A 15.1-acre site in East Oakland will be subject to major changes, after it was recently acquired by Duke Realty. In a deal that closed at the end of April, the industrial investment and development firm purchased the site from McWane Inc. and Bosley Investments for $62.8 million, The Mercury News reported.
The redevelopment site is located at 7825 San Leandro Street and is currently home to AB&I Foundry, a scrap metal company. The company, which has been at the property since 1906, is closing doors and relocating to Tyler, Texas, following a lawsuit from Attorney General Rob Bonta stating the company’s operations are creating cancer-causing chemicals.
A project proposal from Duke Realty suggests that the site would be redeveloped with a 325,000 square-food industrial building. Plans show that the project would account for multiple uses, including warehouse and distribution space and would also offer 25,000 square feet of office space.
“The proposed project represents an opportunity to develop a best-in-class modern industrial building representing a significant investment in East Oakland. The project generates benefits for the local community and is a proactive response to the current economic and market demands. The proposal creates a thriving employment center and is designed to conform to the industrial nature of the area,” the project proposal states.
Duke Realty has recently made several expansions in Northern California. Most recently in Oakland, the Indianapolis-based developer purchased a 28.8-acre redevelopment site at 3600 Alameda Avenue with plans to construct a building with 426,000 square feet of industrial space and 30,000 square feet of office uses. The property was acquired by Duke Realty at the end of December for $34 million.
Overall, Duke Realty owns and operates approximately 160 million rentable square feet of industrial properties throughout the United States. In the first quarter of 2022, the company added eight new speculative development projects worth $339 million. Building acquisitions in the first quarter of the year also totaled $34 million.