“Fremont has become the manufacturing hub of the Bay Area. Companies there are manufacturing products for both the tech and biotech industries. Most of these companies are tied in some way to the Silicon Valley. From an investment perspective, we like manufacturers and we like markets with low vacancy rates,” Condon tells GlobeSt.com. “In the next few years, we will replace a couple of roofs and a few HVAC units. Otherwise, the buildings are in great shape.”

Steve Kapp and Chris Shaffer of Newmark Knight Frank, along with Adam Lasoff, Eric Fox and Steve Hermann of Cushman & Wakefield of San Francisco brought the opportunity to Dermody Properties. The Cushman & Wakefield team represented Equus in the transaction. Serving as counsel to Equus was the firm of Goodwin Procter LLP, which was led by transactional attorneys Bryan Reid and Jennifer Sung.

“The acquisition of Fremont Research Center is consistent with our strategy of acquiring value-add, functional, in-fill logistics and light manufacturing assets in tier 1 markets. The barriers to entry in the Silicon Valley submarket are very high and submarket occupancies are at or near record levels. We believe these market fundamentals will drive growth in asset value,” said Douglas A. Kiersey Jr., president of Dermody Properties.

The buildings are located at 47513, 47600 and 47621/47633 Westinghouse Dr. and 255 Fourier Ave. There is currently a vacancy of 25,088 square feet in 47633 Westinghouse Dr. This suite contains office, light manufacturing and warehouse space. There is ample parking and an outside storage area.

“During our hold, we were able to increase rental rates nearly 50% on expiring leases by working closely with tenants and making strategic investments in the property. With the continued tenant/user activity in the market combined with the new BART station and development of large mixed-use amenities on much of the available land, we anticipate continued upward pressure on rents and values over the next few years. These factors continue to drive investor demand. This combined with our desire to exit the investment due to the fund's life cycle, played into our timing to sell,” comments Christopher Locatell, senior vice president and director of dispositions for Equus, who, along with Mark Ledger, senior managing director, Robert Butchenhart, vice president and manager for Equus' West Coast office in Los Angeles, and Samuel Schifman, financial analyst, oversaw the transaction for the firm.

Fremont Center is situated on 12.8 acres between Interstates 680 and 880, providing direct access for employees living in the East Bay and South Bay. The new Warm Springs BART station has significantly reduced commute times for employees coming from San Francisco and Oakland, and will continue to add value to the immediate area as the rail line extends south. Adding to the desirability of this location, the property is adjacent to one of the city's top residential areas with high-performing public schools, making it especially attractive for local entrepreneurs who live nearby.

Recent expansions into the city include Facebook, Apple, TE Connectivity and Seagate, along with organic growth from companies already based in Fremont including Tesla, Boehringer Ingelheim, Lam Research, Quanta Computer and ThermoFisher Scientific.