By Jon Peterson
Ark Row Industrial Partners has closed on two industrial acquisitions this summer for nearly $70 million. The latest of the two is the acquisition of 2701-2831 Merced Street in San Leandro, for which the company $42.9 million, or roughly $317 per square foot, according to sources aware of the property trade.
Ark Row declined to comment when contacted for this story.
The seller of the 135,143 square foot property was the Lowenberg Corporation. The firm did not respond to a phone call seeking comment on the sale. Lowenberg had owned the property since 1993 when it paid $3 million for the asset, according to public records data. The seller completed the transaction with the assistance of Colliers through its Logistics and Transportation Group in the San Francisco Bay Area. Those working on the transaction included Greig Lagomarsino, executive vice president, and Nick Ousman, senior vice president.
The property in San Leandro is fully leased at this time. The new owner will have a mark-to-market opportunity in the future, since the rents in the property now are under market rates, according to sources that are familiar with the current condition of the property.
The asset represents Ark Row’s second industrial purchase in San Leandro this summer. The investment firm also acquired 2450 Alvarado Street near the end of June. The purchase price for this property was $26.4 million, or roughly $208 per square foot, according to public records. The property totals 126,624 square feet, and it was originally constructed in 1969.
The San Leandro industrial market remains quite tight. According to research compiled by Colliers, the vacancy rate for industrial space in the area is 2.9 percent through the end of the second quarter of 2022. The market will see little if any new development, continuing to make its supply constrained for the foreseeable future. The total square footage in the market is 11.4 million square feet.