A Wrecking Ball is in Berkeley Farms Milk Plant's Future
The facility on 20.23 acres located at 25500 Clawiter Rd. was recently acquired by Dermody Properties, which will demolish and redevelop/rebrand the new facility as LogistiCenterSM at Highway 92.
HAYWARD, CA—Previously owned by the Dean Foods Estate, the former Berkeley Farms milk processing facility is located on 20.23 acres at 25500 Clawiter Rd. It was recently acquired by Dermody Properties, which will demolish the existing facility and redevelop/rebrand the new structure as LogistiCenterSM at Highway 92.
Demolition work will begin next month with final delivery expected in the second quarter of 2022. LogistiCenterSM at Highway 92 will consist of two class-A logistics buildings totaling 382,290 square feet. Each building will be able to accommodate between one and three customers.
“The Hayward submarket has become one of the largest warehousing and distribution centers in the Bay Area and is the second-largest industrial market along the I-880 corridor,” said George Condon, West Region partner at Dermody Properties. “The property offers immediate access to Highway 92, Interstate 880, the Peninsula and the Port of Oakland. Its central location allows companies to reach the largest number of customers in the shortest possible time.”
Once the redevelopment is complete, each of the two buildings at LogistiCenterSM at Highway 92 will offer a 36-foot clear height, 7-inch concrete slab, 130-foot truck court and will be equipped with an ESFR fire protection system, making it ideal for e-commerce.
“New-construction state-of-the-art distribution space is highly sought-after as infill development in the Bay Area,” said Shelagh Danna, vice president at Dermody Properties. “Particularly as e-commerce continues to trend upwards, LogistiCenterSM at Highway 92 will help to meet the ongoing demand as it’s ideally positioned to serve the greater Bay Area.”
As of mid-year, JLL was tracking approximately 11.9 million square feet of e-commerce demand or slightly more than 50% of total market demand in Northern California. That represents a 13.3% increase in terms of square footage demand from the region’s pre-COVID baseline.
“Hayward and the surrounding East Bay is a very land-constrained market and the redevelopment will create more functional structures, appealing to the region’s burgeoning e-commerce and tech industries,” Condon tells GlobeSt.com.
Jason Ovadia of JLL represented Dermody Properties in the transaction. Listing brokers on the project will be Ovadia, Greg Matter and Mike Murray of JLL.
Nationally, JLL expects e-commerce sales to reach $1.5 trillion by 2025, increasing the expected demand for industrial real estate to an additional 1 billion square feet.