By Jon Peterson
San Francisco-based REDCO Development has purchased the existing 127,000 square foot industrial asset in South San Francisco located at 352 Shaw Road for $39 million, as stated by the buyer on its website.
The asset is located on a 4.6-acre tract. The purchase price comes to around $309 per square foot and $195 per square foot of land.
The seller of the property was Blueprint Studios, an event design and production company, and the transaction was completed as an off-market sale. Part of the sale agreement included a five-year leaseback on the property, which would allow the seller to remain the building for the foreseeable future.
“We will begin marketing the property for lease immediately, and it will be available for occupancy as early as mid-2022 given the flexible landlord termination right that was structured with the sellers,” said Chris Freise, a managing partner with REDCO. The leasing efforts on the property will be led by Matt Squires, an executive managing director with Cushman & Wakefield who works out of the company’s Burlingame office.
There is a possibility that the property could be expanded in the future, however, Freise declined to speculate on how much larger the asset could be down the road.
352 Shaw Road has seen some recent upgrades made to the property by the seller. This includes new ESFR sprinklers, new dock high and grade level loading positions on all four corners of the property, best-in-class office buildout and clear-span column free truss framing with the ability to rack three levels high.
The sale of 352 Shaw and the trade of 200-218 Shaw Road represent what is likely the last true industrial zoned assets to be sold in the South San Francisco industrial market. The industrial footprint in the market continues to decline, which has made existing product all that more valuable. Most of the other properties in the area have been either re-zoned for other uses or are already owned by companies that have little interest in selling in the near and medium term, according to industry sources.
The acquisition of 200-218 Shaw was completed by Prologis, which purchased the building for $76.65 million at the very end of last year. The listing agent on the sale was CBRE, which was led by Rebecca Perlmutter, an executive vice president with the firm.