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SAN LEANDRO, CA-Broadreach Capital Partners has acquired a two-building 464,727-sf manufacturing and warehouse complex here that was originally developed and operated as one of Kellogg Co.'s production facilities. The Palo Alto-based investor paid $21.5 million for the mostly vacant 22-acre development and an adjacent 3.9-acre land parcel with industrial zoning.
Sold by a private investor from San Francisco, the former Kellogg complex is located on the west side of Hwy. I-880, just north of Marina Boulevard on Williams Street in the San Leandro industrial district. It consists of a 186,000-sf manufacturing and warehouse building and a 278,727-sf warehouse and office property.
Broadreach manages over $1 billion of equity through its series of discretionary real estate funds. Broadreach senior director Trevor Wilson, who heads the real estate private equity firm's investment activity in the San Francisco and East Bay markets, says the property provides "fantastic" access to both the Port of Oakland and Oakland International Airport. Significant upgrades are planned over the next 12 months.
"Both the project's San Leandro location, arguably one of the strongest industrial submarkets in the Bay Area, and its unique facilities make us well positioned to capture the demand of food manufacturing, general manufacturing and warehouse users alike," Wilson says.
City of San Leandro Business Development Manager Luke Sims calls the former Kellogg facility one of the most prominent and visible industrial properties and says its reuse "likely will act as a catalyst for other industrial redevelopment in and around San Leandro."
Michael Karp of NAIBT Commercial represented Broadreach in the transaction and, with partner Jeff Starkovich, has the ongoing leasing assignment. Colliers Parrish will provide management services.
"The San Leandro market will continue to strengthen as Port of Oakland and Oakland Army Base redevelopment occurs," Karp says. "Vacancies in manufacturing and warehouse are already in the 2.4% and 3.4% range, respectively. Rents are spiking throughout the East Bay corridor as demand increases and supply diminishes."
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