Richmond, Calif. – March 7, 2014 – Colliers International announced today that KTR Capital Partners (“KTR”) and Sponsor Properties (“Sponsor”) closed on the acquisition of Pinole Point in Richmond, CA. Pinole Point is a master-planned industrial park situated on approximately 30 acres of land. The development site allows for over ±515,000 square feet of Class ‘A’ warehouse/distribution and/or manufacturing space comprised of three freestanding buildings ranging in size from approximately 40,000 square feet to 250,000 square feet. The sale price was undisclosed.
KTR and Sponsor will develop the vacant land into a state-of-the-art industrial park with institutional quality buildings featuring ESFR sprinklers, 32’ minimum interior clearance heights, large truck courts, extensive dock-high loading and secured yard areas. The land is fully entitled and ready for construction. Ground-breaking is scheduled for Summer 2014. Sponsor Properties and KTR were brought together by Sacramento based Preferred Capital Advisors.
“This is an attractive opportunity to acquire a sizeable land position in the high barrier to entry Bay Area market. With the scarcity of Class A industrial product in this corridor, we plan to begin construction on a speculative basis” says Brian Gagne, Senior Vice President of Investments for KTR Capital Partners. KTR and Sponsor acquired the business park from Sares-Regis Group. This acquisition brings KTR’s total footprint in the Oakland metro area market to approximately 1.5 million square feet when completed.
Sares-Regis Group purchased the business park from a developer, Pinole Point Properties, Inc., in May of 2008. They acquired three buildings at Pinole Point Business Park along with 43 acres of adjacent developable land for future build-to-suit developments.
In 2010, Industrial Income Trust acquired a ±721,204 square foot portfolio from Sares-Regis Group. The three industrial buildings totaling ±474,754 square feet at Pinole Point Business Park were included in that portfolio along with a forth building of ±246,450 square feet located in Fremont’s Bayside Business Park. Sares-Regis Group retained the ±43 acres of land at Pinole Point and completed a ±117,200 square foot build-to-suit for Whole Foods Market last year. Soon after construction was completed for the freezer/cooler warehouse building, MMB Management, LLC acquired the property from Sares-Regis Group.
Pinole Point Phase I is currently 100% leased to tenants such as Restoration Hardware, Serena & Lily, Broadline Medical, International Delicacies and Bio-Rad Laboratories. The business park is strategically located in a highly sought after Bay Area in-fill location near Interstates 80 and 580 providing convenient access to the Bay Area’s three international airports and the ports of Oakland and Richmond.
“This is a significant transaction and an excellent sign that the market is moving in a positive direction. Institutional investors and developers are more active in the market now than they have been in over a decade,” said Greig Lagomarsino, SIOR, Executive Vice President with Colliers International’s Oakland office who represented both the Buyer and Seller in this transaction along with Todd Severson, SIOR, also of Colliers’ Oakland office.
Greig Lagomarsino, SIOR and Todd Severson, SIOR have been retained as the exclusive leasing representatives for the business park.
About Colliers International
Colliers International is a global leader in commercial real estate services, with over 13,500 professionals operating out of more than 482 offices in 62 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.
About KTR CAPITAL PARTNERS
KTR Capital Partners is a real estate investment, development and operating company focused exclusively on the industrial property sector. Headquartered in New York City with offices in Philadelphia, Chicago, Dallas, Las Vegas, Los Angeles and Miami, KTR has a 75 person platform that manages a series of discretionary value-add investment funds that target opportunities throughout major markets in North America. KTR funds currently own a portfolio of approximately 53 million square feet across North America and provide nearly $7.0 billion of investment capacity. For additional information, please visit www.ktrcapital.com.
About Sponsor Properties
Sponsor Properties provides commercial real estate development and investment expertise to partners and clients in the western United States with a focus on all phases of industrial development plus commercial property and asset management. For additional information, please visit www.sponsorproperties.com.