KTR Continues Industrial Acquisitions With $9.3MM Purchase in Hayward

KRT Capital Partners, Hayward, BRAD Management, CBRE, Cassidy Turley, Oakland, KTR Industrial Fund III, industrial real estate news, Bay Area news

By Jon Peterson

New York City-based KTR Capital Partners has acquired the 150,276 square foot industrial building located at 30526 San Antonio Street in Hayward for $9.3 million or $62 per square foot, according to sources familiar with the transaction.

KTR Hayward industrial real estate The RegistryThe buyer declined to comment on the purchase price when contacted for this story. It had purchased the property though Andrew Briner, a first vice president with CBRE out of its Ontario office.

The property was sold by Santa Clarita-based BRAD Management. This real estate firm did not respond to phone calls when reached for this article.

The seller had used the services of Cassidy Turley Commercial Real Estate Services to trade the property. The brokers involved were Jay Hagglund, Tom Damaschino and Phil Haenel, all located out of the firm’s office in Oakland. The team will also be involved in the leasing of the property going forward on behalf of KTR Capital.

The property is currently occupied by International Window, a window manufacturing and assembly company. This firm will be expanding and relocating to the Central Valley region of California early this summer.

KTR Capital is planning on completing an ESFT sprinkler upgrade and an office enhancement to the asset in the future. The buyer would not comment on the cost of these improvements.

“It’s our opinion that the Hayward market is one where there are not a lot of options for tenants that are looking for space in excess of 100,000 square feet,” said Britt Sanders, business development and marketing for KTR.

The B-quality property in Hayward was built in 1977 and covers six acres, according to sources familiar with the property. The office build out is 5,000 square feet, and it has 24 feet clear height in the asset.

The Hayward warehouse industrial market has very strong occupancy. According to the first quarter research & forecast report by Colliers International, warehouse properties in Hayward have a current vacancy of 7.5 percent. In the market there is a total of 21 million square feet in 214 buildings.

KTR Capital now owns around one million square feet of industrial space in the San Francisco Bay Area. This includes a combination of existing assets and new development projects.

The real estate manager is nationally known as an investor in industrial properties. The company’s most recent capital raise was for its KTR Industrial Fund III commingled fund. The commingled fund had a final closing in August 2013 with a total equity raise of $1.2 billion.

KTR has a value-added investment strategy for Fund III. These will include buying existing properties it can improve and starting new development projects. The company favors properties in markets where there are major barriers to entry. The firm recently paid $13.4MM to acquire 30 acres of land in Richmond, Calif. The development site, known as Pinole Point, is slated for approximately 515,000 square feet of new Class A warehouse/distribution/manufacturing space. Sares Regis Northern California and J.P. Morgan Asset Management were the joint venture sellers.

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