By Jon Peterson
Chicago-based First Industrial Realty Trust has acquired an industrial development site of 3.14 acres in Hayward located at 3764 Depot Road. The purchase price on the transaction was $7.1 million, according to sources track the sale of industrial assets in the East Bay.
“We are pleased to acquire and develop this rare infill site as we expand our presence in the I-880 Corridor. We plan to develop a high image, modern logistics facility with low coverage that will be perfectly suited for customers requiring significant trailer parking and storage,” says John Quinn, regional director and market leader for First Industrial in Northern California and Seattle. The company has a regional office in Oakland at 1111 Broadway.
The seller of the property was a private owner. Both the buyer and the seller were represented in the transaction by Colliers International. Those involved were Mark Maguire executive vice president, Justin Smutko, senior vice president, Nick Mascheroni, vice president, and Paul Boskovich, associate.
“Every developer wants a perfect 10- to 15-acre rectangle on I-880. Unfortunately, our market has very few of those. We’re in a good position with this site to attract users from both the San Francisco Peninsula and East Bay,” said Mascheroni.
The new development will be a spec building that will total roughly 37,000 square feet in warehouse/distribution type of space, and the developer is targeting a single tenant to occupy the asset. Colliers will handle the leasing on the property. Construction is projected to kick off in the third quarter of this year with a projected delivery some time in the latter part of 2022.
The site had been used as a pallet yard, so there is no existing structure that needs to be demolished. The asset will be concrete tilt construction, 32’ clear height, ESFR sprinklers, LED motion senior lighting on a fully secured site. The excess yard will be paved and lit for storage or fleet parking.
The Hayward industrial market remains very tight. According to data supplied by Colliers, vacancy for industrial assets was 2.2 percent, and 3.4 percent for warehouse properties through the end of last year.
First Industrial has been growing its presence in Northern California over the past 12 months. The public REIT has closed on four transactions during 2020, according to the company’s fourth quarter earning report. One of these deals closed in the third quarter. This was the $5 million purchase of the 18,250 square feet in Hayward at 22950 Clawiter Road. There were two assets purchased in Fremont. One was a $9.2 million deal for the 38,692 square foot property at 4160-4170 Business Center Drive. The company also spent $8.7 million for a 46,000 square feet property at 4200 Business Center Drive. The other deal in 2020 was a $4.9 million purchase of the 22,500 square foot property located at 27403 Industrial Boulevard in Hayward.