LBA Realty Pays $14.8MM for Industrial Asset in Union City

LBA Realty, Union City, East Bay, San Francisco, Bay Area, Colliers International

By Jon Peterson

Irvine, Calif-based LBA Realty has acquired the 110,000 square foot industrial property in Union City located at 33210 Central Avenue for $14.8 million or $134.55 per square foot, according to sources tracking the sale of industrial assets in the East Bay region of the San Francisco Bay Area.

LBA Realty did not respond to phone calls seeking comment for this story. The seller of the property was a private individual ownership group. Both the buyer and seller were represented in the transaction by Oakland office of Colliers International. Greig Lagomarsino, executive vice president with Colliers, and Rick Keely, senior vice president with Colliers, worked on the transaction for both parties.

The property is 100 percent leased to Corning Life Sciences Axygen Inc.

“This represented a unique opportunity for LBA Realty to acquire a high quality, advanced manufacturing warehouse facility within the highly sought-after core East Bay industrial marketplace,” said Keely.

This transaction is the latest example of institutional capital buying industrial assets in the East Bay along the I-880 corridor. The real estate dynamics in this region for industrial remain very strong. Rental rates in Union City on a year-to-year basis have increased by 30 percent or more over the past 12 months, according to sources that track the performance of industrial assets in this region.

The market continues to tighten up from a property type standpoint. The current occupancy in the market for industrial is at one to two percent. This makes it an all-time low, according to sources familiar with the market. One of the main reasons for this is the region is land locked, not allowing for any new development projects to occur.

West Coast Commercial Real Estate News