Newly Built LogistiCenter Trades for $103M in East Bay
PGIM in cash deal to buy 354K SF campus Rivian pre-leased, bailed out on.
Dermody Properties has sold its new LogistiCenter @92, to PGIM, the investment arm of insurance giant Prudential Financial, in an all-cash deal for $103M.
The 354K SF, two-building campus in Hayward stands on a 16-acre site near the intersection of State Route 92 and Clawiter Road at the approach to the San Mateo-Hayward Bridge.
Oakland-based Harvest Properties is working PGIM on LogistiCenter @92, focusing on attracting tenants.
Nevada-based Dermody developed two warehouses, one encompassing 232K SF and the other 121K SF, at the Hayward site. Like many large industrial campuses nearing completion in 2023, LogistiCenter @92 was pre-leased.
Rivian Automotive, the struggling EV manufacturer, signed a lease in July 2022 to occupy all of LogistiCenter @92, located at 25500 Clawiter Road on a site that was formerly occupied by a milk processing plant.
In June 2023, Rivian listed for sublease LogistiCenter @92, which was still under construction.
Early in 2023, Rivian announced a layoff of 6% of its workforce as part of a cost-cutting effort aimed at offsetting falling cash reserves. Irvine, CA-based Rivian struggled to ramp up production of its R1 trucks and EDV delivery vans for Amazon, its top shareholder, at one point losing nearly 90% of the stock value it had garnered in a 2021 IPO.
Dermody, based in Reno, bought the 16-acre site of the former Berkeley Farms milk processing plant, for $49M in 2020 for development as a warehouse and distribution facility. The site was considered a prime location in proximity to the state highway and the bridge.
Berkeley Farms, a well-known Bay Area milk producer and dairy brand, operated for several decades at the site.
Berkeley Farms was forced out of business in the wake of the bankruptcy of its owner, Dean Foods. Dean Foods said it had attempted, but failed, to find a buyer for Berkeley Farms, according to a report in The Mercury News.
Berkeley Farms originated as South Berkeley Creamery and was initially based in Berkeley. The dairy company launched a famous advertising campaign that asked the question “Farms in Berkeley?”
The question was answered by a somebody who sounded like Bugs Bunny. Mel Blanc, who was the voice for cartoon characters including Bugs Bunny, Woody Woodpecker, Daffy Duck, Porky Pig and Tweety Pie, also was the voice for the Berkeley Farms commercial.