Duke Realty Purchases Former Scrap Metal Foundry, Plans Redevelopment
Duke Realty has purchased a 15-acre piece of land with an existing industrial building at 7825 San Leandro St. in Oakland, California, and intends to redevelop it, according to The Mercury News.
The site is the current location of AB&I Foundry, a scrap metal company that announced its plans in March to relocate to Tyler, Texas. The scrap metal business has been at this location since its founding in 1906. It plans to shut its doors in Oakland in the first half of 2023.
Duke Realty purchased the site from Bosley Investments and McWane Inc. in an all-cash transaction for $62.8M. Public records indicate Duke is aiming to build a 325K SF industrial building with 25K SF of offices.
“The proposal creates a thriving employment center and is designed to conform to the industrial nature of the area,” Duke said in a proposal filed with the city of Oakland. “The proposed project represents an opportunity to develop a best-in-class modern industrial building representing a significant investment in East Oakland.”
AB&I was sued by the state of California and Oakland-based environmental groups earlier this year due to purported violations of California’s Proposition 65, which requires businesses to warn residents about exposure to dangerous chemicals.
Duke Realty has experienced strong financial performance this year, in part due to its speculative development deals and rent growth. It has drawn the attention of Prologis, which has made multiple offers to buy Duke, thus far to no avail.