Deutsche Asset Management Buys Hayward Industrial Property for $93.6MM

FedEx, LEED, Bay Area, Hayward 92 Industrial Center, The McShane Companies, East Bay, Hayward, American Realty Advisors, Conor Commercial Real Estate, Deutsche Asset Management

(EDITOR’S NOTE: According to sources familiar with the details of the transaction, the property was purchased by New York-based Deutsche Asset Management, and the tenant in the building is FedEx. The address of the property is 3596 Baumberg Ave., and the project is located on 31.5 acres.

Kirk Helgeson, chief investment officer of American Realty Advisors added in an email to The Registry, “This investment was made through our value fund in partnership with Conor Commercial Real Estate, and McShane Construction was the design-build contractor. This is a higher yielding investment vehicle, which among other enhanced return strategies, pursues development in a build, stabilize and sell strategy. With the completion of the asset and the long-term lease in place, the partnership believed it could maximize the total return outcome by selling into a market where there is high buyer demand but a scarcity of high-quality industrial assets available to buy. This is a tremendous asset for a long-term oriented core buyer focused on durability of income in the best industrial submarket in the Bay Area, where there are significant barriers to entry and limited sites to create unique assets like this.)

Conor Commercial Real Estate and American Realty Advisors Break Record with Hayward 92 Sale; Fully-Leased Class A Industrial Facility Sold within Popular East Bay Submarket in Hayward, California

Irvine, California – Joint venture partners, Conor Commercial Real Estate, a member of The McShane Companies, and American Realty Advisors, a provider of commercial real estate investment management services for institutional investors, are pleased to announce the sale of Hayward 92 Industrial Center, a LEED Certified fully-automated industrial facility 100% leased to a Fortune 50 company in Hayward, California.

Hayward 92 Industrial Center was sold to an international institutional asset management company for an East Bay record-breaking $395 per square foot.

The infill industrial facility, located on 31.5 acres, was completed in late 2017 and boasts modern building features and fully improved land dedicated to truck, trailer and employee parking. The 236,976 square foot distribution center features 32′ clear height, 61 dock-high doors, 5,340 square feet of office and a 1,500 square foot security building to regulate site access. The building interior is fully-automated and features a sophisticated conveyor system to enhance productivity and facilitate efficient operations.

“This sale represents the culmination of the second in a series of strategic, market leading infill industrial developments in the Bay Area by the Conor/ARA partnership,” remarked John Dobrott, President – Industrial. “We were thrilled to work with American Realty Advisors on another project that has created jobs and improved the industrial – distribution landscape in the East Bay.”

”The success of this project, from entitlement through construction, lease-up and now disposition, is a testament to the partnership between Conor and American. Conor has been a tremendous partner for American and we look forward to future projects. This was a tremendous opportunity to create value for our clients while creating significant economic impact for the local economy – through the creation of hundreds of union construction jobs and long-term employment within this state-of-the-art distribution facility,” said Albert Pura, Senior Director within American’s Investment Group.

McShane Construction Company and Ware Malcomb Architects served as the design/build team for the construction of the build-to-suit project. Jeff Starkovich and Jay Hagglund of Cushman & Wakefield represented the Conor/ARA partnership in the project leasing, and Jeff Chiate and George Eckard, also of Cushman & Wakefield, led the marketing of the project sale.

About Conor Commercial Real Estate
Conor Commercial Real Estate is the integrated real estate development and investment arm of The McShane Companies headquartered in suburban Chicago, Illinois with regional offices located in Phoenix, Irvine, Dallas and Houston. The firm is active on a local, regional and national basis in the development of master-planned industrial and office parks, medical office developments, speculative industrial and office properties and build-to-suit projects for lease or purchase. For more information on Conor Commercial Real Estate, visit the firm’s website at www.conorcommercial.com.

About American Realty Advisors
With more than $8.2 billion in assets under management, American Realty Advisors is a leading provider of commercial real estate investment management services. For over 29 years, ARA has managed capital for institutional investors utilizing core and value-added commingled funds and separate accounts. ARA acquires assets directly or provides equity, preferred equity, mezzanine debt, debt, and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties. More information regarding ARA can be found at www.aracapital.com.

West Coast Commercial Real Estate News