Duke Realty Expands Industrial Footprint in Northern California
- Feb 23, 2021
Duke Realty has expanded its California footprint with the acquisition of two industrial buildings with redevelopment potential in Oakland, as well as 17.4 acres of land in San Jose and 7.9 acres of land in Richmond, where the company plans new projects. Duke’s expansion strategy in the region also calls for the construction of a 346,860-square-foot speculative development on a 19.8-acre site in Lathrop, Calif.
One of the Oakland facilities, located at 955 Kennedy St., was built in 1968. The 119,000-square-foot asset is situated within 7 miles from Oakland International Airport. CommercialEdge data indicates that Duke Realty purchased the 5-acre site for $22 million in September 2020. That same month, Duke Realty also bought the second Oakland asset, which came online in 1958. The property sold for $31 million, according to CommercialEdge. Situated at 1905 Dennison St., the 168,489-square-foot building is within walking distance of the 955 Kennedy St. facility. The company intends to redevelop both sites, the East Bay Business News reported.
In San Jose, Duke plans to develop a 302,775-square-foot facility. Located at 5853 and 5863 Rue Ferrari, the project is within 10 miles of the city’s downtown. The company also plans to build a 150,120-square-foot distribution center on the Richmond site. Located at 731 West Cutting Blvd., the development is just off Interstate 580. The Lathrop project is situated at 16825 Murphy Parkway, just off Interstate 5.
Duke will seek LEED certification for all of its upcoming developments. Once these projects are completed, the company’s Northern California portfolio will total more than 4 million square feet.
Michael Chukwueke, vice president, acquisitions and development for Duke Realty said in prepared remarks that Northern California is a strategic growth market for the company, which will continue to seek infill redevelopment opportunities in areas with low vacancy rates.
This month, Duke sold a Houston-area logistics property for $108 million. The 1 million-square-foot facility is fully leased to Amazon.