By Meghan Hall
A massive former glass factory in Oakland is about to get a major facelift after one of the industry’s biggest industrial developers acquired the site at the end of last year. In a deal finalized on December 29th, Duke Realty purchased 3600 Alameda Ave. for $34.4 million. The seller, according to public records, was Owens-Brockway Glass Container Inc.
The deal for the property was all-cash, according to The Mercury News, who first reported the deal. Based on a market document obtained by The Registry, the factory totals 1.2 million square feet and sits on 28.8 acres. The buildings were first constructed in 1987.
The square footage is divided across six buildings, and the buildings range widely in size from 14,416 square feet to 574,343 square feet. The property is also divided into 22 separate parcels.
Duke’s new project would include 426,000 square feet of industrial space, as well as 30,000 square feet of office uses. About a half-acre of the site will be reserved for future retail development. Overall, public documents on file with the City of Oakland show that the building will be modern in its aesthetic while matching the surrounding architecture.
The industrial market in Oakland and the I-880 corridor remains hot, with vacancy below two percent, according to the property’s marketing flyer. A number of major projects in the submarket are currently under construction, and many are also pre-leased. Prologis is building 232,000 square feet in Oakland, of which 116,000 has been pre-leased. In Richmond, Shea’s 295,000 square foot project has also been pre-leased while 113,000 square feet of 177,000 square feet of NYL’s Richmond development has been spoken for.
According to the company’s website, Duke Realty is a pure-play, domestic-only REIT. The company’s portfolio includes 160 million square feet of space across 19 markets, such as Seattle, New Jersey, Washington D.C., Nashville and others. The company currently has $21 billion in enterprise value. As of the third quarter of 2021, 98.3 percent of Duke’s portfolio was lease stabilized, and the firm reported tenant retention of 86.2 percent.