(EDITOR’S NOTE: The sales price on the assets was $82.5 million, according to sources familiar with the transaction. The new owner is planning to spend another $50 million to improve the property and create more power at the site. The tenants it will be targeting going forward are manufacturing tenants that require additional electrical capability. The seller was a private partnership associated with Adam Goldenberg of San Francisco, and Eastdil Secured was the listing agent on the transaction. This investment by the buyer will represent its first completed transaction in the San Francisco Bay Area since it exited the market in 2018.)
ScanlanKemperBard (SKB) has announced a joint venture with an existing capital partner, to acquire 1960 – 2030 Mandela Parkway and 2401 Peralta St. in Oakland, CA, a 439,368 rentable square foot urban industrial portfolio located in the largest city in the East Bay and the geographic center of the San Francisco Bay Area.
With West Oakland quickly becoming one of the Bay Area’s leading manufacturing, bioengineering and research locations, SKB plans to reposition the manufacturing facility into a multi-tenant industrial campus, catering to a diverse set of users. As the line between software, science and manufacturing operations converge, these dynamic advanced manufacturing and flex-tech users are reconfiguring their operations and real estate requirements to accommodate both the engineering talent and the equipment that produces their products.
Current tenants at the American Steel Portfolio span industries such as bio-engineering, drones, medical devices, advanced manufacturing, and space/satellite communications. SKB looks to further attract tenants focused in these segments through an intensive capital improvement program, which will transform the property into a Class A Manufacturing and R&D Campus.
According to SKB President, Todd Gooding, “The American Steel Block represents our 9th Urban Industrial investment encompassing over 2.5 million SF that caters to Advanced Manufacturing tenants. This asset class has been our best performer in our portfolio during Covid.”
SKB Senior Vice President, Gregory M. Scharlemann, added, “This is an exciting redevelopment opportunity for SKB and the Oakland market. We’re already seeing strong interest from advanced manufacturing and R&D users during a short marketing period, reaffirming the demand and need for space like this in the Bay Area.”
SKB is an established real estate developer and operator based in Portland, Oregon. Since its inception in 1993, SKB has originated total portfolio activity of $4.7 billion, comprised of 30.6 million square feet of office, industrial and retail space and 2,154 residential units. With longstanding relationships in each of its markets, SKB has the ability to source, structure and execute value creation across a wide spectrum of real estate opportunities. Visit SKB online at www.skbcos.com to learn more.