Prologis Buys Strategic Oakland Asset for $8MM

Prologis, Oakland, CBRE

By Jon Peterson

In a continued effort to shore up its footprint across its home market, San Francisco-based Prologis has acquired the 29,700 square foot industrial asset located at 5401 San Leandro Street in Oakland. The purchase price was $8 million, according to sources that are familiar with the property being sold.

Prologis declined to confirm what price the company paid for the property.

The seller of the asset was a private entity, and both the buyer and seller were represented by the CBRE office in Oakland, according to information provided by brokerage firm. The listing agents on the transaction were Michael Barry and Bob Ferraro, both senior vice presidents for CBRE.

“This property is a good representation of our strategy to buy high-quality infill assets in the Oakland market, which is one of our targeted regions for the overall San Francisco Bay Area,” says Darren Kenney, a senior vice president and investment officer for Prologis in the San Francisco Bay Area.

Prologis is very familiar with the area of Oakland where 5401 San Leandro is located. “About 18 months ago, we acquired another property from the same private seller at 6815 San Leandro Street that totals about 3.94 acres,” said Kenney. The purchase price on that property was $8.8 million, according to public records.

The public REIT’s most recent deal in Oakland is now 100 percent occupied by four tenants. The leases with these tenants have between one and five years left, and Prologis would not comment if the existing leases are at or below market levels. One of the tenants in the building conducts its business with the port of Oakland. The other three tenants use its space for transportation and logistics uses.

Prologis is not planning to make any major changes to 5401 San Leandro in the short term. “Our immediate plans are to keep the property as is. There is a potential on a long-term basis to have the property redeveloped. This would not change the size of the property,” said Kenney.

Both of the properties on San Leandro Street in Oakland are considered to be core assets. 6815 was purchased for the Prologis Targeted U.S. Logistics Fund, as stated in public records. This open-ended commingled fund has a net asset value of $12.3 billion, as of the end of March 2020. This information was stated in a board meeting document for the Ohio Bureau of Workers Compensation. This investor has an investment in the fund valued at $160.2 million, and the commingled fund has 48 percent of its portfolio located in the West, the largest amount of any region in the country.

West Coast Commercial Real Estate News