Rare 10-Acre Industrial Site Trades Hands in Oakland
The Farallon Industrial and Logistics Center, a 260,989 square foot warehouse in San Leandro, has been sold to Sagard, making it the largest industrial sale in the Oakland submarket in the past five years, according to CBRE research. Plus, the rare land circumference makes the asset appealing.
Industrial leasing activity surged in the Oakland market during the third quarter of this year, according to CBRE, which executed the sale, driven by several large leases exceeding 100,000 square feet, with three deals surpassing 200,000 square feet.
Located at 2009-2013 Farallon Drive, the site sits on 10.83 acres with an adjacent 1.43 acres used for truck parking. It is also fully leased between two tenants in the beverage and energy tech industries.
According to CBRE Research, of the 19 remaining existing industrial properties that sit on more than 10 acres, eight (nine at time of sale) are owned by private landlords or owner-users.
The other 10 are operated by national investment institutional groups, such as Prologis, LINK-Blackstone, Principal Financial Group, etc. The eight that remain offer fewer features than Farallon Industrial.
“Only three could potentially be made available for sale at some point in the future,” Chris van Keulen, senior vice president at CBRE, told GlobeSt.com.
“This is one of the few remaining 10+ acre sites with an existing building and site improvements that can continue to serve not only the traditional logistics and warehouse occupier base, but also the growing advanced technology manufacturing sector.”
Oakland Industrial Market Mixed on Performance
Not including new construction product (built 2000 to present), most of the industrial supply in San Leandro was built between the 1940s and 1960s. For its respective size (260,000 square feet on 12+ acres) and functional attributes, Farallon Industrial & Logistics Center is the newest existing asset in the market, having been built in 1971.
Farallon Industrial provides the corporate image coupled with the in-place infrastructure for emerging technology companies such as robotics, auto tech, energy tech and logistics.
CBRE’s Chris van Keulen, Bob Ferraro, Michael Barry, and Rebecca Perlmutter Finkel represented both the seller and buyer.
“The deal points out that a well-located industrial product located in the South 880 highway corridor market is doing well,” Dick Sullivan, senior vice president of the industrial division at TRI Commercial Real Estate Services/CORFAC International, told GlobeSt.com.
“On the other hand, the Oakland Industrial market activity has declined slightly over the past six months, with lease and sale rates dropping 5% to 10%. However, we expect the market will rebound shortly after the holidays.”
Source: GlobeSt/ALM