Hines JV Launches Bay Area Project
First Citizens Bank & Trust Co. provided a $54.2 million construction loan.
A joint venture between Hines Interests and Oaktree Capital Management has broken ground on Milmont Industrial, a 267,000-square-foot advanced manufacturing and distribution facility in Fremont, Calif. Completion is expected next year.
First Citizens Bank & Trust Co. issued a construction note of $54.2 million in 2023, public records show. CBRE Executive Vice Presidents Brad Zampa and Mike Walker, alongside Senior Director Megan Woodring, secured the financing.
The partnership purchased the infill, 14-acre unentitled industrial site for $47 million in 2021. Three buildings, which dated back to the 1980s, were demolished to make room for the new structure.
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Upon delivery, the facility will feature 36-foot clear heights and flexible design. CBRE will handle the marketing and leasing efforts.
Located 10 miles north of downtown San Jose, Calif., at 49000 Milmont Drive, the site is part of the Warm Springs District—an area known for its concentration of companies in the semiconductor, tech, EV and life science industries. The property is roughly 1 mile from interstates 880 and 680.
Bay Area’s robust industrial pipeline
Bay Area’s supply pipeline totaled nearly 4.4 million square feet of industrial space—accounting for 1.5 percent of stock—as of March, according to a recent CommercialEdge report.
One large future addition to this pipeline will pertain to Related Cos.’ $8 billion, 9.2 million-square-foot mixed-use development in Santa Clara, Calif. The mega project was initially planned and approved for 5 million square feet of office space and 1,680 multifamily units, together with 700 hotel keys. However, Related recently applied with the city to replace most of the office space with up to 1.6 million square feet of light industrial and manufacturing space.
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