By Jon Peterson
Leasing of existing industrial properties in the East Bay increased recently with the closing of new transactions totaling more than 251,000 square feet in Union City and Oakland.[contextly_sidebar id=”jlcfpJeNZTVDuxDFapvGonRiNSlGpK4G”]Chef’s Warehouse has signed a lease for 117,420 square feet for an industrial property located at 1250 Whipple Road in Union City. At the same time, Dealer Tire has closed on a deal for 134,300 square foot for an industrial property situated at 7210 Edgewater Drive in Oakland.
Chef’s Warehouse is planning a significant expansion for its new lease. “This company is going from 40,000 square feet about three blocks away in Hayward to its new location. This translates into a big growth push for the tenant,” said Greig Lagomarsino, executive vice president with Colliers International in its Oakland office. He and Nick Ousman of Colliers worked on this deal on behalf of the tenant.
This transaction was completed in late September. The new lease for the tenant will start on March 1st of next year, and the expiration date is the end of June 2027. The lease includes four months of free rent for the tenant.
The property is owned by San Diego-based Westcore Properties. It had acquired the property in April of this year for $8 million. This real estate investment firm was represented in the new lease by Kevin Ahaesy, a principal with Avison Young in its San Francisco office.
Westcore is providing all improvements at turn-key at occupancy. The improvements are estimated to cost $3.2 million. The asset is considered to be a manufacturing property. It has around 8,000 square feet of office space. The property has 40,000 square feet of freezer/cooler space that the new tenant is planning on using.
The property in the past had been leased by Dryer’s Ice Cream, and it was first constructed in 1987.
Dealer Tire has a planned expansion in mind for its new lease. “They are moving from 80,000 square feet in Oakland to 134,000 near the Oakland International Airport,” said Largomarsino. Todd Severson and Mark Maguire of Colliers International joined Lagomarsino in working on this deal for the owner, San Francisco-based Prologis. The tenant in this deal was represented by Craig Hagglund, a managing partner at Oakland-based Lee & Associates.
The lease last for over five years. Included in the lease is three months of free rent. The starting rent for the tenant is $.49 triple-net, with one option to renew for three years at fair market value.
This lease is located within the Edgewater Industrial Center complex. It totals 396,500 square feet and covers 18.9 acres of land. The property was built in 1967 and is considered to be B-quality space. Prologis is planning to perform ESFR sprinkler upgrade and contribute around $330,000 for dock equipment and office area modifications. The office build out now is 5,106 square feet, which will be reduced by 2,000 square feet.