Dermody Properties Plans Major Industrial Build in Bay Area
The investor has acquired 49 acres in the North Bay to build a 700,000-square-foot, five-building industrial facility.
Dermody Properties has acquired a 49-acre land site in Fairfield, a city in the North Bay. The investor plans to build a 700,000-square-foot, five-building industrial facility on the site. The project will break ground this year, and it will deliver in the third quarter of 2022.
Dermody has branded the property the LogistiCenter. The five-buildings will range in size from 82,620 square feet to 259,200 square feet with class-A features, like 32-foot to 36-foot clear heights, a minimum of 50-foot by 50-foot column spacing, ample car and trailer parking and ESFR sprinklers. The properties also have easy access to the San Francisco, Oakland and Sacramento International Airports as well as the Ports of Richmond, Oakland and Stockton.
The property will target last-mile and logistics users. It is already available for pre-leasing, which is being managed by Matt Bracco, Glen Dowling and Chris Neeb of JLL.
Dermody was attracted to Fairfield not only because of its proximity to the Bay Area, but also because the city is business-friendly with a strong labor pool and rents about 40% less expensive than other markets along the 880 corridor, according to George Condon, West Region Partner at Dermody Properties.
In June, Dermody Properties closed its third commingled fund, the Dermody Properties Industrial Fund III. The fund, known as DPIF III raised $1.1 billion, exceeding its target fundraising goal of $800 million. It has a diverse pool of investors, including public and corporate pension funds, insurance companies and other institutional investors. Dermody says nearly all of the investors from its first and second fund investors committed to DPIF III. In addition, there were significant new investors.
Through the fund, Dermody will acquire, develop and operate class-A, logistics-focused properties throughout significant population centers and critical hubs in the United States. The fund will invest in both single-property and portfolio acquisitions. It will also pursue development opportunities.