Bridge Industrial Buys Bay Area Portfolio for $134M

2350 Qume Drive.

Bridge Industrial has acquired three properties—totaling 380,510 square feet—in San Jose, Calif., for $134 million, public records show. Multinational medical technology manufacturer Becton Dickinson & Co. was the seller. County records also indicate that the sale was subject to a $81.2 million loan, provided by Invesco at a variable interest rate.

Bridge acquired the properties at 2150 Commerce Drive, 2222 and 2350 Qume Drive—a mix of office, manufacturing and life science space. The largest of these is the 1979-built 2350 Qume Drive, comprising 237,570 square feet of life science space and a 10,000-square-foot industrial component. BD has owned the building since 1987, CommercialEdge data shows.

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The office building at 2222 Qume Drive totals 81,000 square feet and was constructed in 1984. BD acquired the property in 2006. The building located at 2150 Commerce Drive is a 61,940-square-foot industrial asset, bought by BD in 2010 for $7.5 million, according to CommercialEdge.

The surrounding area is home to other life science, manufacturing and technology firms. Major nearby thoroughfares include interstates 680 and 880, both within 3 miles of the properties. San Jose International Airport is roughly 4 miles away, while the downtown area is within a 7-mile radius.

2150 Commerce Drive

BD and one of its business units, BD Biosciences, occupy the transacted buildings. Records filed with the county show that BD will continue to occupy the buildings under a lease agreement for the time being. However, in the long term, Bridge is considering tearing down the existing assets to build a 700,000-square-foot industrial project comprising four buildings, according to the Silicon Valley Business Journal. The project is in its earliest stages, with no formal proposals submitted yet.

Growth in core markets

In an interview with Commercial Property Executive, Steve Poulos, Founder & CEO of Bridge Industrial, recently said that the company is seeking new acquisition and development opportunities in all its core markets. Poulos mentioned that among primary criteria for these markets is access to large population bases, enabling growth for e-commerce and cold storage tenants.

If approved, the San Jose project will be Bridge Industrial’s third in the Bay Area, CommercialEdge data shows. The developer is also constructing a 388,240-square-foot industrial facility in Milpitas, at 205 N. McCarthy Blvd., as well as a 534,208-square-foot project in Oakland, at 5441 International Blvd.

Recently, the developer announced plans for other massive projects across the U.S. In metro Chicago, Bridge is planning to construct a 1.5 million-square-foot campus in the O’Hare submarket. Bridge acquired an 86-acre site from Navistar, which will cease operations at the site in November. In New Jersey, Bridge announced plans for a 1.7 million-square-foot speculative project, the second phase of its Phillipsburg campus, slated for a 2022 completion.