By Meghan Hall
Two veteran real estate firms have closed on a transaction for a new development in the city of Alameda as demand for real estate there continues to rise. In a deal that was finalized just last week, Invesco Real Estate purchased a number of buildings from Oakland-based srmErnst Development Partners. In all, Invesco paid $102.1 million for the assets.
Invesco secured $99.2 million in financing from PGIM Real Estate Finance, according to The Mercury News, who first reported on the deal. The parcels are located at 1955, 2065, 2095 and 2115 North Loop Rd., and at 1410 and 1430 Harbor Bay Parkway.
The properties are part of North Loop 3, which includes multiple flex, office, and research and development buildings totaling 187,000 square feet of space. The buildings range in size from 23,955 square feet to 38,047 square feet and sit on 12 acres within Harbor Bay Business Park in Alameda. The buildings feature two-story glass entries with partial second story floor space, which can be used as an office, two loading docks and two grade doors per building and 24-foot clearance heights. According to srmErnst’s website, the cost of development is about $42 million.
srmErnst and development partner Hillwood began marketing the property for sale or lease in 2019 as the region’s industrial sector continued to grow. However, the development team thought ahead and aspired to appeal to manufacturing, life sciences and tech companies in their plans–all sectors that have benefitted from the pandemic.
“Within the industrial sector, we’re definitely seeing the growth of certain sub-industries, such as life sciences; they have been very attracted to Alameda, too,” said Steve Kapp, executive managing director at Newmark, at the time the property hit the market. “Traditionally, industrial was a minimal amount of office. Now these other industries are more employee-intensive. They are going to have more extensive build outs of office and lab areas, so the owner has positioned the property to handle that.”
Over the years, Harbor Bay has become a growing hub for medical tech and STEM companies. Surrounding firms include Exelixis, LeukoLab, Penumbra and others. North Loop 3 is also close to Oakland International Airport and 20 minutes from the Hayward/San Mateo Bridge. The development is also easily accessible by the San Francisco Ferry, BART and Interstate 880.