Prologis Pays $87M for Bay Area Industrial Asset

Blackstone had owned the property for nearly four years.

48350 Fremont Blvd

Prologis acquired the property at 48350 Fremont Blvd. for nearly $87 million. Image courtesy of CommercialEdge

Prologis has purchased a 246,450-square-foot industrial and research building in Fremont, Calif., from Blackstone, as reported by The Mercury News. The asset changed hands for $86.6 million, according to Alameda County public records.

The transaction came on the heels of the $3.1 billion all-cash deal in which Prologis agreed to acquire more than 14 million square feet of industrial assets from Blackstone. The properties are in major markets such as Atlanta, Baltimore, Washington, D.C., California, Phoenix, Las Vegas, New York and South Florida.

Prologis’ Fremont acquisition

Completed in 1989, the Class B property occupies a 10.5-acre site within Bayside Business Park. Tenants at the building include Super Micro Computer and Cintas. The asset previously traded in 2019, when Blackstone’s Link Logistics acquired Global Logistic Properties in a $18.7 billion deal, adding 179 million square feet of industrial, office and retail space to its portfolio, CommercialEdge data shows.

Located at 48350 Fremont Blvd., the property is off Interstate 880 and close to Interstate 680, roughly 10 miles north of downtown San Jose, Calif. The building is also 10 miles from the San Jose Mineta International Airport.

Although the first half of 2023 has seen a significant reduction in industrial transactions, registering $21.2 billion through June, compared to the $55 billion figure recorded during the same period of last year, the average per-square-foot price has risen slightly from 2022’s $124, reaching $129, a recent CommercialEdge report reveals.

The Bay Area continued to lead the nation in terms of sale prices, registering a whopping $355 per square foot in June, according to the same source. The area’s industrial investments totaled more than $1.2 billion in the first six months of the year.

You May Also Like