Hall Equities Buys Industrial Asset in Walnut Creek for $12MM

Fairway San Leandro, San Leandro, Colliers International, East Bay, San Francisco, Bay Area

By Jon Peterson

A hometown investor has acquired an industrial property in Walnut Creek. Hall Equities Group has paid a little more than $12 million to acquire the 90,000 square foot 205 Wiget Lane industrial building in Walnut Creek, according to sources familiar with the property.

[contextly_sidebar id=”Q7sTVhLb3yQnaQpEzQbZT2BAuENsju49″]Mark Scheberies, senior vice president of capital markets for Hall Equities, declined to comment when contacted for this story.

The cap rate on this transaction was around seven percent, according to sources with knowledge of the deal. This return is based on the property’s current net operating income.

The seller on the property was San Francisco-based Big Heart Pet Brands. Both the buyer and seller in the transaction were represented by DTZ. The listing agents on the deal were Brooks Pedder and Whiff Collins; both are senior managing directors for DTZ, and they work out of the company’s office in Walnut Creek. Pedder declined to comment when reached for this story.

The property was developed in 1968, and it is currently 100 percent leased. The asset is known as a R&D/manufacturing headquarters facility for the seller.

The seller of this property was now-defunct Del Monte Foods. This company was sold about a year ago to an Asian entity called Del Monte Pacific Limited. This was done so Del Monte Foods could focus its resources and efforts on its pet products business. Del Monte would change the name of its stand-alone pets brand company to Big Heart Pet Brands.

The industrial market in Walnut Creek did see a slight increase its vacancy level during the last quarter of 2014. According to data from DTZ, vacancy in the fourth quarter went from 9.9 percent to 10.6 percent in the fourth quarter.

Rents for industrial space in Walnut Creek moved up a little in 2014. DTZ stated in a market report that rents in the fourth quarter for 2014 were at $0.49 per square foot on a monthly triple-net basis versus being at $0.46 one year ago.

Hall Equities buys properties in many markets. According to its Web site, most of its deals are on the West Coast and the middle of the country. The vast majority of its portfolio is made up of retail, industrial, apartments and office/laboratory properties.

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