Recommendation to Approve Sale of 650 West
Ranger Avenue (Building 92) at Alameda Point
to Ernst Development Partners, Adopt a Site-
Specific Surplus Land Act Exemption Resolution,
and Introduce an Ordinance Approving the
Purchase and Sale Agreement
April 21, 2026
1 Staff Recommendation
1) Hold public hearing to consider adoption of a site-specific resolution declaring the property located at 650 West Ranger Avenue (Building 92) at Alameda Point to be exempt surplus land under the California Surplus Land Act.
2) Introduce an ordinance approving the Purchase and Sale Agreement for the sale of Building 92 to Ernst Development Partners, Inc. 3) Authorize the City Manager to execute the Purchase and Sale Agreement and related documents necessary to complete the transaction.
2 • Address: 650 West Ranger Avenue
(Alameda Point, Building 92)
• Building Size: ~89,000 SF, single-story
warehouse building
• Site area: ~3.56-acre site in Adaptive
Use Area
• Built: 1942 (historic WWII-era
structure)
• Tenancy: Currently vacant
• Sale Structure: Fee Simple, “AS-IS”
Building 92 Overview
3 Underutilized Asset that Requires
Significant Rehabilitation
4 Building exterior showing
significant deterioration,
including peeling paint, broken
windows, and water damage
Broken and leaking
windows along the
roofline. City will
conduct emergency
repairs as needed.
• Underutilization
Building is currently vacant and not
generating revenue.
• Significant Rehabilitation Needs
Property requires major repairs and
upgrades, including the roof, building
systems, and other capital improvements.
• Ongoing Cost to the City
The City continues to incur maintenance,
insurance, and other holding costs.
Sale Implements City’s Redevelopment and
Infrastructure Funding Strategy
5 • Funding Strategy – The City’s approach to
financing backbone infrastructure in the
reuse area is through property sales.
• Phase 2 Loop – Revenue from Phase 1
property sales will help fund the Phase 2
infrastructure loop, which is estimated to
cost $43 million.
• Building 92 – Building 92 is one of the Phase
1 properties prioritized for sale.
• City Priority – The City’s priority is to
achieve the highest possible sales price.
5 92
114 /
101
7 4111 12400
24 Owned by Navy
Considering for Sale
Reprioritization
Sold
Recommended for
Sale, 2023
Reuse Area Infrastructure Phasing & Building Sales
• Dec 5, 2024: Request for Proposal to
Purchase Building 92 Advertised
• Apr 1, 2025: Multiple qualified
proposals received
• Apr 24, 2025: Proposals evaluated
based upon selection criteria in RFP
• Aug 15, 2025: Interested buyers
submit “best and final” offers
• Sep 16, 2025: City Council discussed
price and terms for offers received in
response to the RFP; directed staff to
negotiate with highest bidder
Buyer Selection Process
6 Competitive Process Identified Highest-Value Buyer
Proposal
• Proposals evaluated based on criteria outlined in the RFP , including:
• Purchase price (most important)
• Financial capacity
• Relevant adaptive reuse experience
• Feasibility of business plan and timeline
• Financial capacity reviewed by Keyser Marston Associates (KMA), the City’s land use economic consultant
• Structured evaluation conducted by staff, city’s real estate brokers, advisors • Process identified highest-value and most qualified proposer 7 Ernst Development Partners Offers Highest Purchase Price, Experience, and Capacity • Highest Purchase Offer: $7.825M all-cash offer
• Strong Financial Capacity*: Strongest financial terms among all bidders • Extensive Adaptive Reuse Experience: Delivered adaptive reuse at Buildings 9 & 91, now home to Kairos Power, Firebrand, Almanac, and Admiral Maltings • Comprehensive Redevelopment Plan: Full rehabilitation including seismic and structural upgrades, hazardous material abatement, and new utilities • Supports Economic Development Goals: Sale will enable rehabilitation and activation of the building for uses permitted under applicable zoning and City regulations
RECOMMENDED BUYER –
Ernst Development Partners
8 *Financial strength evaluated by Keyser Marston Associates. • Purchase Price: $7.825 million, all-cash
• Sale Condition: City to sell property sold “as-is”
• City Contribution: No City subsidy or financial contribution; therefore, the City’s Project Stabilization Agreement does not apply.
• Transaction Costs: Sale proceeds will be reduced by closing costs, transfer taxes, title and escrow charges, and broker commission
• Other Costs: City must pay Alameda Point Collaborative $500,000 within 30 days after closing of the Building 92 sale, per RESHAP DDA
• Use: Future building use to be determined by Buyer; subject to applicable zoning and City requirements.
• CEQA Compliance: Buyer is responsible for any required CEQA review associated with a future proposed use.
• Infrastructure: Buyer to complete W. Ranger Ave frontage improvements, per the MIP Key Terms of Sale
9 Transaction Structure –
Path from Approval to Closing
10 If approved, the transaction will proceed through the City’s approval process:
• Council Approval Process: California Surplus Lands Act resolution and ordinance required to authorize the sale
• Purchase and Sale Agreement: City Manager executes after City Council approval of transaction
• Feasibility Period: Buyer completes due diligence after PSA execution • Buyer Option: Buyer elects to proceed with transaction upon due diligence • Public Improvements Agreement: Public Improvement Agreement required prior to closing
• Closing Timeline: Closing occurs after the feasibility period, subject to closing conditions.
California Surplus Land Act
11 Seaplane Lagoon
Waterfront Park
Prior to selling or entering into a long-term lease on land owned by the City, the California Surplus Land Act requires the City to declare the land "surplus land" or “exempt surplus land" with written findings.
The recommended resolution declares that the property located at 650 West Ranger Avenue, which consists of an approximately 89,000 square foot building on approximately 3.56-acres, is “exempt surplus land” under the Surplus Land Act.
Staff have coordinated with California Housing & Community Development to ensure they are aligned with this approach.
Staff Recommendation
1) Hold public hearing to consider adoption of a site-specific resolution declaring the property located at 650 West Ranger Avenue (Building 92) at Alameda Point to be exempt surplus land under the California Surplus Land Act.
2) Introduce an ordinance approving the Purchase and Sale Agreement for the sale of Building 92 to Ernst Development Partners, Inc. 3) Authorize the City Manager to execute the Purchase and Sale Agreement and related documents necessary to complete the transaction.
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