Gateway 80 Business Park in Fairfield Sells for $100MM

Invesco industrial California Burbank Fremont Los Angeles Stockton

(EDITOR’S NOTE: According to sources with knowledge of the sale details, the building at 2920 Cordelia Road was sold for $47.355 million, or $110 per square foot, with a 5 percent cap rate. The building is 100 percent leased to Berlin Packaging for seven years. The lease rate is $0.47 per month per square foot. The building at 2950 Cordelia Road was sold for $52.645 million, also at $110 per square foot and a 6.5 percent cap rate. The site includes 9 acres of land for the future development of an additional 150,000 square space. This space is currently used for parking. The price includes an allocation for the excess yard. The building is leased to Blue Apron for 10 years with a lease rate of $0.54.

“MetLife Investment Management has a number of different real estate strategies. While most people think of us as a traditional build-to-core investor, we do also look to reshape our investment portfolios as and when the market presents an opportunity to do so. Over the last couple of years, we’ve seen growing demand for industrial real estate properties in the Fairfield, California area, and increasingly, a limited supply of those properties,” said Kaya Murray director of real estate, MetLife Investment Management. “After developing and stabilizing the Gateway 80 Business Park, a Class A asset, we took an entrepreneurial approach and offered it back into the market, marking the end of our investment strategy for that particular property.”)

MetLife, Gateway 80 Industrial purchase Bay Area industrial park

SAN FRANCISCO, Feb. 6, 2018 – JLL’s Capital Markets experts today announced the company completed the sale of the Gateway 80 Business Park in Fairfield, California. JLL represented the seller, a partnership between MetLife Real Estate Investors and Gateway 80 Industrial, LLC in the transaction. A client of Invesco Real Estate, a global real estate investment manager, purchased the two-building, 860,651-square-foot business park.

Managing Directors Mark Detmer, Bo Mills, Glen Dowling and Matt Bracco, along with Senior Vice President Chris Neeb and Vice President Ryan Sitov led JLL on the sale.

“New construction logistics buildings are difficult to find in the Bay Area where vacancy is in the low single digits,” said Detmer. “With state-of-the-art industrial product and limited opportunities of scale in the Bay Area, this was a highly sought after deal.”

Added Tim Schaedler, Partner at Panattoni Development Company, “Industrial product continues to be a top priority for investors, and our robust development pipeline reflects that. We were pleased with the amount of interest this asset garnered, and how well JLL was able to handle entire disposition process, from marketing to due diligence and closing.”

The fully leased business park consists of 2920 Cordelia Road (430,151 square feet) and 2950 Cordelia Road (430,500 square feet) as well as a 9.52-acre excess parcel and a parking lot at 2980 Cordelia Road. Both buildings were built in 2017. Gateway 80 Business Park provides access to Interstate 80, a main thoroughfare to the San Francisco Bay Area’s ports and international airports.

Panattoni Development Company, developer of Gateway 80 Business Park, is a global firm with proven performance for clients throughout the United States, Canada and Europe. The company has successfully developed more than 302 million square feet of industrial office and retail space in more than 278 cities. The firm is renowned for its state-of-the-art, build-to-suit warehouse assignments, of which it has completed more than 106 million square feet.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2016 alone, JLL Capital Markets completed $145 billion in investment sale and debt and equity transactions globally. The firm’s Capital Markets team comprises more than 2,000 specialists, operating all over the globe.

Invesco Real Estate is a global leader in the real estate investment management business with $65.1 billion in real estate assets under management, 462 employees and 21 regional offices across the U.S., Europe and Asia (as of 12/31/17). Invesco Real Estate has been actively investing in core, value-add and opportunistic real estate strategies since 1992. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd. Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; www.invesco.com.

About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the third quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of over 80,000. As of September 30, 2017, LaSalle Investment Management had $59.0 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

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