Successfully Structuring $19.25 Million Sale-Leaseback Benefitting Both 46723 Lakeview Partners, LLC and Genmark Automation
SAN FRANCISCO – APRIL 3, 2017 – CBRE Capital Markets has arranged the $19.25 million sale of 46723 Lakeview Boulevard, an 86,118 square foot, partial two-story Research and Development building located in Fremont, California.
46723 Lakeview Boulevard is situated at the entrance of the highly sought-after Fremont Bayside submarket, which has consistently outperformed the greater Fremont market in terms of both occupancy and lease rates. Upon the close of escrow, the Property purchased by 46723 Lakeview Partner, LLC will be leased back by the current owner and occupant of the building, Genmark Automation, on a NNN basis for a lease term of 10 years.
CBRE brokers Scott Prosser, SIOR, Executive Vice President, CBRE Capital Markets served as the sales advisory team leader supported by Joe Moriarty, Executive Vice President, Jack DePuy, Senior Associate, all partners with CBRE’s Northern California Capita Markets team, and local market expert Mike Filice, Senior Vice President.
The Property is located at the main entrance to Bayside business park submarket of Fremont, at the corner of Lakeview Boulevard and Warren Avenue, which is defined as the area west of Interstate 880, bordered by Cushing Parkway to the north and Dixon Landing Road to the south. Scott Prosser added, “the buyer was excited with the opportunity to own a high-quality building in this desirable submarket with a long-term lease.”
The overall Fremont submarket has experienced strong market fundamentals over the past four years, with the Bayside business park submarket consistently outperforming the overall Fremont submarket. Fremont has witnessed a fundamental shift over the past five years, as some of the most promising industry sectors in the economy are moving to, or expanding in, Fremont. The demand drivers in Fremont are unique to the greater Bay Area due to the mix of industries clustered in the market, including next generation automotive, clean technology, advanced manufacturing and life science. Since 2013, occupancy gains have totaled nearly 2.5 million square feet, decreasing the vacancy rate to 8.4% as of the second quarter of 2016, a decline of 1,310 basis points over this time period.
Positioned in the center of the Bayside business park submarket, 46723 Lakeview Boulevard offers ease of access throughout the Bayside market via Fremont Boulevard, which now connects to Dixon Landing Road and to Milpitas’ McCarthy Ranch Business Park. Interstate 880 via Warren Avenue provides direct access to the Property for employees who reside in the East Bay and Silicon Valley. Highway 237 is five miles south of the Property, offering direct access to North San Jose and the Highway 101 Corridor submarkets of Santa Clara, Sunnyvale and Mountain View. Additionally, the Fremont Warm Springs BART Station, which opened this week, providing the Fremont and the Bayside submarket with public transportation to the entire Bay Area.
About Genmark Automation
Genmark Automation, headquartered at the Property, designs, develops and manufactures high precision robotics, and motion control and integrated tool automation solutions for the global semiconductor, data storage and flat panel display industries. In addition to their Fremont location, Genmark has facilities located in Europe, Asia and the Middle East. For more information, http://www.genmarkautomation.info/
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.