By Jon Peterson
Denver-based Industrial Property Trust has paid approximately $97 per square foot or $25.9 million to acquire the 266,825 square foot industrial property located at 7501-7551 Las Positas Road in Livermore, according to sources familiar with the property.
Ryan Dunlap, who is a vice president of acquisitions in the western region for the buyer and works out of the company’s regional office in Newport Beach, did not respond to phone calls seeking comment for this story.[contextly_sidebar id=”PySFaiQodm0thlIJ83n7oOAtuEs3YWpu”]The seller of the property was San Diego-based Alere Property Group who owned the property for the last eight years. Alan Carmichael is a vice president with the company. He didn’t return calls to discuss the sale of the property.
The buyers and sellers in the deal were both represented by Colliers International in the East Bay. The listing agents were Greig Lagomarsino of the Oakland office and Michael Lloyd in the Pleasanton office of Colliers.
The cap rate on this deal was approximately 5 percent, according to sources with direct knowledge of this deal. This return is based on the current rent being produced by the property.
The property in Livermore is considered to be a warehouse/distribution type of asset. It was built in 2000 and it covers 14 acres of land. The building is now 100 percent occupied by three tenants. These are Performance Food Groups, Transwestern Polymers and Topp Shelf. The space occupied by Performance Food Groups is a specialty cooler/freezer industrial space. The leases will be in place through 2023.
Industrial Property Trust is a real estate investment trust that buys industrial properties around the country. According to its Web site, as of the end of 2014 it owned eight properties in the San Francisco Bay Area. It targets properties that are located in high barrier to entry markets and as well as GDP growth markets.
Alere is a privately held real estate operating company, and it only invests in industrial properties across the western United States. According to its Web site, its targeted markets are Northern California, Utah, Los Angeles, San Diego, Orange County and the Inland Empire. The company was formed in 2003 and since then has acquired or developed $1.4 billion worth of industrial assets.
Alere has the Washington State Investment Board as a major financial partner of the firm. In 2011, the pension fund made a direct $200 million investment into the company. The capital, which is drawn down by Alere as it is needed, is being used by the investment firm for growth capital. Alere has not exhausted the entire capital yet at this point.