Colliers' Terry Healy, which represented Makita in the transaction, says Makita used the bulk of the building for a distribution, a use that will be consolidated into its other regional locations. But Makita has leased back an 11,480-sf portion of the facility that it improved for its engineering and testing division, which will remain in the building. Another small portion of the building is still being used as a Makita service center, but an alternative location is being sought, says Healy.

The buyer, Vin Sahn Properties, plans to use the property as its regional headquarters and sales office for specialty food distribution. "They really just needed the warehouse," says Healy, explaining why they were open to the leaseback arrangement. Greig Lagomarsino and Bob Ferraro with Colliers represented Vin Sanh Properties in the purchase. Mark Zamudio assisted Healy in representing Makita.

Vacancy rates in the Fremont market for industrial/manufacturing buildings dropped from 9.9% at the end of the third quarter to 7.5% at the end of the fourth quarter of 2003. The overall vacancy rate in Fremont is 11.8%.