Overton Moore Sells New Industrial Asset in Newark for $34MM

Overton Moore, Newark, Gardena, East Bay, San Francisco, Bay Area

By Jon Peterson

Gardena, Calif.-based Overton Moore Properties has sold the 142, 188 square foot industrial property in Newark for $34 million to a private buyer. The property is located at 39998 Eureka Drive.

“I think that the sales price of $245 per square foot is reflective of were the industrial market in the East Bay is going. There is limited amount of new product being added to the marketplace and very strong leasing demand for the limited amount of space available. These are the factors that are driving up pricing for industrial assets in the region,” said Timur Tecimer, president of Overton Moore.

His company had started the development of the property in October of 2015. It was begun as a spec development with no tenants. The property is now 100 percent leased to SAS Automotive. The completion of the property occurred in March of 2017.

This property is a combination of warehouse/distribution and advanced manufacturing. “Our plan had been to lease up the asset and complete it and then consider selling the building. I think all this came together a little faster than we had anticipated that it would.,” said Tecimer. The cap rate on the sale was a sub 5 percent. This return is based on the rent coming out of the property at this time.

Overton Moore sold the property through the Hayward office of Newmark Grubb Knight Frank. The listing agents were Steve Kapp, executive managing director, and Mike Sprio, senior managing director. Kapp declined to comment when contacted for this story.

Overton Moore sees very strong market fundamentals for industrial property in the East Bay. “I think this is a market currently represented by rising rental rates and rising property values. It’s one that we will continue to look for investment opportunities in this region in going forward,” said Tecimer.

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