Black Creek Group Doubles Industrial Footprint In Northern California
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Reflecting the strength of the region's industrial market, Denver-based Black Creek Group is developing eight industrial projects totaling 3M SF in Northern California, doubling the company's footprint in this part of the state.
As of the end of June, the real estate investment management and development firm had 3.3M SF in Northern California. To that, Black Creek is adding 618K SF in completed buildings, 1.3M SF under construction and 1.1M SF of entitled space that is scheduled to start construction in Q1. The projects include logistics, distribution and light industrial.
“We have a lot experience in this thriving market," J.R. Wetzel, managing director for the Western region of Black Creek Group, said in a statement. “As a proven investor and developer in the market, we have a clear understanding of what works and where tenants want to be. It is with this understanding that our development program allows us to address the ever-growing need for Class A, infill space, especially in a land constrained area such as the Greater Bay Area, which contains a large amount of older, functionally obsolete product.”
The projects include:
Alvarado Commerce Center in San Leandro (155K SF); expected completion Q4 2019.
Hayward Logistics Center in Hayward (507K SF); expected completion Q3 2019.
Richmond Logistics Center in Richmond (188K SF); expected completion Q2 2019.
Silicon Valley Industrial Center in San Jose (156K SF); completed Q3 2018.
Tracy Distribution Centers III-VI in Tracy (four buildings ranging from 383K SF to 611K SF); one completed Q3 2018, one expected to complete in Q2 2019 and two in Q1 2020.
Hayward Logistics Center will be one of the largest buildings in the 880 Corridor when completed, Black Creek Group Senior Vice President of Acquisitions and Development Gregg Boehm said in the statement.
Boehm also noted the push into the growth markets of Richmond and Tracy. The Tracy distribution centers will add more than 2M SF along Interstate 5, which runs between Canada and Mexico.
“With a lack of new product in the Greater Bay Area and vacancy at all-time lows, there is an increased demand for new industrial space," he said.
Hear more about what is driving industrial at Bisnow's Bay Area Industrial Summit on Oct. 25.