Terreno Realty Pays $186M for Bay Area Industrial Asset
Meta is one of the tenants at the four-building property.
Building 4, the largest at Morton Commerce Center in Newark, Calif., is occupied by tech giant Meta. Image courtesy of CommercialEdge
Terreno Realty Corp. has acquired the Morton Commerce Center in Newark, Calif., for $186 million.
Torrance, Calif.-based Overton Moore Properties was the previous owner of the industrial facility, with Cushman & Wakefield serving as leasing manager and broker, according to CommercialEdge data.
The complex comprises four industrial distribution buildings totaling approximately 603,000 square feet. Situated on 30.5 acres at 7355-7395 Morton Ave., the project sits adjacent to Interstate 880, California State Route 84 and the Dumbarton Bridge, the southernmost highway bridge crossing San Francisco Bay.
Four tenants—Facebook parent Meta, Lucid Motors, Pegasus Logistics Group and RK Logistics Group—hold leases at the property expiring between 2026 and 2032, according to CommercialEdge and a statement from Terreno. Lucid Motors, which occupies Building 1, is marketing a sublease for the entirety of its 161,680-square-foot space. Buildings 2 and 3, which are leased by Pegasus Logistics and RK Logistics, total 217,437 square feet, while Meta-occupied Building 4 is the largest, totaling 225,679 square feet. The asset’s estimated stabilized cap rate is 4.6 percent.
The site features 86 dock-high and eight grade-level loading positions, as well as parking spaces for 730 vehicles. All four buildings were completed in 2020.
In addition to the San Francisco Bay Area, Bellevue, Wash.-based Terreno acquires, owns and operates industrial real estate assets in five U.S. coastal markets: Los Angeles, Seattle, Miami, Washington, D.C., and the New York City metropolitan region, including northern New Jersey.
The acquisition price accounts for marking assumed debt to market, as well as the buyer’s due diligence and closing costs, estimated near-term capital expenditures and leasing costs necessary to achieve stabilization, according to Terreno’s statement.
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