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Cybersecurity company Fortinet paid $65M for a warehouse — an active Coca-Cola bottling plant — in Union City, California. This transaction follows several real estate purchases made by the company in Union City over the past six years, according to The Mercury News.
The nearly 59K SF property at 1551 Atlantic St. marks a total of $166.9M in acquisitions by Fortinet in Union City in the last year.
The Atlantic Street purchase is adjacent to other properties purchased by Fortinet in Union City, which includes a Macy’s Furniture Outlet store, which the company acquired earlier this year for $65.7M, according to the Mercury News.
There is no indication of what Fortinet plans to do with the Atlantic Street property.
The cybersecurity company is headquartered in a 172K SF Sunnyvale, California, property on which it began construction in 2019.
Fortinet doubled down on its real estate expansion plans in a Securities and Exchange Commission 10-Q filing in March, stating, “If we do not appropriately manage any future growth, including through the expansion of our real estate facilities, or are unable to improve our systems, processes and controls, our operating results will be negatively affected.”
CBRE’s recent Q2 report on the state of the East Bay industrial market noted an extremely low vacancy rate in Union City — 1.6%, one of the lowest in the East Bay.
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