By Jon Peterson
Gardena, Calif.-based Overton Moore Properties has broken ground on its 691,000 square foot industrial development The Crossings @880 in Fremont.
“We are very excited about this project. We expect the total development cost will be in excess of $62 million. We have Wells Fargo Bank as providing constriction debt for the development. Our equity partner with us here is Chicago-based LaSalle Investment Management,” says Timur Tecimer, chief executive officer for Overton Moore.
The project will be the largest industrial business park to be constructed over the past 15 years within the San Francisco Bay Area. “This is the case because the area is very hard to get projects entitled and approved by the communities. The City of Fremont has been very supportive of our project from the beginning,” said Tecimur.
There will be a total of three buildings in the project. It will have 32 foot clear heights and ESFR sprinklers with a parking ratio of two per 1,000 square feet. It will be targeted for distribution and manufacturing uses. “I would think that the distribution companies would be looking at this site as a way to move their products around the greater San Francisco Bay Area,” said Tecimur.
One of the project’s buildings will total 175,000 square feet and will be a single-tenant. The second building is for 205,000 square feet and has been designed for anywhere from one to four tenants. The last 311,000 square foot building could be for one to two tenants. “I would think that the rents in the project could be in the range from the high 50s to low 60s per square foot on a triple-net basis for full service,” said Tecimur.
Overton Moore sees that this project is in a great location. “You take the exit off the 880 Freeway and turn right, and there is our project. This is good for our tenants, and it’s also very hard to find a site with 3,600 square feet of freeway frontage,” said Tecimur. The daily traffic counts along I-880 are more than 168,000.
The leasing efforts on the project will handled by CBRE. The players involved are Rob Shannon, a senior vice present in San Jose, Joe Kelly, a senior vice president in Palo Alto, and Bob Ferraro, senior vice president in Oakland.
This will be Overton Moore’s only project in Northern California. The company now owns and manages more than six million square feet of office, industrial and mixed-use space in California and Arizona.