Amazon Facility in Northern Bay Area Sells
The Class A property was completed last year.
A joint venture of LDK Ventures and PCCP LLC has sold a newly completed 617,760-square-foot Class A distribution/e-commerce facility on 35.7 acres in Vacaville, Calif. Cushman & Wakefield advised the sellers.
The single-tenant asset was acquired by an unidentified global real estate investment manager for an undisclosed amount. It’s currently fully leased to “a global Fortune 10 e-commerce company,” according to Cushman & Wakefield; information from CommercialEdge states that the tenant is Amazon.
CommercialEdge data also indicates that the previous loan on the property, from August 2020, was for $51.3 million.
Vacaville is in Solano County, about midway between San Francisco and Sacramento.
The property is at 4800 Midway Road, along I-505 near its intersection with I-80, and was built in 2021. The facility features desired 40-foot clear heights, 54- by 50-foot column spacing, cross-dock loading with 130-foot truck courts, LED lighting and ESFR fire suppression.
The location reportedly provides convenient access to San Francisco International and Sacramento International airports and to the Port of Oakland.
Steve Hermann, Seth Siegel, Ryan Venezia, Rick Ryan and Kevin Flemming of Cushman & Wakefield’s Northern California Capital Markets Group represented the sellers. The firm’s Brooks Pedder, John McManus and Tony Binswanger also provided market advisory.
Between two strong markets
Hermann, an executive managing director for Cushman & Wakefield, said in a prepared statement that “investor and occupier demand for industrial product, particularly that is high quality and well located, remains very robust in the Greater Bay Area region, along with its surrounding markets.”
Pedder, also an executive managing director, added, “Vacaville and the North Bay Area market continue to draw strong e-commerce activity due to abundant labor and proximity to the geographic epicenter of Northern California home delivery.”
The Sacramento industrial space market is seeing a decided post-COVID resurgence, with total availability having fallen from 6.9 percent in 2020 to 5.4 percent in 2021, according to a fourth-quarter report from Kidder Mathews. Despite a substantial drop in leasing activity in 2021, sales volume was up, as the average asking rent increased to $0.69 per square foot, NNN.