X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN LEANDRO, CA-Service West has acquired a 132,000 square-foot warehouse from Five Star Investment Co. for $11 million or $83 per square foot, according to the listing brokerage firm, CB Richard Ellis.

Service West is an independent contract furniture installation company. It will use the building to consolidate operations currently spread among three buildings totaling 200,000 square feet.

CBRE says the move to 2054-2070 Burroughs Avenue in San Leandro allows them greater flexibility as well as reduced overall cost. The purchase will allow Service West the option of future expansion while also reducing its overhead by over 30%.

“The purchase…will allow Service West the option of future expansion and reduce their overhead by over 30%,” states CBRE. “Service West’s current pallet capacity in its three existing warehouses is 8,000 pallet positions due to low clear height buildings. The new Burroughs Avenue warehouse with the high clear height will allow a capacity of 13,000 pallet positions.”

CBRE senior vice president Michael Barry brokered the purchase. The seller was represented by Rich Sutherland of The Sutherland Co.

Service West was able to use a new program within SBA financing allowing an ownership to double the allotment of funds to $4 million provided the new facility can demonstrate a reduction on energy efficiency of a minimum of 10% from its existing facility, says CBRE. The property has already demonstrated a 30% energy savings, allowing Service West to tap into the SBA financing through TMC Development in San Francisco and along with Service West’s new lending partner, Bank of America.

The 22.6 million square-foot San Leandro industrial market posted a second quarter vacancy rate of 7% and a total availability rate of 11.6%, according to CB Richard Ellis. The average asking rate for warehouse space was $0.41 per square foot per month. Asking rates have fallen approximately 9% from the first quarter.

In other East Bay industrial investment news, LRF properties recently sold two neighboring industrial buildings in nearby Hayward, CA totaling 66,612 square feet for $5.5 million, which also works out to $83 per square foot. The buyer was Wallace Lee, dba Wigs America. The buildings are located at 27279-27317 Industrial Boulevard. Jay Hagglund and Sam Higgins with NAI BT Commercial Oakland represented LRF.

The latest East Bay industrial leasing news is that Guardian Logistics Group has made a long-term commitment to 115,000 square feet of a 220,000 square-foot, cross-docked building at 2399 West Winton Avenue in the Hayward Crocker North Industrial Park in Hayward, CA. the building was originally used as Mervyns Headquarters. It has also been occupied by Kimberly Clark. Most recently, it housed Restoration Hardware. Greig Lagomarsino and Casey Ricksen with Colliers International in Oakland represented the tenant.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.