By Jon Peterson
Los Angeles-based Comstock Realty Partners is offering up for sale a two-property industrial portfolio in San Leandro totaling 585,517 square foot for a single buyer to acquire. The properties are located at 2380-2388 Williams Street and 1717 Doolittle Drive. It’s not clear what the price point on this transaction will be.
The seller has hired CBRE to be the listing agent on the sale. One person involved in the sale is Rebecca Perlmutter Finkel, a first vice president. “This portfolio is considered to be ground zero for industrial properties in the East Bay. The assets are 10 miles from the Port of Oakland and 1.5 miles from the Oakland International Airport. It’s also very rare for a portfolio of this size to come up for sale in the Oakland/East Bay industrial market,” says Perlmutter.
The sale of the two properties should attract mostly core, core plus and possibly some high net-worth types of buyers. The expectation is that the sale of the property will be completed sometime shortly after the new year. The core plus buyers would be attracted as the current rents in the property are 13 percent below market on average.
The property located on Williams Street is a Class A logistics building. It was completed earlier this year. This property is leased to two tenants. CEVA, a logistics manufacturing services company, has a lease for around 82,300 square foot that runs until August of 2022. The other tenant is Wayfair for 81,679 square feet. This is an e-commerce furniture warehousing company with a lease that lasts to September of 2022.
The asset on Doolittle is more of a warehouse kind of property occupied by three tenants. The largest of them is Energy Recovery, which is in the business of advanced manufacturing of water and oil/gas industries. Its lease is for 170,000 square feet, and it expires in July 2028. The other tenants in the property are Service West and Zinus. This asset was originally built in 1955, but it has been renovated several times. This includes some work that was done to the property in 2017.
The Oakland-East Bay industrial market continues to benefit from very strong user demand. This coupled with a lack of new construction has led to rents growing 12 percent annually over the past five years, as stated by data from CBRE. San Leandro is a very tight market with the vacancy for industrial assets at 0.8 percent.