By Jon Peterson
The 237,312 square foot Northport Business Park in Fremont is on the market for sale. The projected price point on the sale is around $50 million, or around $210 per square foot, as stated by sources that track the sale of industrial assets in the East Bay.
The seller of the property is an entity associated with Encino, Calif.-based Crowsnest Properties, according to public records, and it is working with the CBRE National Partners Group in its efforts to find a buyer. Two people involved in the sale are Darla Longo, vice chairman, and Rebecca Perlmutter, senior vice president. CBRE declined to comment when contacted for this story.
The property entails two manufacturing buildings that are located at 45275 Northport Court and 45630 Northport Loop East. Both of the facilities are 100 percent leased to Quanta Computer Inc., a leading notebook computer manufacturer that operates on a global basis. The tenant has been in these buildings since 2000 and currently has a lease that runs through August of 2025.
The market fundamentals for the Fremont/Newark manufacturing area are very strong. The vacancy rate for this type of commercial use has dropped from 6 percent in 2014 to 2.4 percent through the third quarter of 2018. During this same time period, the average asking manufacturing lease rates have seen an 11.4 percent compounded annual growth rate.
The Fremont/Newark submarket is known as a major manufacturing region in Silicon Valley. It has a current total square footage of 19.2 million square feet. The lack of available land in infill markets like Fremont has created high barriers to entry.