By Jon Peterson
New York City-based DRA Advisors has closed on the acquisition of the 843,000 square foot North Bay Logistics Center industrial asset in Vacaville located at 700 Crocker Drive. The purchase price was $88.5 million, or around $105 per square foot, as stated by sources with direct knowledge of the transaction.
The seller of the property was a joint venture between Los Angeles-based PCCP and McClellan, Calif.-based LDK Ventures. The listing agent on the sale was Newmark. One of the main persons involved in the sale was Andrew Briner, an executive managing director who works out of the firm’s office in downtown Los Angeles. PCCP declined to comment when contacted for this story.
“The North Bay and greater Bay Area has significant barriers to acquire and/or build new industrial product, based primarily on its limited and diminishing land base and difficulty in obtaining entitlements for new product,” said Newmark’s Executive Managing Directors Andrew Briner. “Given the proximity to such a large pool of residents, Solano County has quickly emerged as one of the most desired big-box industrial markets in Northern California.”
Denton Kelley, managing principal of LDK Ventures added, “We are very pleased with the outcome on this sale transaction and it just further demonstrates the long-term strength in the fundamentals of the Northern California industrial market.”
The sellers of the property had acquired the asset for $35 million in October 2017, according to information provided by the companies when they acquired the property. It was purchased as a vacant asset then and included a total of around 75 acres of land.
After purchasing the property, the two firms started a comprehensive capital improvement plan. The actual amount invested for the upgrades was not disclosed, however, the recent additions to the property include a new roof and a lighting system.
The property is now fully leased to two tenants. One of the occupants is Serena & Lily, a home furnishings company that occupies 434,000 square feet. The other is a 405,000 square feet lease with Wineshipping.com. Its space is temperature-controlled. A large e-commerce tenant uses the excess land at the site for trailer storage.
DRA is mostly known as a value-add real estate investment firm. The company will be able to add some value to the North Bay Logistics Center as the current rents in the property are ten to fifteen percent below market rates.
DRA has an active portfolio in Northern California, as stated on the company’s website. Its other industrial assets in the region are located in Petaluma and San Jose. The real estate investment firm also owns office properties in Alameda. The company does have a regional office in San Francisco located at 505 Sansome Street.