A former cereal warehouse located in the Bay area of San Francisco has fetched $21.5 million. Broadreach Capital Partners, a West Coast-based real estate private equity firm, bought the 464,727 sq. ft. manufacturing and warehouse complex in San Leandro from the Kellogg Co.
The property includes a 186,000 sq. ft. manufacturing and warehouse building, a 278,727 sq. ft. warehouse and office property and a 3.9 acre industrial-zoned land parcel.
“We’re excited about the opportunity to acquire well located industrial product with fantastic access and proximity to both the Port of Oakland and Oakland International Airport,” says Trevor Wilson, a senior director at Broadreach Capital Partners.
“Both the project’s San Leandro location, arguably one of the strongest industrial submarkets in the Bay Area, and its unique facilities make us well positioned to capture the demand of food manufacturing, general manufacturing and warehouse users alike,” adds Wilson.
Broadreach plans to redevelop and renovate many of the properties on the site. Luke Sims, business development manager for the City of San Leandro, believes that the Kellogg property redevelopment will enhance the city’s industrial base and spark a surge in industrial-based jobs.
Industrial vacancy in the San Leandro market is roughly 3%, according to NAIBT Commercial. Broker Michael Karp of NAIBT says that demand increases have not been met with greater supply in recent months. As a result, he believes that the San Leandro market will continue to improve over the next few months.
Broadreach Capital was founded in 2002 by the former executive team of Spieker Properties. The public REIT was sold to Sam Zell’s Equity Office Properties Trust in late 2000 for $7.3 billion. The deal made Zell a major player in the West Coast office market at a time when the dot-com bubble was set to burst.