By Meghan Hall
Just six months after hitting the market, an almost inconspicuous research and development property in the rapidly growing town of Dublin has gained one of the world’s largest companies as its new owner. According to sources familiar with the transaction, Amazon has purchased 5160 Hacienda for $50 million, or just under $248 per square foot. The seller of the property was New York City-based Gramercy Property Trust and Fort Worth, Texas-based TPG Real Estate.
The pair of firms initially purchased the property as part of a larger, $187.5 million joint venture back in 2016. For 5160 Hacienda specifically, the two companies paid $36.2 million, or about $180 per square foot. Gramercy contributed all of the assets for the venture—which totaled 980,825 square feet over six properties—and maintained 25 percent ownership in the properties. Gramercy made a $16 million equity investment in the venture. Brokerage firm Newmark Knight Frank began marketing the property for sale in October of 2019.
5160 Hacienda is a one-story research and development property and is currently 100 percent leased to Carl Zeiss Meditec. In all, the building totals 201,620 square feet of office, R&D and warehouse space. Carl Zeiss, according to previous reporting by The Registry, will occupy the property through June of 2021 and will vacate the property at the end of their lease term. With Carl Zeiss moving out, the property becomes a prime asset for an owner/user occupant such as Amazon.
The building was constructed in 1997 and includes 622 parking spaces along with 9 loading docks and four roll-up doors. The property is also well-located, with immediate access to Dublin Crossing, Dublin’s largest multifamily development, as well as Persimmon Place and Hacienda Crossings, two nearby retail centers with shops as Barnes & Noble, Whole Foods, the Habit, and Chipotle. 5160 Hacienda is also about a twenty-minute walk from the Dublin-Pleasanton BART station.
Amazon has been expanding its holdings across the East Bay. In November of last year, Amazon leased 600,000 square feet in Livermore at the Longfellow Logistics Center, which is owned by Orchard Partners. The lease is expected to begin during the second quarter of 2020 and is the second-largest lease ever signed in the East Bay/Pleasanton industrial market.
Amazon has also shown interest in Milpitas, and also in November solidified a lease for 343,000 square feet at McCarthy Creekside Industrial Center, following leases signed by both Apple and SF Motors at the same location. Amazon will occupy the three buildings part of the development’s second phase. City documents indicate that Amazon will use the site for the final delivery of goods and will position the property as a “delivery station,” with 360 vehicles departing and returning to the property on a daily basis.