By Jon Peterson
Oakland-based Madison Park Financial Corporation has placed a $13.5 million asking price on the sale of the 277,080 square foot Giant Trade Center industrial building in San Pablo located at 1021 Broadway Avenue.
The listing agent on the sale is the San Francisco office of Marcus & Millichap. “The new owner of this property could take this asset in a variety of directions. It has very strong cash flow, which right now is producing a 6.9 percent cap rate. Rents in the property are below market, so additional income could be created in the future once the leases come up for renewal,” says Jeffrey Ida, senior associate at Marcus & Millichap. He and Brendan Gallagher, associate at Marcus & Millichap, are overseeing the sale of the property.
The industrial property could be re-developed into anther property type, as well. “One potential future use would be self-storage. The market for self-storage in the San Pablo/Richmond market remains very strong with a current market occupancy of 95 percent,” said Ida.
The current occupancy of Giant Trade Center is 91.7 percent. The most prominent tenants are Be-Home, Pottery Merchant, Abba Stone & Tile and Generate G/I Warehouse. These four companies occupy a total of 89,807 square feet or 32.41 percent of the property. The asset is positioned on a 14.28-acre parcel.
Madison Park is selling the asset since it has shifted its long-term strategy to be only an owner/investor of apartment assets. “The property in San Pablo is one of two properties that the company owns that is not an apartment. Once they are sold, the company will only be an apartment owner and manager,” said Ida.
The other property that Madison Park has up for sale is the 59,338 square foot Courtyard Center in San Ramon. This is a mixed-use commercial property that is located at 2410 San Ramon Valley Boulevard.
Madison Park looks to find additional investment opportunities in the East Bay region of the San Francisco Bay Area, as stated on its web site. The company’s investment focus is on purchasing existing value-add assets or buying development sites that it can take through the entitlement process.