By Meghan Hall
A vacant piece of land in Dublin has popped up for sale as the Bay Area suburb continues its rapid expansion. Placed on the market just a few days ago, a 5.75-acre property located just off of Interstate 580 is up for grabs. According to documentation obtained by The Registry, the asking price for the property is about $10.9 million.
The property’s address is simply listed as “Lockhart Street” in Alameda County public records. The property’s mailing address–3657 Old Santa Rita Rd.–is associated with Kartunz and Avant Garde Wheels, which specialize in the custom modification of boats, cars, trucks and other vehicles.
Currently, the site’s zoning alots for a 260-key hotel with conference center, banquet hall, restaurant and other “full-service” amenities. According to an offering memorandum released by Intero Commercial and obtained by The Registry, recommended hotel brands for the site include Embassy Suites by Hilton, Hyatt, Tru by Hilton, Crown Plaza by I.H.G., or others.
Upon the sale of the property, the hotel site will be subdivided out and consist of 4.75 acres per ownership, with a remaining one-acre left over for future uses. The memorandum notes that the site is level and all municipal utilities are available. The buyer must work with the City of Dublin for entitlements.
The property is in a rapidly developing neighborhood which over the past number of years has seen major projects like Kaiser Permanente’s Medical Offices and Cancer Center, as well as Fallon Gateway and the San Francisco Premium Shopping Outlets, come to fruition.
“The site offers great exposure to the growing 580 Highway Corridor,” states the memorandum. “The area demographics anticipates an attraction for new hotel development.”
The OM continues, adding, that the “Tri-Valley is an integral component of the Bay Area economy,” due to its location at the intersection of both Silicon Valley and San Francisco. Because of its location and because of its availability of land, the offering memorandum maintains that the market is primed for new development.
Over the past decade, the Tri -Valley has added 40,000 jobs, with employment increasing by 21 percent. Growth in the rest of the Bay Area, by comparison, has sat around three percent. Innovation assets, along with the area’s highly skilled and educated population, has cultivated start-ups locally while attracting companies from other regions.
“A large piece of the Tri-Valley’s economic success stems from its strength in innovation and entrepreneurship,” explains Intero Commercial. “A large piece of this is due to the region’s two national laboratories which contribute to start-ups based on lab research, and attract other companies to the area as research partners.”
Intero Commercial notes that the Tri-Valley had a regional GDP of $42 billion in 2016, with GDP per worker coming to $225,000. The state’s average of GDP per worker, by comparison, was about $160,000 per year.
Intero Commercial notes that if hotel development is pursued, the project would likely fare well. The company notes that hotels in the market are currently achieving occupancy levels from the mid-70 percent range and average daily rates range (ADR) between $180 to $220 per night. The brokerage firm anticipates that the hotel, due to its location and amenities, would achieve an occupancy rate of 75 percent and an ADR of $190 per night. Revenues could reach $12,941,500 annually, states the memorandum.