Vertical Ventures Buys Fremont R&D Campus for $37.8MM

Fremont, Bay Area, Warm Springs Innovation District, Tesla, BART, Lee & Associates, Oakland, Northern California

Local Investor Continues to Build its Northern California Portfolio

WALNUT CREEK, CA (March 27, 2019) – Vertical Ventures LLC recently closed on the acquisition of a three-building office / R&D campus in Fremont for $37,800,000. The buildings are located at 49000-49090 Milmont Drive and are known as Dixon Landing Research Park. Constructed in 1985, the buildings total approximately 209,300 square feet, and are currently 100% leased to nine different tenants. The seller was a local Bay Area-based investor, which had owned the project since 2009.

Vertical Ventures plans to invest additional capital into the project, including renovations to building exteriors, common areas, landscaping, and outdoor amenity areas. “This is a high-quality project, with a great location, in a very desirable Fremont submarket” says Christopher Aust, head of acquisitions for Vertical Ventures. “We feel like we have a strong basis and the opportunity to add significant value through physical renovations and active asset management” he added.

The property is located within the Warm Springs Innovation District, just east of Interstate-680, between Kato Road and Dixon Landing Road. While average monthly asking rents for R&D space in the submarket average approximately $1.50 per square foot, current rents in the property are approximately half of that. “We like the competitive position within the market that this project enjoys, and the opportunity to increase value” says Vertical Ventures’ founder and President, Hamid Rezapour.

Fremont has undergone significant growth in recent years, bolstered in part by the growth of Tesla, the addition of the new Warm Springs BART station, and thousands of new housing units coming on line. Many Bay Area R&D users are viewing Fremont with new enthusiasm, based on the new BART access, accessibility to major freeways, and new housing availability. Vertical Ventures has evaluated several property offerings in Fremont over the past few years and were compelled to execute on this opportunity. “We’re definitely excited to add this high-quality asset to our growing Northern California portfolio” adds Rezapour. Andrew Stoddard and Garrett Drew of Lee & Associates’ Oakland office represented the buyer in the transaction and will also handle the leasing assignment for Vertical Ventures.

About Vertical Ventures
Founded in 2004, Vertical Ventures is an established, highly-focused investor, developer and operator of institutional quality commercial real estate assets. The firm concentrates on identifying, acquiring and revitalizing well-located, quality projects that are temporarily undervalued. The firms’ primary focus is on office, R&D and industrial properties in well-established, supply-constrained, submarkets in Northern California. The professionals of the firm average nearly 20 years’ experience transacting and operating real estate and generating attractive investment returns from both institutional and entrepreneurial platforms. Investments are made on a direct and joint-venture basis, in collaboration with select institutional and high-net worth individuals and family offices. More information available at www.verticalventuresllc.com

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