By Jon Peterson
Oak Brook, Ill.-based CenterPoint Properties is in process expanding its Bay Are footprint. The company is currently engaged in buying the Bay Area Logistics Center industrial asset in Richmond. The property is under contract for $155 million, or roughly $218 per square foot, according to sources that track the sale of major industrial assets in Northern California. The deal has not closed at this time.
The current owner of the property is McClelland, Calif.-based LDK Ventures, and the owned is working with the Northern California office of Cushman & Wakefield as the listing agent on the sale. A company representative of Cushman & Wakefield stated in an email that it was declining to comment.
If the transaction on this property is finalized according to pricing stated above, it is projected to produce a 4.1 percent cap rate, as stated by sources aware of the potential sale of the property. This return would be based on the property’s current net operating income.
The Bay Area Logistics Center has been in the news recently, and The Registry reported in May of this year that Amazon had signed a 10-year lease for the entire 708,000 square feet of the property. Properties that are partially or fully leased to Amazon continue to attract a great deal of interest from investors, the pending sale on this asset is another example of institutional capital sources looking to capitalize on the growth of the technology and logistics behemoth.
The industrial warehouse is located at 2995 Atlas Road, and it is situated on a lot that totals 42 acres. LDK had developed the property last year in a location is approximately 18 miles from the Port of Oakland. This is one of the busiest ports in the country, and there is very limited land remaining for new development opportunities in the region.
Industrial assets are the one property type that has held up well since the outbreak of COVID-19, according to industry sources. It has the best performance of any of the major property types and is projected to continue this performance over the foreseeable future, as well.
At the same time, Amazon will continue its expansion in Northern California. It had stated earlier this month that it was seeking 15 last-mile space requirements in Northern California.
CenterPoint is known as a national player for industrial assets. It does operate a regional office in Northern California, which is located in Oakland at 301 Franklin Street, according to the company’s website.