OAKLAND (AP) — Health care provider Kaiser Permanente will invest $900 million to buy land and build an office tower in Oakland that will be the largest in the city, company officials announced Monday.
The company will break ground next year on the 1.6 million-square-foot, 28-story building in Oakland’s Uptown neighborhood, Kaiser said.
“For more than seven decades, Kaiser Permanente has been proud to call Oakland our home, and today we further strengthen our commitment to this incredible city,” said Bernard J. Tyson, chairman and CEO of Kaiser Permanente.
Oakland Mayor Libby Schaaf said the company, which was founded in Oakland in 1945, received no tax incentives. The company, which is Oakland’s largest employer, bought the land for the project from the city at market rate and that “they are paying their full freight,” she said.
“To know that Kaiser has committed to us and will build their new headquarters in the heart of Oakland’s downtown shows the world that as Oakland grows, our values can scale up with us,” Schaaf said in a statement.
The new building will generate a one-time $23 million economic benefit in addition to more than $15 million annually in local tax revenues for the city, according to site developer Lane Partners, officials said.
Kaiser will consolidate 7,200 employees from seven offices into the new tower, which will save it $60 million annually, officials said.
Once construction is completed, those existing buildings that Kaiser Permanente owns will be acquired by local developer Lane Partners for renovation and commercial use, they said.
The tower, dubbed “Kaiser Permanente Thrive Center,” is expected to be completed by 2023.