A 278,905-square-foot single-tenant industrial property in Burlingame, Calif., has traded for $55 million. According to public records, the buyer was Finn Capital, a San Mateo-based firm, while the seller was a Missouri-based private investor.
Colliers Executive Vice Presidents Tim Maas, Mike Davis, Tony Crossley and Vice President Darren Kuiper represented both parties. The team marketed the transit-oriented property on behalf of the seller.
The site includes a 1957-built, single-story warehouse that was fully occupied at the time of sale by Lahlouh Inc., an end-to-end communications management services company. According to CommercialEdge data, the property became subject to an $8 million loan held by Symetra Financial in 2017.
The property is located at 1649 Adrian Road, featuring over 645 feet of frontage along Highway 101. According to Maas, the asset presents significant rental upside and redevelopment potential, largely due to its location. The Class B warehouse totals 129,759 square feet and has 22 dock-high loading doors, 20-foot clear heights, HVAC systems and a parking ratio of 1.45 spaces per 1,000 square feet.
The asset’s location, 4 miles south of San Francisco International Airport, provides for direct access to Highway 101 and Interstate 280. A BART station is less than a mile north. The surrounding area includes companies such as Vector Laboratories and Corvus Pharmaceuticals, among others.
A strong year for the sector
According to Colliers research, the San Francisco-Peninsula R&D market experienced its fourth quarter of positive net absorption, while average triple-net asking rents for R&D reached a new peak of $5.09.
The latest CommercialEdge report shows that nationally, average rents for industrial properties increased 4.4 percent over the year through May. The markets with the highest rent growth nationwide were the Inland Empire (7.1 percent year-over-year through May) and Los Angeles (6.7 percent). Record port activity in California has led to some of the lowest vacancy rates in the country, as space becomes increasingly difficult to find in the hottest industrial markets, while demand shows no signs of slowing.