LBA Buys 1M SF of Leased Industrial Property in NorCal
By Morris Newman
OAKLAND, CA-In a set of transactions that highlights the appeal of fully leased industrial buldings to investors, San Diego-based LBA Realty has closed on four industrial sales totaling more than one million square feet. The sales occurred in Hayward, Lathrop, Tracy and San Jose, all in northern California.
The sales took place in two distinct markets of Northern California: the highly urbanized 880 Corridor, which includes Oakland and San Jose, and the more suburban/exurban San Joaquin Valley, the location of Tracy and Lathrop.
Michael Goldstein of Colliers International, who worked on two of the sales, says the relationship of the San Joaquin Valley to the Bay Area is similar to the relationship of the Inland Empire to Los Angeles and Orange counties.
“The Valley has logistics-based users, rail connections, and a transportation network,” he says. “Here you can find big box buildings that you can’t find on the 880 corridor,” he adds. “The land economics don’t permit it.”
The largest of the deals was the 517,458-square foot warehouse with 38 acres of land in the Stonebridge Industrial Park in Tracy, CA. The seller was OSH Properties LLC, which currently occupies the property on a long-term lease.
By itself, the Stonebridge sale was one of all warehouse/distribution sales in the Bay Area this year, according to Colliers International. Goldstein and Gregory O’Leary of Collier’s Stockton office, plus Greig Lagomarsino of the firm’s Oakland office all represented the buyer.
The next largest sale was in Lathrop, where LBA bought 401/501 Nestle Way, a 271,040-square-foot class A warehouse/manufacturing facility in the Crossroads Commerce Center. The building is currently leased to AMCOR PET Packaging. Goldstein and Gregory O’Leary of Colliers’ Stockton office handled the transaction.
For more of the Globe Street article click here.
The Peninsula Industrial Pros 