Industrial Asset in Antioch up for Sale for $20MM

By Jon Peterson

The 235,456 square-foot Antioch Business Center is up for sale with an offering price of $20 million, as stated by sources familiar with the property. The asset is located at 1700 West 4th Street in Antioch, California, which is about 45 miles east of San Francisco.

The property is currently owned by an entity associated with Making Waves Foundation, a non-profit organization based in Richmond, Calif., which purchased the property in August 2016 for $17,750,000, according to public records. “The owner has controlled the asset for around 18 months. They had originally thought that this property might be a good location for a school, but then found another site that was a better fit for the organization,” says Jeffrey Ida, a senior associate at Marcus & Millichap. He works out of the firm’s San Francisco office, and his company is the listing agent on the sale. The other person involved is Brendan Gallagher, associate.

The property has strong income produced out of the property now, and the asset could be ripe for re-development or expansion of the building in the future. The industrial building is now 100 percent leased to Bond Manufacturing. This company uses the property to distribute products from companies like Black+Decker, Stanley, bloom, Island Lights and Miracle-Gro.

The lease with this tenant expires in August 2019. It also has two one-year extension options. The tenant at this time has not disclosed if they intend on exercising their option periods, and the current rent is a little bit below market.

The cap rate on a $20 million sale would be 5.17 percent. This return is based on the current rent coming out of the property. A pro forma future cap rate is projected to be 7.06 percent. The property covers a total of 17.35 acres.

“The property does have significant future development or re-development potential. The current zoning would allow the property to be kept as industrial space and be expanded up to 450,000 square feet. There also is the possibility that the property could be re-developed into another property type like retail, housing, office or mixed-use in the future,” said Ida.

West Coast Commercial Real Estate News