By Jon Peterson
Torrance, Calif.-based Overton Moore Properties has placed on the market for sale the 14,932 square foot industrial building on a 2.71 acre lot in Oakland located at 1189 58th Avenue. The potential sales price on the property could turn out to be around $7.6 million according to sources familiar with the sale of the property.
The sale of the property is led by the Oakland office of CBRE. The team involved in the sale of the property includes Robert Ferraro and Michael Barry, both senior vice presidents at the company.
Overton Moore had acquired the property in Oakland as part of a 13-property portfolio acquisition from AT&T late last year. The price that it paid for the asset now up for sale was $3.6 million, according to public records. The portfolio included other Bay Area assets located in San Mateo, Santa Clara, San Bruno, Sunnyvale and South San Francisco.
“We do realize that now is not a great time to be selling properties, but we think that the site could be an attractive location for a user,” says Timur Tecimer, chief executive office for Overton Moore. The property now is located with an opportunity zone and is zoned for industrial development. The site has a total of roughly 118,000 square feet of land covering 2.71 acres.
The property will most likely be kept as an industrial asset. “The interest that we are getting is coming from a mixture of users or small investors that would probably keeping it as an industrial asset,” said Ferraro. The prospect of re-zoning the site for an alternate use would likely dissuade some potential buyers. “It would take a very long time to have the property re-zoned to residential, [for instance]” he added.
There are two existing tenants in the property that will give the new owner some stable and current income over the near term. One is AT&T, which has a lease that runs until November 7th of next year. This company pays an annual rent of $183,000 on a triple-net lease with 2.5 percent annual increases. The tenant also has two six-month renewal options at a rent equivalent to last month’s rent plus a 2.5 percent annual increase.
The other tenant in the property is Omnipoint Communications. This company uses the space as a cell tower. This company has a lease that lasts until January 4, 2025. The tenant also has one five-year renewal option equivalent to last month’s rent plus 4 percent annual increase.