Kaiser Permanente Scraps Plans for $900M Oakland Headquarters
Kaiser Permanente announced March 25 it has cancelled plans to build a $900 million headquarters facility in Oakland, Calif. The project, which would have been the largest office building in Oakland, was going to be called Kaiser Permanente Thrive Center.
"Delays and increasing costs related to this project caused us to re-examine the feasibility and focus on renovating our current buildings," Kaiser Permanente said in a statement. "The decision is not related to COVID-19."
The healthcare provider has no plans to restart the project at a later date, says Kaiser spokesperson Kerri Leedy.
Oakland Mayor Libby Schaaf said in a statement the decision to pull out of the project is a “pivot for Kaiser, and one that makes sense” for their organization and members. "They’re reinvesting and improving their existing sites across the city, so the most important fact is that they’re staying rooted right here in Oakland," she said.
Developer Lane Partners of Menlo Park, Calif. was planning on breaking ground this year on the project and expected to complete construction in 2023.
Kaiser was going to consolidate its operations from seven other satellite facilities into the new headquarters. By reducing the number of properties leased and owned, Kaiser said it looked to save about $60 million a year.
The project was planned for the city’s Uptown neighborhood, across from the Paramount Theatre and a block from the 19th Street BART entrance. In addition to housing corporate offices for Kaiser, the building was to include doctors’ offices, health-education classrooms, community meeting space, and more. Kaiser, the largest employer in Oakland, said the project would have been home to about 7,200 employees.
Before Kaiser showed interest in the Lane Partners’ new development in Oakland, the project was going to be a retail / office building called “Eastline.” It is unclear whether the Lane Partners will resurrect Eastline now that Kaiser exited. The developer did return a call for comment.