By Jon Peterson
New York City-based KTR Capital Partners has acquired 30 acres of land in Richmond for $13.4 million, according to sources familiar with the transaction.
The development site is known as Pinole Point and could be the future home of around 515,000 of new Class A warehouse/distribution/manufacturing space.[contextly_sidebar id=”b98065548f5101751a4aab0ca7a6a05c”]The seller of the property was a joint venture of Sares Regis Northern California and New York City-based J.P. Morgan Asset Management. Sares Regis declined to comment on the pricing on the land. “I think last year we kind of established the proof of how dynamic the industrial market in Richmond can be when we completed a 117,200 square build-to-suit for Whole Foods. This led us to think about it selling the land that we had left,” says Jeff Birdwell, president of the commercial division of Sares Regis Northern California. He works out of the company’s office in San Mateo.
KTR Capital Partners did not respond to several phone calls seeking comment for this story. The real estate investment management company has a regional office in Los Angeles.
Both the buyer and seller of the property were represented in the transaction by the Oakland office of Colliers International. “I think that this transaction shows that there is a great deal of interest in East Bay industrial projects. A good reason for this is that in a market like Richmond where there is no vacancy for Class A product,” says Greig Lagomarsino, executive vice president with Colliers. He and Todd Severson, a senior vice president with Colliers, worked on the sale and have been retained as the sole leasing representatives in the new development.
KTR is planning on constructing three more buildings at Pinole Point. These will vary in size from 40,000 to 250,000 square feet. The belief is that the tenants that occupy the space will look to move their products on a regional basis.
KTR is looking to grow its industrial efforts in the San Francisco Bay Area, according to industry sources. When Pinole Point is completed, the company will have 1.5 million square feet of space in the Oakland metropolitan area. This includes projects in Hayward and San Leandro.
KTR looks to buy and develop industrial properties on a nationwide basis. It owns a portfolio of around 60 million square feet across North America and has provided nearly $7 billion of investment capacity, according to its Web site.