Black Creek Pays $48MM to Buy Livermore Industrial Asset

Black Creek Group Livermore industrial 880 Corridor Bay Area Commerce Center CBRE Crow Holdings East Bay Mattress Firm

By Jon Peterson

Investors continue to flock after existing East Bay industrial assets. The most recent example of this was the deal closed by Denver-based Black Creek Group to acquire 7600 Hawthorne Avenue in Livermore. This investment firm paid $48.5 million, or $220.75 per square foot, to acquire the property, according to sources that track the sale of industrial properties in the greater San Francisco Bay Area.

The seller of the property was Dallas-based Crow Holdings. It was represented in the transaction by CBRE. The lead on the sale was run by Darla Longo, vice chairman, and Rebecca Perlmutter, senior vice president. CBRE declined to comment on the transaction.

The East Bay industrial market that includes both the 880 Corridor and Tri-Valley region is one that is known as a hot spot for both investors and tenants, according to industry sources. It is also a region in which it is very difficult to add new space to the areas, and industrial tenants like the areas because of the established infrastructure in place to move their products around.

“The property at 7600 Hawthorne Ave. is a well-located, Class A, multi-tenant industrial building in a thriving market that offers close proximity to major transportation across the Greater Bay Area with direct access to nearly 10 million people. This property is an attractive acquisition for Black Creek with a value-add component, [since] a portion of the property is currently vacant providing future upside. Black Creek plans to continue to seek similar opportunities throughout California. We are grateful for all the hard work of the brokers on the transaction including CBRE’s Rebecca Perlmutter, Darla Longo and the National Partners team, as well Mike Lloyd with Colliers,” said Gregg Boehm, Black Creek’s senior vice president of acquisitions and development for the western region.

7600 Hawthorne is located within the Bay Area Commerce Center industrial property. It totals 241,591 square feet, and the asset now is 69 percent leased to Mattress Firm Inc. This tenant has a lease that totals 166,140 square feet, which runs through October 2029. This property was first developed in 2018, and it has a one-year net operating income of $2.5 million.

Crow Holdings had first put the property up for sale in January of this year. The asset is located within the Tri-Valley sub-market and has direct access to I-580. The industrial market in the region had a 2.4 percent vacancy for industrial product in the range of 40,000 to 100,000 square feet when the property was put up for sale. The Livermore industrial market had a vacancy of 3.7 percent.

Black Creek is known as a national investor of industrial properties, according to its website. It does have a regional office located in California in Newport Beach. Its other regional offices are in Atlanta, Chicago, Dallas and New Jersey.

West Coast Commercial Real Estate News