TIC Properties Acquires 300,000-SF Warehouse

TRACY, CA-A fully leased 300,000-sf distribution warehouse here has been acquired for slightly more than $7.7 million, a company source tells GlobeSt.com. The 35-acre property is leased by Owens-Brockway Glass Container Inc., which makes glass bottles for Napa Valley wine makers and other beverage companies at a 500,000-sf plant next door to the warehouse.The new owner of the 23-acre property is TIC Properties, LLC of Greenville, SC. The distribution center is the company’s first purchase in the Western US. “This property was an attractive opportunity,” says Paul Aiesi, chief investment officer for TIC Properties. “Tracy is a central hub for distributions throughout Northern California and the Pacific Northwest, with immediate access to the main north/south and east/west interstate corridors; and with approximately nine million sf of industrial and distribution space and roughly 3.4% market vacancy, Owens-Brockway is very well represented in this market with 8.9% of space.”The distribution facility was built in 1988 for Owens-Brockway. The steel frame concrete tilt-up facility has 30-foot clear height with 10 dock high doors located on opposite ends of the building. Owens-Brockway leased the facility with renewal options, and while it has not committed to exercising those options, Aiesi says the company has recently made a significant investment in its adjacent manufacturing plant, overhauling the three on-site blast furnaces. “We feel this type of capital contribution to the operations shows the continued commitment of Owens-Brockway and the parent Owens-Illinois to the Tracy operations and distribution,” he says. Owens-Illinois is the world’s largest producer of glass containers and a leading manufacturer of packaging products. TIC Properties chief executive John Boyd says his company will continue to look for stabilized assets in the metro market. “The economic development committee in Tracy has worked hard to take full advantage to their proximity in this part of the I-5 corridor to set them up as a major distribution hub,” he says. “This area is about an hour from San Francisco, Sacramento and Napa Valley…[and] less than a day’s drive from 12 other states.”Darren Sides, a broker with the Stan Johnson Co. in Tulsa, OK, brought the deal to Aiesi. Sides has represented sellers on five other deals acquired by TIC Properties. Matt Good with Professional Mortgage Co. Inc. secured the financing through Bank One.