(EDITOR’S NOTE: According to public documents, the sale price on the asset was $36.4 million, according to public documents. The sale on the properties closed on August 10, 2018.)
RENO, Nev. (September 13, 2018) – Dermody Properties, a national private equity real estate investment, development and management company focused exclusively on the logistics real estate sector, announced its purchase of four buildings at Fremont Research Center located in Fremont, Calif., a submarket within the Silicon Valley. The buildings, totaling 191,703 square feet, are 87 percent occupied and are home to tenants in clean technology, R&D and advanced manufacturing. It will be managed by the company’s West Region office, led by George Condon, West Region Partner.
The acquisition is part of Dermody Properties’ strategy of acquiring or developing properties in logistics-focused locations around the nation. The property is located along Silicon Valley’s I-880 Corridor just south of the Fremont Innovation District. The newly opened Warm Springs BART station is located 1.5 miles from the property.
Condon said, “We appreciate the efforts of our brokers at Newmark, Cornish and Carey and Cushman & Wakefield who brought us this opportunity. The tenants are outstanding companies that are part of the hub of technology and light manufacturing in the San Francisco Bay Area.”
Steve Kapp and Chris Shaffer of Newmark, Cornish and Carey along with Adam Lasoff, Eric Fox and Steve Hermann of Cushman & Wakefield of San Francisco brought the opportunity to Dermody Properties.
“The acquisition of Fremont Research Center is consistent with our strategy of acquiring value-add, functional, infill logistics and light manufacturing assets in Tier 1 markets. The barriers to entry in the Silicon Valley submarket are very high and submarket occupancies are at or near record levels. We believe these market fundamentals will drive growth in asset value,” said Douglas A. Kiersey, Jr., President of Dermody Properties.
The buildings sold were 47513, 47600, and 47621/47633 Westinghouse Drive, and 255 Fourier Avenue. There is a vacancy in 47633 Westinghouse Drive of 25,088 square feet. This suite contains office, light manufacturing and warehouse space. There is ample parking and an outside storage area.
Fremont Research Center is situated on 12.8 acres within Silicon Valley’s manufacturing hub of Fremont. The property is strategically located between Interstates 680 and 880, providing direct access for employees living in the East Bay and South Bay. The new Warm Springs BART station has significantly reduced commute times for employees coming from San Francisco and Oakland and will continue to add value to the immediate area as the rail line extends south. Adding to the desirability of this location, the property is situated adjacent to one of the city’s premier residential areas with high-performing public schools, making it especially attractive for local entrepreneurs who live nearby.
Vacancies in the region are rare, and Fremont’s direct average rent is a 75 percent discount to Palo Alto’s direct average rate of $5.43 per square foot and a 41 percent discount to North San Jose’s direct average rate of $2.30 per square foot.
Recent expansions into the city include such notable names as Facebook, Apple, TE Connectivity and Seagate, along with organic growth from companies already based in Fremont, including Tesla, Boehringer Ingelheim, Lam Research, Quanta Computer and ThermoFisher Scientific.
About Dermody Properties
Dermody Properties is a privately-owned real estate investment, development and management firm that specializes in the acquisition and development of logistics real estate in strategic locations for e-commerce fulfillment centers, third party logistics and distribution customers. Founded in 1960, Dermody Properties has invested in more than 70 million square feet of industrial space. In addition to its corporate office in Reno, Nev., it has regional offices in northern and southern California, Phoenix, Seattle, Chicago, Pennsylvania/New Jersey and Nevada. For more information visit www.Dermody.com.