Category Archives: Recent Sales

Kidder Mathews Industrial Team Sells Burlingame Warehouse

Comp Details:

Address:   1616-1636 Gilbreth Road, Burlingame, CA

Seller:    Max Hansen & Sons

Buyer:   Kael Foods

RBA SF:  30,000

Lot size:  1.62 AC (70,567 SF)

Selling price:  $4,375,000 ($145.83/SF)

Type:  Industrial – Distribution Warehouse

This was an owner/user purchase.  The new owner plans on renovating the rear unit, while there are two tenants currently occupying the two front spaces.

Lextec Components Purchases Distribution Bldg for $3.4M

Comp Details:

Address:   2345 Paragon Drive, San Jose, CA

Seller:    Stella Capital

Buyer:   Lextec Components

RBA SF:  36,704

Lot size:  1.78 AC (77,536 SF)

Selling price:  $3,400,000 ($92.63/SF)

Type:  Industrial – Distribution Warehouse

This was an owner/user purchase.

Lehman Bros. Sells Warehouse Portfolio to ProLogis, Blackstone

Industrial Portfolios Are Becoming Harder to Find For Investors As Warehouse Market Conditions Improve

By Randyl Drummer
A partnership controlled by Lehman Brothers Holdings Inc. has closed the sale of a 17.7 million-square-foot industrial portfolio of properties located primarily in Reno and Las Vegas, NV, Central Pennsylvania and southern New Jersey.

The portfolio was sold in separate transactions to two buyers, with affiliates of Blackstone Real Estate Partners VII acquiring the Reno assets, which will be managed by IndCor Properties, Blackstone’s national industrial portfolio company. Prologis Inc., an existing partner with Lehman, acquired the Pennsylvania, Las Vegas and New Jersey properties.

Industrial is surging and many owners have opted to hold rather than sell. Those few warehouse portfolios that investors haven’t scooped up yet are drawing intense interest, and M&A activity in the space is strong and getting stronger. This week, Brookfield Property Partners agreed to buy Atlanta-based Industrial Developments International Inc. (IDI) for $1.1 billion.

Lehman and Prologis had reinvested in the their portfolio to stabilize both the properties and their capital structure since acquiring it jointly in 2007. The decision to monetize the portfolio today enables Lehman “to capitalize on strong demand for high-quality industrial product and deliver significant value to its stakeholders,” the company said in a statement.

Brickman Equity Purchases SF Office Building

Comp Details:

Address:   550 Kearny, San Francisco, CA

Seller:    Montgomery Capital/Highridge Partners

Buyer:   Brickman Equity

RBA SF:  196,630

Lot size:  0.50 AC (21,780 SF)

Selling price:  $75,500,000 ($383.97/SF)

Type:  Office

 

Roxy Trading trades up for Distribution Building

Comp Details:

Address:   33430 – 33436 Western Avenue, Union City, CA

Seller:    Tulloch Construction

Buyer:   Roxy Trading, Inc.

RBA SF:  48,080

Lot size:  2.37 AC (103,107 SF)

Selling price:  $3,950,000 ($82.15/SF)

Type:  Industrial -Warehouse

Apparently Tulloch Construction will do a sale/leaseback of some of the office space and Roxy will occupy the balance of office and warehouse.  The building has 20′ clear height and 8 dock high loading doors.

Burlingame Office Trades for $18.7M

Comp Details:

Address:   1633 Bayshore Hwy, Burlingame, CA

Seller:    ATC Partners

Buyer:   Hanhai Investments, Inc.

RBA SF:  104,610

Lot size:  4.52 AC (196,891 SF)

Selling price:  $18,700,000 ($178.76/SF)

Type:  Class B Office

According to the buyers website:  Hanhai Investment established its first high-tech Silicon Valley incubator (Hanhai Z-Park) in 2012. Due to the consummation of Hanhai Z-Park, Hanhai Investment will continue its success in the Silicon Valley by establishing two more incubators by 2017, focusing on biopharmaceuticals, clean tech, and new materials.

It looks like this may be a strategic play for them to eventually take over the building for their own expansion purposes.  The building was 88% occupied at time of sale.

Milpitas Industrial Building Sells for $8.1M

Comp Details:

Address:   345 Los Coches St, Milpitas, CA

Seller:    iStar Financial Inc.

Buyer:   Topaz RE Investors, Inc.

RBA SF:  44,800

Lot size:  3.94 AC (171,626 SF)

Selling price:  $8,107,139 ($180.96/SF)

Type:  Industrial -Warehouse

All cash purchase.  The building was vacant at time of sale.

Brisbane Warehouse Trades for $135 /sq foot to Investor

Comp Details:

Address:   480 Valley Drive, Brisbane, CA

Seller:    San Bruno Associates

Buyer:   William Spencer Co.

RBA SF:  22,160

Lot size:  1.27 AC (55,321 SF)

Selling price:  $3,434,800 ($135.38 /PSF)

Type:  Industrial -Warehouse

 

The property was being marketed for sale at $155/psf or for lease.  The property features 22′-24′ clear height, fully sprinklered with 2 docks and 2 grade level doors, a fenced yard and heavy power.

Hayward Industrial Attracts Alpha Magnetics

Comparable details:

Address:   23453 Bernhardt St., Hayward, CA

Seller:    JRM Real Estate & Investments LLC

Buyer:   Alpha Magnetics, Inc.

RBA SF:  9,898

Lot size:  0.50 AC (21,780 SF)

Selling price:  $1,100,000 ($112.14 /PSF)

Type:  Industrial -Warehouse

 

16′ clear height with heavy power.  This was an owner/user transaction.

JV Makes 57-Acre Land Buy for Development

By Natalie Dolce

SAN FRANCISCO, CA-Trammell Crow Co. and joint venture partner Principal Real Estate Investors have purchased a 57-acre land site fromCisco Systems Inc. located near the existing Cisco campus in North San Jose, CA. According to a prepared statement, the venture is evaluating a number of opportunities on the land, including speculative industrial development, land parcel sales and build-to-suits.

Rob Shannon, SVP with CBRE in San Jose, CA represented the joint venture in the deal. The project marketing team will also include Chip Sutherland, SVP with CBRE in San Jose, CA.

Shannon tells GlobeSt.com that this is an opportunistic land purchase at a favorable basis in a high barrier to entry market. “We see it as a once in a decade opportunity to find a sizable land parcel in a desirable infill location. The flexible zoning will allow for the owner, a joint venture between Trammell Crow and Principal Real Estate Investors, to pursue a full range of uses including office, R&D and industrial,” he says. “We are working on a phasing plan which will address user demand in each sector.”

The site is highly visible from and accessible to Highway 237. With proximity both to the San Francisco Peninsula and to the 880 Corridor leading to the Port of Oakland, it is the only available industrial site of this magnitude in Silicon Valley and will be the first modern class A industrial facilities developed in San Jose in the past 15+ years, according to a statement.

According to a previous GlobeSt.com article, there is growing demand for large manufacturing and warehousing facilities as multinational technology firms expand aggressively and attract suppliers to the region.

To read entire GlobeSt article click here.

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