721,204-SF Industrial Portfolio Trades Hands

By Natalie Dolce

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Bayside Business Park

San Francisco

Greig Lagomarsino and Todd Severson, SVPs of Colliers International in Oakland, along with Darla Longo and Barbara Emmons of CB Richard Ellis Inc.’s Ontario office recently closed what they are calling the largest industrial investment sale of the year in the San Francisco Bay Area. Sares-Regis Group sold an approximately 721,204 square foot institutional quality industrial portfolio consisting of four class A buildings in Fremont and Richmond, CA. The portfolio was acquired by Industrial Income Trust. This purchase will become part of the Trust’s core product. The sale price was undisclosed. Three of the buildings are located in the Pinole Point Business Park in Richmond and total approximately 474,754 square feet. The buildings were constructed between 1999 and 2001 and are 89% leased to quality tenants such as Bio-Rad Laboratories, Alan Ritchey, contractor with the San Francisco hub of the US Postal Service, and FBA Holdings, a subsidiary of Sears. Pinole Point Business Park is a high image industrial park with expansive glassline, ESFR sprinklers, large truck courts, executive office space, and extensive dock-high loading and yard areas. Units within the business park range from 27,000 to 200,000 square feet. The fourth building is located on Fremont Boulevard in the Bayside Business Park in Fremont and is approximately 246,450 square feet. The facility was built in 1990 and is 100% leased to Supermicro Computer. Past tenants include Compaq Computer, Sony and Nestlé. The building features excellent loading, excess parking, heavy power and a lab and assembly area. The three buildings at Pinole Point Business Park along with 43 acres of adjacent developable land recently traded hands in May of 2008. Sares Regis Group previously acquired the park from the developers, Pinole Point Properties Inc.  Sares Regis plans to retain the 43 acres of land for future build-to-suit developments. “This is a significant transaction and a good sign, institutional investors are back doing business,” says Severson. Approximately 53,830 square feet of industrial space remains available for lease at 2100 Atlas Road in Pinole Point Business Park.

Sacramento

NewMark Merrill Cos., a retail development and full-service property management firm, has been named to lead the management and redevelopment of Southgate Plaza, a 365,000-square-foot retail center in Sacramento. NewMark Merrill will immediately begin a comprehensive repositioning effort for the center. The management assignment is the first for NewMark Merrill in the Sacramento region. Southgate Plaza was once the dominant center located at the intersection of Florin Road and Franklin Avenue, housing such retailers as Wal Mart, Ross, Albertsons and Office Max. Currently, the center is 20% leased, following the departure of several tenants during this challenging economy. Wal-Mart has relocated and opened a new Supercenter just over one mile away, and Albertsons, Office Max and Ross have all closed.

NewMark Merrill’s repositioning efforts will include implementing an aggressive lease up plan for both large boxes and small in-line shops, constructing a new facade, creating new logos and a possible name change. They will also look to address the numerous deferred maintenance issues while reaching out to the County of Sacramento which has demonstrated significant support to the Florin corridor. Marketing and promotions will play a large part in rebranding this asset back to the community. Southgate Plaza is located at two major intersections carrying over 60,000 cars per day and surrounded by over 20,000 in a one mile ring. The former Albertsons is being replaced by a 99 Ranch Market, 28 store regional market chain specializing in Asian communities. They have signed a lease for 65,000 square feet and 15 years. “Southgate Plaza is the type of retail asset which should stand the test of time. It has excellent demographics, on one of the major intersections in Sacramento, and a long track record of being the center of the community,” says Sandy Sigal, CEO and founder of NewMark Merrill Cos.

San Mateo, CA

Pinole Point Business Park in Richmond, CA a 475,000-square-foot industrial park consisting of three warehouse buildings on 30 acres, and Bayside Business Park in Fremont, CA, a 246,500-square-foot industrial office complex, has sold to Industrial Income Trust. Sares Regis Group acquired both properties in 2008. The sale of Pinole Point Business Park did not include an adjacent 43 acres of undeveloped property. Sares Regis Group plans to develop the property over the next three years. The land is entitled for four new warehouse and light industrial buildings totaling 650,000 square feet. The buildings range in size from 42,000 square feet to 250,000 square feet. The development is designed with energy-efficient sustainable features. “Our goal was to stabilize these two properties through aggressive leasing and bring them to full or nearly full occupancy,” says Jeff Birdwell, president of the Commercial Division. “We were able to attract some strong tenants and renew leases with a number of existing companies occupying the projects.” Point Pinole Business Park is 90% leased and Bayside Business Park is 100% leased. Greig Lagomarsino of Colliers’ Oakland office and Darla Longo of CB Richard Ellis’ Ontario office represented both the buyer and seller in the transaction.

Los Angeles

Davis Partners, a local leading commercial real estate services provider, has been awarded the property management assignment for the 255,000-square-foot Grand Avenue Courtyard in El Segundo, CA. The 12-story, institutional quality, class A office tower has brought Davis Partners’ management portfolio total to more than 22 million square feet of office, industrial, and business parks in Southern California. “We are extremely pleased to have been chosen to manage Grand Avenue Courtyard,” says David Rowley, Davis Partners senior director. “This assignment validates our effort toward providing a consistently high level of dedication and service to our institutional clients.” Grand Avenue Courtyard was acquired by a Boston based pension fund advisor focused exclusively on private real estate investments. Grand Avenue Courtyard was constructed in 1987 and recently renovated in 2007. The property’s amenities include an 11-level parking structure and surface parking area, café, fitness facility, koi pond, and a large park area. The property is located in the heart of the Super Block of El Segundo near the 405 and 105 freeways, one mile south of LAX, and within walking distance to the Metro Green Line light rail.

Kennewick, WA

BH Properties has signed Hobby Lobby Stores Inc., an Oklahoma City-based retail chain, to a lease agreement for 60,000 square feet of retail space located at 7011 West Canal Dr. in Kennewick, WA, an area that is known as the retail hub for the southeastern portion of the state.  “With the recent phase of the real estate cycle bringing a wave of store closures and sluggish retail sales, communities have grown all too familiar with shuttered locations and empty stores.  BH Properties is pleased to bring Hobby Lobby, a thriving retail company, to this excellent Kennewick location,” says BH Properties executive vice president Steve Jaffe. BH Properties has secured a 10-year commitment from Hobby Lobby to occupy the former location of GI Joe’s, a regional sporting goods and automotive parts seller operating in the Western US. Hobby Lobby anticipates opening in late October. Bill Hardy, BH Properties VP of asset management and Leasing, negotiated for the firm with Connie Wilde with CBRE Seattle and Scott Hagan of David Hicks & Lampert negotiated on behalf of the tenant. 

Seattle

DCT Industrial Trust Inc. has awarded Grubb & Ellis Co. the management assignment of seven class A industrial properties offering a total of 1.1 million square feet space throughout the Seattle market. The management assignment follows DCT Industrial’s selection of Grubb & Ellis’ Matt McGregor, senior vice president of the industrial group, Bill Condon, executive vice president, managing director, and Andrew Hitchcock, vice president of the industrial group, as the leasing agents of the property in May. Heather Nix, senior property manager, and Lee Wallis, senior vice president, managing director, will lead the management assignment. “DCT Industrial’s selection of Grubb & Ellis to manage as well as lease this outstanding portfolio speaks volumes of the well-integrated services we provide clients,” says Nix. “We look forward to supporting such a highly regarded industrial owner like DCT Industrial, while working with the leasing team to keep the portfolio at its high standing within the marketplace.” The portfolio is 95% leased and consists of four properties in Kent, including O’Brien Business Park, a 182,000-square-foot building located at 6804 212th St. The park is anchored by BarclayDean Environments, a workspace furniture manufacturer, and is within close proximity to Highway 167 and Interstate 5. The other three properties in Kent are: The Van Doren’s Landing Shaw Industries building, located at 22408-22620 64th Ave. S, which is anchored by Shaw Industries and offers approximately 192,000 square feet of space; The 183,000-square-foot Van Doren’s Landing Sea-Pac Building, located at 6215-6307 S. 228th St., which is fully occupied by multiple tenants, including Sea-Pac Sales Co. and Cronin and Co.; and Seattle Bike Supply building, located at 7620 S. 192nd St., which offers 66,500 square feet of space is fully occupied by Seattle Bike Supply. The portfolio also includes two assets in Algona, Algona Business Park Buildings A and B. Located at 1150 Industry Dr. N., Building A offers nearly 100,000 square feet of space. Building B is located at 840 Industry Dr. N. and consists of nearly 200,000 square feet of space. The portfolio also includes 800 S.W. 27th St., Renton, a 182,000-square-foot building fully occupied by Trojan Lithograph. 

Categories: West, Industrial, Acquisitions/Dispositions, San Francisco