Westcore Properties Acquires Cold-Storage Industrial Facility In Oakland For $7.75 Million
In response to the growing need for specialized food distribution spaces, Westcore Properties has acquired a modern, Class-A cold storage building for $7.75 million in Oakland, California from NDI, LCC.
The 66,913-square-foot facility is located along the I-880 corridor at 550 85th Street and features 14,000 square feet of refrigerated space. Built in 1999, the facility is much more efficient than the older facilities in this area that are popular among food production companies. A secured site, heavy power, state-of-the-art refrigeration equipment, and modern and ample office space are amongst the many attractive features of the property.
“With the desire for fresh and high-quality food growing, the demand for industrial food spaces within urban areas continues to expand” said Peter Mette, Westcore Properties’ director of acquisitions for the Bay Area. “Given the age of other similar buildings in the Bay Area, the fact that we have been able to acquire a modern building in such a high-demand area speaks highly for our team. We are actively seeking a tenant to fill this space.”
Food-grade distribution and manufacturing spaces, also known as food spaces, are critical components in the food storage chain between farm and table, with a current vacancy rate of less than one percent throughout California.
In this transaction, NDI, LLC was represented by Mark Maguire and Kevin Hatcher with Colliers International. Westcore Properties was represented by Mette.
Westcore Properties Acquires Industrial Facility In Oakland For $13.85 Million
As industrial space along the I-880 corridor in Oakland, California continues to be in high-demand, Westcore Properties has acquired a 234,877-square-foot industrial building from Michael Hornstein for $13.85 million. Additionally, during escrow, Westcore Properties successfully negotiated an approximate five-year lease expansion with Pitco Foods, a wholesale grocer and distributor.
Located at 727 Kennedy Street along the I-880 corridor, the building was built in 1952. The building is currently 98 percent leased, with Pitco Foods now utilizing 138,000 square feet and Saroni Sugar & Rice, a food ingredients distributor owned by ConAgra Foods, occupying 86,000 square feet.
“Industrial market demand throughout the I-880 corridor is extremely healthy and enabled us to successfully expand Pitco Foods presence in this facility during our escrow period to lease the majority of the available warehouse space,” said Peter Mette, Westcore Properties’ director of acquisitions. “While we’ve already created value in our new acquisition through this expansion, we intend to further improve the project and lease the remaining 11,000 square feet of vacant showroom or office space.”
In this transaction, the seller was represented by Andrew Briner with CBRE Group. Westcore Properties was represented by Mette and Hack Adams, the company’s senior vice president.
About Westcore Properties
Westcore Properties is a private, entrepreneurial commercial real estate investment firm with a specialized focus in the western United States and key European markets. Since its founding in 2000, Westcore Properties and its affiliates have acquired and managed more than $4 billion in industrial and office assets comprised of more than 750 buildings totaling over 35 million square feet. In addition to its U.S. headquarters in San Diego, Westcore Properties has regional offices in San Francisco, Oakland, Sacramento and Denver. The firm’s European offices are located in Berlin, Geneva and London.
