BKM Capital Partners has acquired the 165K SF Hannover Industrial Park in Fremont for $43M, marking its latest bet on Silicon Valley’s high-demand I-880 Corridor.
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In December, the company also acquired Gateway Business Center, a 95K SF business park at 4500 Fremont Blvd. off I‑880 in Fremont, and Shoreline Business Center, an 8K SF property also located directly off I‑880.
Hannover Industrial Park consists of six buildings, and 14% of the square footage is office space. The property is 74% occupied.
The $43M price tag represents a discount from the 2023 purchase price, according to BKM Senior Managing Director of Acquisitions and Dispositions Brett Turner. The company plans to put $1.3M into improvements to the property.
Fremont’s proximity to the Port of Oakland means it is vulnerable to instability stemming from tariffs and economic uncertainty. But industrial vacancy in the city sits below 6%. It was home to three of the five largest leases signed in the East Bay in the first quarter, according to Cushman & Wakefield.
The wider East Bay industrial market saw a 33% increase in leasing activity, the highest in two years. There was also an increase in new leasing, which could be attributed to businesses looking to secure space ahead of cost increases linked to tariffs.
Fremont is home to manufacturing and hardware firms that support Silicon Valley’s broader tech supply chain.
