First Industrial Realty Trust has acquired a 62,474-square-foot warehouse and distribution facility in San Leandro, Calif., for $12.3 million. The seller was e Poly Star Inc., a polyethylene specialty manufacturer, which continues to occupy the property.
The current acquisition brings the REIT’s footprint in the Northern California industrial market to more than 184,000 square feet.
The Class B facility was constructed in 1970 and features 11 dock-high loading doors. According to CommercialEdge, e Poly Star acquired the property in 2010 and has occupied it since. The new owner plans to deploy capital improvements at the site, including a lighting upgrade, roof replacement and a seismic retrofit. The renovations are slated for a third quarter completion.
The industrial asset is located at 2085 Burroughs Ave., near Interstate 880. Oakland International Airport is roughly 4 miles away, while the Port of Oakland is within 10 miles from the property.
The vacancy rate in the East Bay Oakland industrial market stood at 5.7 percent by the end of the first quarter, a Cushman & Wakefield report shows, rising 110 basis points year-over-year. Demand from both the e-commerce sector and more traditional warehouse users resulted in steadily increasing rents despite new space being added regularly.
John Quinn, regional director and market leader for First Industrial, noted in a prepared statement that Northern California’s industrial market continues to see strong demand, given its dynamic consumer base and significant supply constraints.
First Industrial Realty Trust entered the Northern California industrial market in early 2020. In the first quarter, the company purchased a 22,500-square-foot distribution center in Hayward; in May last year, the REIT acquired two adjacent properties (totaling 84,692 square feet) in Fremont, for a total price of $17.7 million, CommercialEdge data shows.
Additionally, the company is planning a new, 37,000-square-foot facility in Hayward, where earlier this year it acquired a 3-acre site. In Stockton, First Industrial Realty Trust is planning a 1.2 million-square-foot logistics center. The REIT is also active in other markets, including metro Houston, where it sold a 663,821-square-foot distribution center for an estimated $42 million to Sealy & Co.