Hines, Oaktree to Build Advanced Manufacturing Campus in Fremont
JV lands construction loan to build 267K SF manufacturing, logistics facility.
Hines and Oaktree Capital Management have secured a construction loan to build a manufacturing and logistics facility on a property in Fremont that Hines purchased in 2021.
The partners are planning a 267K SF campus at 49000-49090 Milmont Drive. Three tech buildings dating back to the 1980s will be demolished to make room for the industrial campus, according to a report in the San Francisco Business Times.
CBRE arranged the loan and will handle leasing for the new Class A advanced manufacturing and distribution center, which will be known as Milmont Industrial.
Hines bought the property, then known as Dixon Landing Research Park in 2021 for $47M. Construction on the new facility is expected to begin early next year.
According to the report, Hines is anticipating high tenant demand for the project, due to its size and the lack of developable land in the area north of San Jose. The Milmont Drive location for the project is an infill site that is in proximity to a Tesla Motors vehicle factory.
The new Milmont Industrial center will join the Warm Springs District, a concentration of advanced manufacturing companies in a variety of growth sectors, including electric vehicles, clean technology and life sciences.
Fremont, Alameda County’s second-largest city behind only Oakland, is developing a reputation as an advanced manufacturing hub anchored by Tesla’s assembly plant.
A bevy of projects have been announced in the area in recent months, including plans by Herman Christensen & Sons to develop at 450K SF office and R&D campus on a vacant 14-acre site in Ardenwood.
Valley Oak Partners, a San Jose developer is planning a 490K SF data center on a 12.5-acre site at 37887 Shinn Street. The developer acquired the site as part of a larger 24-acre acquisition of three parcels for $20M in 2021.
At 39150 Argonaut Way, Kimco is planning to demolish a 70K SF retail building in the northeast corner of the Fremont Hub, an existing open-air mall owned by Kimco.
According to the plans, submitted in June, Kimco intends to construct 314 apartments, 27K SF of additional retail space and a parking garage with a capacity of 442 vehicles.
NYC-based Kimco also is planning to demolish a 27K SF commercial building located at 39160 Paseo Padre Parkway in Fremont to make way for a 206-unit multifamily campus and a parking garage as part of the redevelopment of the Gateway Plaza shopping center.