space, recreational needs, multimobility needs (bike lanes, transit stops, sidewalks and lighting, bulb outs, shared parking areas)
Construction Phasing: Plan improvements in connected phases to support system continuity and reduce disruption.
Overall Cost Estimates: nearly $900 million as of 2025, up from approximately $700 million in 2020.
Outdated Infrastructure
Being Removed
Flooding During “Super”
King Tide Jan 2026
New Backbone Infrastructure on
Saratoga Street
Reuse Areas vs.
Development
Areas
• Master developer-led
infrastructure replacement in
“Development Areas”
• Infrastructure as
consideration for land
• City-led infrastructure
replacement in “Reuse Areas”
• Funded primarily through
cumulative sale of individual,
smaller properties
• City leads on building
infrastructure
Master Infrastructure Plan
Planned Phasing in Reuse Area
Phase 1 • Phasing Plan from East Bay
Municipal Utility District (EBMUD)
10-Year Water Infrastructure
Agreement (2017-2027)
• West Midway Ave & West Tower
Ave. Water lines from Main Street
to PanAm Completed
• Reuse Phase 1 Backbone Streets
Completed
• Reuse Phase 2 Water Completed
• West Midway Ave street
improvements underway by
Catellus (developer)
2023 Disposition Strategy Goals
SELL
SELL
LEASE
LEASE
SOLD
SOLD SOLD
SOLD
SOLD
Phase 1
• Maximize land value and sale
proceeds by selling adjacent to new
infrastructure
• Retain high-value leasing assets until
operational costs are reduced -
continue leasing of hangars until
adjacent backbone infrastructure has
been completed
• Maintain flexibility - provide ability to
be nimble, opportunistic
SOLD
LEASE
Alameda Point Funding & Revenue Context
Phase 1
• Conveyance agreement with Navy requires all
proceeds from lease or sale in Alameda Point “to
support long term job creation and the economic
redevelopment of, or related to the Property” until
2037.
• City accounts for revenues and expenses in separate
funds (Fund 290 and 291)
• City and property management expenses are covered
by ongoing lease revenues.
• Sales of land to cover infrastructure costs.
• It will be important to manage / reduce City
operating expenses as lease revenues decrease, and
balance sale of vacant and leased buildings.
The Currently Vacant Navy Chapel at Saratoga and
West Ride Line
New Infrastructure Considerations
• Phase 2 backbone loop is estimated to cost
$43 million
• This is the City’s revenue target for short
term property sales
• EBMUD Infrastructure Agreement Expires in
2027
• This agreement allows the City to
sequence land sales before
infrastructure, a critical strategy given our
funding constraints
• City will need to negotiate a new
agreement within the next year.
New EMBUD water
lines on Saratoga Street
Storehouse Lofts and
Adjacent New
Backbone Street
Disposition Updates Since 2023
• Construction costs are increasing faster than
land values.
• At $900 million, the City would have to sell
its land at $2.55 million per acre on
average to implement the MIP .
• Negotiated sales price for Pacific Fusion
deal was $2.25 million.
• Many City-owned buildings in need of major
investment, affecting land value.
• Lease revenues are insufficient to address the
large-scale deferred maintenance on some
buildings.
Building 16 currently
vacant
Contractors repairing a
hangar roof
Photo source: Courtney, Inc.
Disposition Updates Since 2023:
Building 41 (650 West Tower Ave)
• 118,000 sq ft hangar with 50’ clearances at
highest value location in Alameda Point
• 30,000 sq ft short term lease to Deep Ocean
Explorer expires this fall
• Owned by Navy, part of next anticipated phase
of conveyance (“Phase 3C”)
• Navy completing PFAS Remedial Investigation;
expect report by mid-2025
• Anticipate late 2027 conveyance, depending on
PFAS findings
• Staff recommends initiating RFP for long term
lease with purchase option in 2026
View of Building 41 from Ferry Point
Disposition Updates Since 2023:
Building 11, 400, 12 Complex
• On Phase 2 infrastructure loop, has new water
• Building 11 – 110,000 sq ft hangar listed since 2022
• Building 12 – 110,000 sq ft hangar in long term
lease to Saildrone
• Building 400 – 126,000 sq ft hangar partially leased
to Saildrone and Google
• 400 owned by Navy (Phase 3C conveyance)
• Some of complex needs roof replacement; staff
and tenants completing interim repairs as
appropriate
• Staff recommend advancing long term lease and
sale of this complex in 2026-2027 due to building
condition and market interest
Buildings 11 (far end), 400 (middle), and 12 is
not a contributing historic feature due to
construction of Building 400 in the 1950s
Disposition Updates Since 2023:
Bachelor’s Enlisted Quarters
• The BEQ complex consists of five buildings on
21 acres with around 500,000 SF of floor
area, remains largely vacant
• Historically contributing structures and
landscape
• Zoning flexible, allows for residential
• Building 2, south side, is on new water
• Frequently vandalized and requires high
levels of property management
• Due to size, complexity, this will be similar to
development deal vs simple sale
• Staff remain open to offers on this property;
pursue request for interest in 2027
Photo courtesy of Maurice Ramirez
Recommended 2026-7 Disposition Strategy
Work Plan
Continue to implement general goals of 2023 Disposition Strategy with the following specific activities:
• Advance potential sales in the Phase 1 loop of Buildings 92, 7, and lot 101/114 • Building 41: Issue a Request for Proposals for a long-term lease with purchase option • $43 Million: Benchmark sales revenue target from these transactions. Explore other funding and financing options with City Council if this benchmark seems unachievable due to market conditions.
• Lease the other hangars on Monarch Street
• Be open and opportunistic if other offers come along that advance the goals of the Disposition Strategy
Recommended 2026-7 Disposition Strategy
Work Plan Additions
In addition to the core goals pursue the following additional activities:
• Explore potential long term lease & sale of the Building 11/400/12 complex in the Phase 2 loop
• Explore options for the BEQ complex (Buildings 2, 3, 4) in 2027 • Advance negotiations on a new agreement with EBMUD before the current one expires in 2027
Reuse Area Infrastructure Per
EMBUD Agreement
Phase 1
Phase 2
Phase 3
2026-7 Disposition Work Plan
Sold
In Progress
To be Sold
For Consideration
Phase 1, 2, 3 Backbone Infrastructure and
Property Sales Work Plan
Questions / Feedback