By Jon Peterson
The trading of two Union City industrial assets in off-market transactions signals that on the industrial side, there are deals to be had, and the industry continues its strong performance in that product type. The two deals, which closed recently totaled $34 million and were put together for both the buyer and seller by Jon Cook, the owner of Hayward-based Townsend Commercial Real Estate.
The larger of the two deals was the $18 million sale of the 96,000 square foot property located at 33401 Central Avenue. That price comes to $187.5 per square foot. The seller of the property was Tony Liu and the buyer of the property was Grand JK.
“The seller of the property had owned this asset for 20 years and ran his business in the property. He had made the decision that he wanted to retire and with the demand for industrial assets in the East Bay, now was a good time to take this action. Liu had acquired this property for $3.5 million,” says Cook.
The sale of this property was not a cap rate deal as it was a trade from one use to another. Grand JK is a cabinet wholesaler and distributor in North America. The company will use the property that it acquired in order to expand its operations throughout the region. It currently has space leased in two Prologis-owned industrial buildings in Union City that total around 80,000 square feet.
The other property that was sold is located at 725 and 34343 Zwissig Way in Union City. The sales price on the two 51,000 square foot buildings was $16 million, or nearly $314 per square foot. This was another user to user transaction with no cap rate involved.
The seller was Jatco, a manufacturing firm. “The owners of the buildings made the decision that they wanted to move its operation to Stockton, since that city would offer more opportunities to solve its labor and power issues,” said Cook. The buyer of the property was Healthy Pets, a pet supply company.