By Jon Peterson
Livermore-based Shea Properties will be expanding its commercial real estate development efforts into industrial properties for the first time with the development of Shea Center Hayward in Hayward.
The company recently acquired 14.2 acres for the project for $8 million, according to sources that track land sales in the East Bay. The seller of the land was Eden Shores Associates I, LLC.
[contextly_sidebar id=”jmJCsyDqDk9avhR5NOu4HzSroYgNsRHL”]Shea declined to comment on what it paid for the land. “We think now is a good time to be starting a new spec industrial project in Hayward. The market for manufacturing/light industrial in that market remains very tight. Vacancy for this kind of space is currently in the range of two percent to three percent. There should be plenty of demand for our project going forward,” says Steve Schafenacker, a senior vice president of California development with Shea Properties.
The buyer and seller of the land were represented by the Oakland office of Colliers International. “There is a limited amount of land remaining to construct Class A industrial projects in infill locations such as Shea Center Hayward. We are seeing demand for land increase and this is a pattern we expect to continue well into next year,” says Greig Lagomarsino, an executive vice president-corporate director for Colliers International in a prepared statement. He worked on the sale along with Mark Maguire and Kevin Hatcher, both senior vice presidents with Colliers Oakland office. All of the listing agents declined to comment on the land price on the transaction.
It will be a while before Shea Properties will start on the development on the project in Hayward. “We are planning now not to start construction until the summer of 2016. We figure that it will take us 10 to 12 months after we start to complete the project. The city of Hayward was a pleasure to work with on this project,” said Schafenacker. The project does have a flexible design that could allow the project to be leased to single or multiple tenants.
The entire project covers the development of four buildings totaling 274,998 square feet. The buildings will vary in size from 32,000 to 115,000 square feet. The leasing agent on the project going forward is the Oakland office of Colliers International led by Lagomarsino. The buildings in the project are planning to have around 10 percent of the space set aside for office usage. The other features are 26’-32’ ceiling heights, 800-2,000 amps of power, dock high and grade-level loading capabilities and 198’ truck courts with 60’ dock aprons.
Shea Properties is known as a major owner and developer of commercial properties in Northern California. This would include property types like apartments, office and retail. Most of the assets that it builds the company prefers to hold onto on a long-term basis.