By Jon Peterson
Sacramento-based LDK Ventures has paid approximately $11 million to acquire 42 acres of land in the Pinole Business Park in Richmond located at 5000 Giant Road, according to sources familiar with the transaction.[contextly_sidebar id=”ecfdeb261b94d9a6dadf1ce6a3bdc1b0″]The land could eventually support the development of around 700,000 square feet of industrial distribution kind of space.
“This is our first project in the San Francisco Bay Area. We have a lot of work that needs to be done to the site before we start the new project. This would include the demolition of an existing 350,000 square feet steel factory and some work to clean out the toxic issues with the site. It will probably take us the rest of the year to complete this work,” says Denton Kelly, managing principal for LDK Ventures.
Its unclear how many tenants will end up occupying the space. It could be one or several. The office component build-out will be in the range of 5 percent. Any tenants that go into the project will likely look to move their respective space either around the San Francisco Bay Area or to the Central Valley on a regional basis.
The seller of the land was a private company from Mexico. It was represented by the Oakland office of Cushman & Wakefield. “There was a good amount of interest in the site. This transaction was a little different because of the toxic issues with it. I do know that Tesla at once point had looked at the site for its own purposes,” says John Troughton, a senior director for Cushman & Wakefield in Oakland. He represented the seller in the transaction.
He does believe that the project could attract some potential large users for it. “There are many large users in the Bay Area that are looking for large blocks of space that this project could accommodate. One is Amazon. Another is Ashley Furniture which is looking at finding a site in the Bay Area for 600,000 to 700,000 square feet,” said Troughton.
Denton isn’t sure if the project will be started on a spec basis or not. “This is not clear at this time. This depends on what happens in the marketplace over the next year,” he said.
LDK Ventures is a developer of industrial projects known around the Sacramento market. This includes the McClellan Business Park in the Sacramento area.