By Jon Peterson
Bentall Kennedy and Trammell Crow Company are funding with equity the $100 million, 1.3 million square foot industrial logistics development Oaks Logistics Center located at 201 Discovery Drive in Livermore.[contextly_sidebar id=”tbYujfu8reM5cIEx8uahFew7wpIVmQfy”]“This is a development project that will be funded with equity in excess of $100 million. We are providing the majority of the equity. Our development partner is Trammell Crow Company, and they are providing some equity as well. There will be no construction loan used on this project,” says Wes Ahrens, senior vice president and head of asset management of the industrial sector for Bentall Kennedy. He works out of the company’s regional office in San Francisco.
This project will represent one of the largest industrial investments ever made by Bentall Kennedy though it’s commingled investment fund, the Multi-Employer Property Trust.
The project broke ground today on a spec basis and the buildings will be delivered to the marketplace by the fourth quarter of this year. “I would be very disappointed if we don’t have some leases signed up for the project within the next four to five months,” said Ahrens. All of the space will be started at once in three buildings. The targeted audience from a tenant perspective will be a mixture of e-commerce, retail companies and technology firms. When the project is at full occupancy, it will be supporting a total of 700 full-time jobs.
“This development will be the largest spec industrial development in the Tri-Valley region and one of the largest projects in Northern California,” says Will Parker, a principal with Trammell Crow’s Northern California Business Unit.
The marketing of the project from a leasing perspective begins today. This will be a joint effort that includes Bob Ferraro, senior vice president with CBRE in Oakland, Blake Rasmussen, a senior vice president with CBRE in Stockton and Michael Lloyd, an executive vice president with Colliers International in Livermore.
This development should give companies that are looking for large blocks of space a sizeable opportunity. Currently there are very little options for tenants who are seeking 100,000 square feet or more of space in the marketplace. One of the reasons for this that a great deal of industrial space in the Tri-Valley Region and the I-880 corridor has been converted into other property types over the past few years.
The Multi-Employer Property Trust is an open-ended commingled fund that has Bentall Kennedy as its real estate advisor. This 1982 vintage fund has a portfolio valued at $7 billion. It’s backed by 320 institutional investors across the country, which includes 17 multi-employer and public pension plans based in Northern California. One of these is the Northern California Carpenters Pension Trust Fund.