By Jon Peterson
Kansas City-based NorthPoint Development has placed on the market for sale a brand new 145,503 square foot last mile delivery station industrial property in Oakley located at 6200 Bridgehead Road, according to sources that track the sale of industrial properties in Northern California. While this asset will likely garner some interest from various investors given that it is built for Amazon, no pricing guidance was provided on the potential sale of the property at this time.
The seller is working on the sale with CBRE as its listing agent leading the marketing efforts. Among those involved in the initiative are Michael Caprile, vice chairman, Darla Longo, vice chairman/managing director, and Rebecca Perlmutter, executive vice president. CBRE declined to comment when contacted for this story.
The planned sale of the property is projected to produce a cap rate in the range of 4.5 percent to 4.75 percent, according to sources familiar with the sale of the property. This return would be based on the building’s current net operating income. According to some estimates, core capital sources are likely to be the main investors looking to acquire the property.
This property is still under construction, and it should be completed sometime during the third-quarter of this year. The building is getting developed as a build-to-suit for Amazon, which has signed a 12-year lease for the property that runs through September 2032. The lease also includes two percent annual contractual base rent increases. Amazon has the right to extend the lease term for four additional terms of five years each and a fifth right to extend for a term of two years and 11 months.
Amazon will be able to use this space to move products throughout Northern California and the broader San Francisco Bay Area region. The total land on which the project is constructed totals 25.1 acres. The location puts it within a 30-mile radius of Oakland and the San Francisco Bay Area.
Both the tenant and developer are responsible for different parts of building. The tenant shall repair, replace and maintain all portions of the interior non-structural portions of the premises, including any energy communications equipment, the HVAC system and the base F/LS system. NorthPoint is responsible for maintenance and repair of structural elements including roof, roof membrane, the parking areas, slab, foundation and exterior walls.
The Amazon building is located within the Oakley Logistics Center industrial park. This is a 143-acre park where a total of two million square feet of space will eventually be constructed. This space will include light industrial, warehouse/distribution, e-commerce fulfillment and light manufacturing developments. This location is on a site where a former DuPont chemical plant was located until it closed in 1998. The total investment in the project could reach $250 million once all the tenants are in the space, according to published reports earlier this year.