Terreno Realty Lands $36M Industrial Asset
- Aug 07, 2018
Terreno Realty Corp. has acquired a 225,000-square-foot industrial facility in the East Bay for $36 million. The property consists of three industrial buildings and one office building, containing a respective 209,000 and 16,000 square feet.
The estimated stabilized cap rate of the asset is 5.2 percent. The seller, FJM Investments, acquired the property in 2005, according to Alameda County records.
Located at 2700 Merced St. in San Leandro, Calif., the 14.8-acre site is positioned approximately half a mile from the Nimitz Freeway, providing a direct link to much of the wider Bay Area. The buildings border a large industrial area and are 3 miles from Oakland International Airport. The Alameda-Contra Costa Transit District operates two bus routes adjacent to the asset, one offering direct access to San Francisco.
The property contains 12 dock-high doors, four drive-in doors and parking for 374 cars. The buildings are almost 82 percent leased to seven tenants, among them Applied Technologies Group, Physics International and Zayo. As four of the tenants have leases expiring before the end of 2020 with no option to renew, Terreno is considering a full or partial redevelopment of the property in the future.
In April, a joint venture between Comstock Partners and Dune Real Estate traded a nearly 600,000-square-foot industrial property a little more than a mile away.
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