Breakwater is located at Breakwater Court and Clawiter Road, putting it next to Highway 92 and near Interstate 880, three international airports and two ports (Oakland and Richmond). "This is perhaps the most well-located warehouse in the East Bay," says Brady Thomas, who handled both side of the deal along with Lagomarsino. Indeed, Chris Watson of Watson Setzer says his company acquired the asset because of its central location and "excellent" ingress and egress from Highway 92.

The building was built in 1974 by Weyerhaeuser as the company's regional distribution and customer service center. Sitting on a 7.6-acre parcel, the built area can be expanded to 80,000 sf, Colliers' Greig Lagomariso tells GlobeSt.com.

Industry experts tell GlobeSt.com that companies looking to maintain high-teens IRRs for their investors are attracted to deals that include not only existing income-producing assets but also a development component, which tends to bring higher returns than existing assets and therefore raises the overall investment return.