By Jon Peterson
The industrial market across the Northern California region continues to be strong as vacancies reach new lows and availability of properties for sale diminishes. However, one private ownership group has brought to the market a vacant industrial property in San Jose located at 750 Story Road at the offering price of $15 million according to the investment overview of the property.
The seller has chosen San Francisco-based Ida Group of Marcus & Millichap to be the listing agent on the property. The lead person leading the marketing efforts on the sale is Jeffrey Ida, a first vice president with the company. Marcus & Millichap declined to comment when contacted for this story.
The parcel for the property has a total of 169,971 square feet of land, and the property is vacant with no lease encumberances. The building also has an office component in the property, which is 9,732 square feet. Historically, this part of the asset had been the home of a local radio station KLIV-AM.
The total size of the property’s parcel is 3.9 acres. It has a current zoning for industrial park use, according to the property’s offering document, which may give the new owner a wide variety of potential uses in the future. These include industrial, research and development, manufacturing and office uses.
There will likely be two types of buyers/investors that could be interested in the property. One would be a developer looking to create a new property for the marketplace. The other may be an industrial user that is in the market for additional yard space for its products.
The location of the property is attractive to move assets around the Bay Area on a regional basis. The asset is at a junction that is very near both highways 280 and 101.
The San Jose industrial market continues to show very strong market characteristics, according to the property’s offering document. The market has a total square footage of 196.9 million square feet in a mixture of logistics, specialized industrial and flex space. The overall vacancy rate in the market is 5.9 percent. The 12-month rental rate growth has been 2.9 percent.
CORRECTION: An earlier version of this story indicated that the asset size was 170,000 square feet, when in fact, that is the size of the parcel. We apologize for any misrepresentation.