By Jon Peterson
The Lafayette office Scannell Properties is planning to engage as an active developer of industrial projects in Northern California going forward as it has three new developments happening in the near future in Hayward, Livermore and Manteca.[contextly_sidebar id=”tdBwUoLkjIhPFA8iJFhDAw0RhhIdd0vR”]Todd Berryhill, a director with Scannell Properties, declined to give any financial details on the projects that equal 32 acres of land across the three cities, but the three are further evidence of the region’s robust industrial market and demand for warehouse/distribution centers.
The development in Hayward is a property that will cover three acres of land where Scannell is planning to construct a building totaling 47,000 square feet. The land for this development was purchased for around $15 per square foot, according to sources that were familiar with the transaction.
The land is located on Depot Road in Hayward. “We like this location as it’s an infill site and is close to I-880 so that the tenant could move its product around fairly easily. Land is very hard to come by in the Hayward market as the area is pretty much fully developed,” says Berryhill.
The project will become a warehouse/distribution type of industrial location, and it should be completed in roughly nine months. The space is flexible enough that it could be divisible to two tenants or it could become a build-to-suit project. The property in the past had been managed by San Francisco-based Stockbridge Capital Group. The broker on the land sale was Chris Van Keulen of CBRE, he is a vice president working out of the firm’s Oakland office.
The second property that Scannell had acquired is the 10 acres of land on Patterson Pass Road in Livermore. The physical address of this location has not been determined yet. The land was acquired for around $7.10 per square foot, as stated by sources that track land sales for industrial properties.
This project has been earmarked for a build-to-suit for Roadrunner Transportation Systems. “We have signed a lease with this tenant that will last for 10 years. We will be starting this development as soon as possible. It’s our expectation that this space will be available for the tenant to move into in July of 2106,” said Berryhill.
This project will also bear the warehouse/distribution characteristics. The site is located about 1.3 miles from I-580, which will allow the tenant to move its products relatively easily across the region. The seller of the land was Livermore-based Callahan Properties, who sold the parcel through its listing agent, Michael Lloyd, an executive vice president with Colliers International in its Pleasanton office.
Scannell also has acquired 19 acres of land in Manteca within the Spreckels Business Park. The land can support the development of around 300,000 square feet of warehouse/distribution industrial space. This project could be started on a spec basis or be developed as a build-to-suit project, something the company is evaluating at the moment. A unique feature of the asset is that it will have 36 feet interior clear heights.
The developer is not sure when this project will be started. The site is located close to the I-120 and I-99 interchange. The seller of the land was San Francisco-based Prologis, and the listing agent on the sale was Blake Rasmussen, a senior vice president with CBRE in its Stockton office.