CBRE Closes Bay Area Industrial Sale

By Ariela Moraru

2300 Polvorosa Ave., San Leandro, Calif.

CBRE has arranged the $12.5 million sale of an industrial warehouse in San Leandro, Calif., on behalf of the seller, Heldig LLC. Maple Leaf Realty represented the buyer, 4 FACEB Investment LLC, which owns ASA Trading Inc., a supplier of food-related products.

Located at 2300 Polvorosa Ave. on nearly 4.2 acres, the freestanding warehouse has housed Intertile Stone for the past 20 years. The 75,414-square-foot asset has three dock spots and a four-ton bridge crane system running the length of the building. Just off Interstate 880, the warehouse is within a mile from the Oakland Airport and a 15-minute drive from the Port of Oakland.

“The buyer had a strong interest in keeping their operations in San Leandro and owning its facility rather than leasing in this tough rental market with the submarket of Oakland/San Leandro at a historically low vacancy rate hovering around 1 percent,” said Michael Barry, senior vice president at CBRE, in prepared remarks. “The property received strong interest from multiple buyers that created a competitive environment resulting in a record high price for a warehouse building.”

Barry and Senior Vice President Bob Ferraro represented the seller. CBRE also arranged leasing for San Leandro’s first new industrial development in the last 15 years, Comstock Industrial Center.

Logistics market

Demand for top-quality warehouses and distribution centers continues to outpace supply, as e-commerce gains ground. Oakland had the fourth biggest prime logistics rent gain of the past year globally at 9.4 percent, according to CBRE’s second-annual Global Industrial & Logistics Prime Rents report. Seattle came in first at 16.9 percent. Two U.S. markets are among the 10 most-expensive markets in terms of rents: Oakland was ninth with an $8.73 per square-foot price, while Los Angeles/Orange County was 10th at $8.52.

Image courtesy of CBRE