By Jon Peterson
Ridgeland, Miss.-based EastGroup Properties has acquired the 82,080 square foot industrial property located at 1586 Zephyr Avenue in Hayward. The purchase price was $28.5 million, or around $347 per square foot, according to sources that were aware the property was up for sale.
The seller of the property was San Francisco Bay Area-based Mason Properties. Both the buyer and seller worked on the transaction with the Oakland office of Colliers International. The team representing the buyer included Nick Ousman, Greig Lagomarsino and Casey Ricksen, while the seller worked with Nick Mascheroni, Mark Maguire, Justin Smutko and Paul Boskovich.
This transaction is indicative of the positive trends across the San Francisco Bay Area industrial market, which continues to be very strong. “The San Francisco Bay Area industrial market is as hot as it’s ever been. Sub three percent vacancy, record-high lease rates, astronomical replacement costs, and aggressive institutional capital have all contributed to the perfect storm for record pricing,” says Nick Mascheroni, a vice president for the industrial team with Colliers.
Mason Properties had been the owner of the property as an owner/user. It had owned the property and occupied it for several years. Recently, the firm made the decision to occupy less space in the property, which is the main reason why at the time of the sale the property was 57 percent vacant. There is now 47,000 square feet of immediate availability in the property for lease.
The industrial market in Hayward remains very tight. According to data compiled by Colliers for the first quarter of 2022, the vacancy for industrial space in Hayward is 1.2 percent, up from 1 percent from the previous quarter. There is a total of 16.9 million square feet in the market spread across 794 buildings. Average asking triple-net rental rates have moved up from $1.23 per square foot to $1.25 per square foot over the past quarter.