By Jon Peterson
Oakland-based Bay Area Rapid Transit is planning a major redevelopment project in Hayward that will have a total development budget of $408.6 million covering a number of properties that sit on a site of 28 acres. The news site will be used as an expansion of the transit operator’s existing 88-acre fleet operations facility, which is located at the Hayward Yard site, at 150 Sandoval Way.
“This a major redevelopment project for our company. It will allow us to expand our fleet operation in the Bay Area and to better serve our customers to areas including Oakland, Hayward and Silicon Valley,” says James Allison, media relations manager.[contextly_sidebar id=”SqDRQSnkZcEWbfUJKLoJRuVlkYFGVJ0s”]The new expansion of the BART operation in Hayward was accomplished through the acquisition of the Whipple Road Business Park in Hayward. “We acquired this property for $46.3 million,” said Allison.
This is a property located at 1001 to 1099 Whipple Road in Hayward. It involves three properties totaling four warehouse over 28 acres, and there is a total of 440,000 square feet of existing space. The transaction also includes six acres of adjacent land where another 130,000 to 140,000 square feet of space could be developed in the future.
This property had been owned by New York-based Morgan Stanley Real Estate. A representative of the company declined to comment when contacted for this story. The existing space in the business park was 50 percent leased at the time of the sale. The cap rate on this transaction had no meaning as BART will be using the property for its own purposes.
Morgan Stanley sold the property though it’s listing agent on the sale, the Oakland office of Colliers International. The two brokers involved in the transaction were Greig Largomarsino, executive vice president, and Casey Ricksen, senior vice president. They also declined to comment when reached for this story.
There has been some significant improvement with vacancy rates for warehouse space in Hayward over the past 12 months. Data from Colliers International states that current vacancy was 3.2 percent at the end of 2014. It was 6.8 percent at the end of the previous year. Average asking rents have moved from $0.53 NNN per square foot per month at the end of 2014 compare to $0.39 NNN per square foot per month 12 months before that. There are 214 warehouse properties in the Hayward market totaling a little over 21 million square feet.