East Bay Sizzling With Summer Deals
As the summer months take hold, activity in the Bay is slowing down. But not in East Bay, where tenants continue to seek out alternatives to dipping vacancy and outrageous prices in S.F. Here's a look at some major recently closed deals.
1. Distributor Flees S.F. for Hayward
Lee & Associates' Craig Hagglund helped distribution service UTI fish for new space once they decided South S.F. wasn't for them anymore. They desired more functional space and less expensive rents, he tells us. The tenant picked a Prologis-owned warehouse, 2368 Lincoln Ave in Hayward, signing for 70k SF. "There's limited product in the South S.F. market and rates are 30% higher than in Hayward," Craig tells us. He worked with Reid Bassinger of Lee & Associates Dallas.
2. Westcore Spends $21.6M in Oakland
The San Diego-based landlord just bought a food space/cold storage facility and an industrial warehouse along the I-880 corridor. The first: a 66k SF facility at 550 85th St for $7.75M from NDI LCC. The second: a 234k SF industrial building bought from Michael Hornstein for $13.85M at 727 Kennedy St (pictured). And during escrow, Westcore negotiated a five-year lease expansion with Pitco Foods, a wholesale grocer and distributor.
3. HP's Oakland Shopping Spree
HP Investors pulled the trigger for the first time in Oakland, buying a 9,115 SF vacant retail property in the downtown Jack London District. Pictured: HP principal and manager of the new Oakland office Isaac Abid. Now we know the purchase price: $2M with a projected $3M all-in cost upon completion of additional development costs, he tells us. And soon HP will add a second Oakland property to its portfolio. Any day it's closing on a 25k SF mixed-use building in the Uptown District for $5.5M. It's currently scouring Oakland for opportunities across multiple asset classes.