East Bay Sales Set A New Record
Industrial product on the 880 corridor is trading for a whopping $130/SF—numbers the market hasn't seen in five years. (Does that mean all our clothes from five years ago will fit again?)
A few weeks ago, 3125-3133 Osgood in Fremont, a 10k SF warehouse, traded for $1.3M, or $134/SF, to CBCJ Real Estate Investments. In Hayward, 31730 Knapp sold for $137/SF. Lee & Associates managing principal Craig Hagglund (left), with CEO Jeff Rinkov, says Q4 saw a flurry of sales up and down the East Bay, with great owner-user activity. Deals like the ones on Osgood and Knapp have reset the comps for expectations in the market.
He's also seeing more unsolicited offers from hungry investors (nobody has time for patience), like the recent sale of 31300 Hayman to KTR Capital he worked on with Jesse Lucas and Drew Fischer. KTR's plan is the redevelop the 215k SF old manufacturing center in the next two years into a state-of-the-art distribution site for a modern warehouse user. The value-add property was a great deal for KTR, which paid DR Stevens $51/SF, or $11M, in the off-market deal. KTR also scooped up the 524k SF Fairway Business Center in San Leandro—a notoriously tight market with high barriers to entry, he says.
