May 8, 2017
An Article on The Registry by Jon Peterson
DCT pays $5.435MM in San Leandro for New Industrial Development
NORTHERN CALIFORNIA – Denver-based DCT Industrial Trust has bought 3.6 acres of industrial land in San Leandro for its next industrial development in the San Francisco Bay Area. The purchase price was $5.435 million, according to public records. The land is located at 2001 Williams Drive.
DCT declined to comment on what it paid for the land. The parcel of land that DCT acquired was sold by Palo Alto-based Broadreach Capital Partners. It was fully entitled land.
“We think that San Leandro is a very attractive industrial market. It’s a very supply constrained market, so to be able to buy an entitled piece of land in an infill location makes a lot of sense for our company,” said Dave Haugen, a senior vice president for DCT. He works out of the company’s regional office in Emeryville and oversees the company’s activities in the San Francisco Bay Area.
He seen a tremendous amount of rental rate growth in the industrial market for San Leandro. “Since the market downturn, we have seen rents almost double in the market. I think one of the main reasons for this is that it’s been hard to add more product to the marketplace, which is why market vacancy is now at 2 percent or lower,” said Haugen.
DCT is calling the new development DCT Williams Corporate center. The public REIT is planning to start construction during the third quarter of this year. The 75,000 square foot project will have a seven-month development process until completion. The developer has filed building permits for the project.
The expectation is that the project will be leased to a single tenant. The leasing of the project will be done through Cushman & Wakefield. The listing agents are Jeff Starkovich, senior vice director, and Michael Karp, managing director. Both work out of the company’s Oakland office. “The size of our building is a good fit for the market as most of the tenants in San Leandro are looking for space in the range of 50,000 to 75,000 square feet,” said Haugen.
The project in San Leandro will be warehouse/distribution, manufacturing or last mile type of industrial space. The amount of the office component of the project is projected to be someone in the range of 3,500 square feet.