Clarion Partners Planning 470,000 SQFT Industrial Development in Fremont

Fremont, Clarion Partners, East Bay, Baylands, Peery Arrillaga, 9th St. Partners, Seven Bridges Properties

By Vladimir Bosanac

A rare vacant parcel of land in Fremont may soon be getting a major development. Clarion Partners, which purchased 27.7 acres of land in the East Bay city in January of 2022 is planning to develop it into an innovative, 470,000 square foot property that may be suitable for a number of tenants already occupying properties in Fremont’s Baylands neighborhood.

The project application, announced by the San Francisco Business Times, was submitted to the city in June of this year.

The development is looking to bring to life six buildings totaling 470,354 square feet on the corner of Gateway Blvd. and Bayside Pkwy. just west of US Interstate 880 in the southern part of the city. A Courtyard Marriott hotel is located just across the street. There is a waterway that bisects the lot down the middle providing an interesting challenge for the development team to integrate it into the design of the space.

Clarion purchased the ten-parcel property in an all-cash deal from well-known Bay Area developers John Arrillaga and Richard Peery in January for $123.3 million, according to previous reporting by The Registry.

The site is slated for high-tech and industrial uses, although there may be a wide variety of tenants that may want to occupy this space. The company is partnering with 9th St. Partners and Seven Bridges Properties on this project. 9th St. Partners is a Los Angeles-based firm focused on opportunities and value-add real estate investments, entitlement, ground-up development and building repositioning in the industrial space. Seven Bridges is a Bay Area firm focused on the development and repositioning of industrial, office and mixed-use properties.

While the focus of the project may be industrial, the uses in this type of space can vary widely, which can be seen from the neighboring companies in the area. Some of the firms located in immediate proximity to the development include Siemens, Tesla, Enivix, SCION Instruments, ISE Labs and Stryker. Also, the property is next to some of the busiest Bay Area thoroughfares, which provide access across the East Bay, Silicon Valley and into the Peninsula submarkets.

Clarion Partners knows the Bay Area very well, and it has been a prolific investor across several sectors of the industry in the region. The company invested in an apartment community in Fremont in July of 2019 when it spent $110.25 million on the 185-Unit Class A Artist Walk apartment complex. In April of 2021, it paid $22 million for a 116,000 square foot industrial property in San Jose, and in April of 2019, the company paid $335 million in a partnership with LPC West to buy the 360,000 square foot 215 Fremont office asset in San Francisco. 

Over the past decade, the company made several investments in Sunnyvale, San Francisco and Santa Clara to name a few of the cities where it was active. In May of this year, the company in partnership with Trammell Crow began construction of a 205,223 square-foot Fairfield Industrial Center in the North Bay.

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