Terreno Realty Acquires 65 KSF San Francisco Industrial Property

Terreno Realty Corp. has acquired India Basin Commerce Center, a 65,000-square-foot industrial building in San Francisco, for $25.9 million. The seller was not disclosed, though the previous owner is listed as Lowenberg Corp., according to Yardi Matrix.

The 3.8-acre, Class B site is in the India Basin neighborhood and provides 17 dock-high and 10 grade-level loading positions, along with parking for 95 cars. The building is fully leased to four tenants, and Terreno noted that the leases expire by May 2031. The firm estimates the stabilized cap rate at 5.5 percent.

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A Terreno spokesperson did not reply to Commercial Property Executive’s request for additional information.

The property is located at 201-395 Mendell St. and was completed in 1979, according to Yardi Matrix. Downtown San Francisco is about 4 miles away, while San Francisco International Airport is some 11 miles.

San Francisco industrial ticks up

San Francisco’s industrial space market has seen a bump in leasing activity so far this year, with vacancy declining by 60 basis points to 8.3 percent, according to a first-quarter report from CBRE.

Although distribution space improved in the quarter, manufacturing facilities saw significantly more demand, as vacancy dropped from 14.1 percent to 12.1 percent.

In the Bayview/Hunters Point submarket specifically, total availability is 12.5 percent on an inventory of nearly 7.6 million square feet, along with a modest 46,600 square feet of net absorption in the first quarter, CBRE reported.

In March, Terreno sold a 231,000-square-foot, two-building industrial park in Gardena, Calif., for $44 million. Located at 1855 W. 139th St., the park is about 14 miles southwest of downtown Los Angeles. Terreno had paid $37.6 million for the asset in 2017.