By Jon Peterson
San Leandro-based ASA Trading Company has placed on the market for sale the 75,000 square foot industrial property located at 2300 Polvorosa Drive in San Leandro. The property has an asking price of $15.7 million, according to sources aware that the property is up for sale.
This will be the second time that the asset has been placed on the market for sale. It was under contract to an owner/user earlier this year with an asking price of $16 million. A closing didn’t happen because the transaction was contingent on the disposition of some office assets in San Francisco, as stated by sources familiar with the situation.
ASA is represented in the sale of the property by the Ida Group at Marcus & Millichap. One person working on the sale is Jeff Ida, a first vice president, who works out of the firm’s San Francisco office. He declined to comment when contact for this story. The expectation is that an owner/user or real estate investment firm may be interested in the property.
The seller is known as a global supplier of food products for the food service industry. It has owned and operated out of San Leandro for the past 30 years. It has worked with major food distributors like Sysco, Safeway, Tyson, Kraft Heinz and US Foods.
ASA will be giving the new owner options on how the sale is structured. The property could be sold as a vacant property, and it also can be sold with ASA remaining in the building on a short-term leaseback to allow new ownership time to determine the appropriate strategy going forward. The time of the leaseback could be three to six months or up to a year.
2300 Polvorosa is comprised of two types of spaces within the asset. There is 61,400 square feet of warehouse space and another 14,000 square feet of office space. The asset covers a total of 3.45 acres. It was first developed in 1973.
The property has a very favorable location, because it is situated approximately two miles off of Highway I-880. This puts in in one of the strongest industrial markets in the region with easy access to the broader Bay Area geography. The total market vacancy for industrial properties in San Leandro is around one percent, according to the third quarter 2020 report by CBRE. The total square footage in the market is 23.2 million square feet with very little if any new construction happening.