Sares Regis Signs 117,000-SF Build-To-Suit Lease
RICHMOND, CA-Sares Regis Group of Northern California has signed a 15-year lease for a 117,000-square-foot build-to-suit industrial building on 10 acres at Pinole Point Business Park here. SRGNC declined to reveal the tenant’s identity to GlobeSt.com, but industry sources report that the tenant is Whole Foods and will be using the site as a distribution facility. Construction is underway on the building, and completion is planned for early next year.
“This build-to-suit transaction is the first building in our second phase of redevelopment at Pinole Point Business Park,” said Jeff Birdwell, president of SRGNC’s commercial division, in a prepared statement. “It’s a terrific inaugural transaction for our 40-acre final phase.”
As GlobeSt.com previously reported, in September 2010 Sares-Regis sold an approximately 721,204-square-foot institutional-quality industrial portfolio consisting of four class-A buildings in Fremont, CA, and here to Industrial Income Trust. Three of the buildings were located in the Pinole Point Business Park and totaled approximately 474,754 square feet. Birdwell tells GlobeSt.com that SRGNC still manages those buildings although they are under separate ownership.
Birdwell also tells GlobeSt.com that build-to-suit opportunities are becoming more common with industrial tenants. While most industrial owners and developers have elected to avoid speculative product, they are actively seeking build-to-suit opportunities. Birdwell adds that SRGNC is currently actively negotiating with another tenant who could not be named for a significant-sized build-to-suit. “It does seem to be a pulse of activity in the industrial marketplace now.”
The master-planned business park has 30 acres remaining for development at the intersection of Atlas Rd. and Giant Highway. The project offers a prime location and is in close proximity to Interstate 80 and the entire San Francisco Bay area. SRGNC has owned the property since 2008 and is developing the second phase with approval to build more than 650,000 square feet of warehouse, distribution or manufacturing space. Approximately 530,000 square feet remain available for lease, sale or build-to-suit in the park. New development opportunities range from 41,000 square feet to 250,000 square feet.
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