By Meghan Hall
A Pleasanton industrial asset has sold as demand for the Bay Area’s limited supply of warehouse product remains high. In a deal that closed at the end of April, Dermody Properties sold 4225 Hacienda Drive for $97.3 million. The buyer, according to public documents, was Florida-based Elion Partners.
According to The Mercury News, who was the first to report on the deal, Elion secured a $60 million loan from Zions Bancorporation, based in Salt Lake City.
The property is known as the Hacienda Business Park.The asset currently has just under 390,000 square feet of warehouse and industrial space, and sits on 22.4 acres. Omron Robotics and Safety Technologies currently occupies the building. Omron originally leased its 126,000 square feet at the building in the third quarter of 2019.
Dermody acquired the asset in October of 2018 from Cardinal Capital Partners. At the time, Dermody paid $63.2 million for the property.
The Tri-Valley industrial market remained strong over the course of 2020 in the face of the pandemic. While market-wide vacancy increased to 7.6 percent year-over-year since the beginning of the pandemic, asking rates also increased to $0.86 per square foot triple net.
The/Pleasanton submarket currently has about 2.5 million square feet of inventory and vacancy in Pleasanton itself remains incredibly tight. According to a first quarter report by Colliers International vacancy for light industrial space sits at about 1.9 percent. Vacancy for warehouse space is much higher, however, due to 260,000 square feet of availability at 4225 Hacienda. Colliers notes specifically, however, that if 4225 Hacienda were entirely leased, vacancy in the warehouse sector would be 0.0 percent.
Colliers states in its report that the property, newly improved, “is poised for a regional headquarters location for a logistics company.”