MetLife Buys First Industrial Site in San Francisco Bay Area

MetLife, San Francisco, Cushman & Wakefield, Amazon, East Bay, American Realty Advisors, McShane Companies, Conor Commercial Real Estate, Bay Area

Cherry_Logistics_Center

By Jon Peterson

New York City-based MetLife has acquired its first industrial asset in the San Francisco Bay Area, according to sources who are familiar with the life insurance company. The investor has bought the 574,647 square foot Cherry Logistics Center in Newark located at 38811 Cherry Street. The only other industrial asset in owns in Northern California is in Patterson near Interstate 5 in the Central Valley.

MetLife declined to comment on the transaction when contacted for this story.

The seller of the property was a joint venture partnership of Los Angeles-based American Realty Advisors and Conor Commercial Real Estate, a unit of Chicago-based McShane Companies. American Realty declined to comment when reached for this story. Conor also did not respond to phone calls.

The sellers sold the asset through its listing agent, the San Francisco office of Cushman & Wakefield. George Eckard, an executive director in capital markets for the brokerage firm, did not return phone calls.

MetLife paid around $152 per square foot for the property, according to sources familiar with the transaction. The life company acquired the property for its general account.

The Cherry Center is a brand new industrial property that is fully leased to Amazon.com. The property is a Class A cross-dock LEED-silver distribution property, and it sits along the I-880 corridor in the East Bay city.

MetLife sees this asset having a very good location and being situated in a strong industrial market, according to sources familiar with the buyer. The core asset is placed in an infill location with high barriers to entry and in one of the top performing industrial markets in the county. The location is one of the most strategic areas for distribution in the Bay Area given its proximity to major employment nodes and access to connecting interstate and local area highways.

MetLife has two capital sources for its future investments in the San Francisco Bay Area. These are the general account of its life company and its core open-ended commingled fund, MetLife Core Property Fund. The investment firm looks for a variety of assets in the region including apartment, office buildings, industrial, retail and hotels on a selective basis.

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