PSAI Realty Lands $51M for Bay Area Facility

PSAI Realty Partners has landed a $51 million loan backed by a 138,410-square-foot facility in Sunnyvale, Calif., according to CommercialEdge information. City National Bank’s Los Angeles branch originated the 10-year financing.

The Class B property occupies 8 acres at 1220 E. Arques Ave., close to Lawrence Expressway and Bayshore Freeway. San Jose Mineta International Airport is 6 miles away, while downtown San Francisco is within 42 miles.

Formerly known as Building M4, the facility was part of Fujitsu’s Sunnyvale campus. The 1978-built R&D property features HVAC control systems, sky lights, an ample truck court and 118 vehicle parking spots. It was last upgraded in 2013.

PSAI picked up the property for $31 million in 2023 from Fujitsu, which had used it as one of its research facilities. The Japanese company had moved to Building M4 after Lane Partners paid $104 million for most of its campus back in 2020.

High sale prices across Western U.S.

Western markets commanded the highest industrial sales prices in the U.S. as of February, according to a recent CommercialEdge report. The Bay Area’s average sale price stood at $292 per square foot, a value outperformed only by Orange County’s $340 per square foot and more than double the national average of $127 per square foot.

Most western markets also maintained industrial vacancy rates below the national average of 8.2 percent that month, the report shows. The Bay Area’s rate stood at 8.1 percent, while the lowest in the region was recorded by Central Valley’s 7 percent.