One of Northern California’s largest warehouses sells in Fairfield for $60M

A Phoenix-area real estate developer and investor has made a big play in San Francisco Bay Area commercial property with the purchase of a sprawling Fairfield distribution center, one of the largest in Northern California.

JDM Partners LLC purchased a 1.02 million-square-foot warehouse at 2600 Stanford Ct. from USAA Real Estate Company. That’s the equivalent of having nearly 18 NFL fields under roof. The sale price reportedly was $60.5 million, or about $59 a square foot.

“Tremendous” investor demand and a limited supply pipeline continue to make the Bay Area a sought-after industrial locale, according to real estate brokers for the seller.

“As one of only six distribution centers in Northern California totaling more than 1 million square feet, 2600 Stanford Court presented a rare opportunity for JDM Partners to break into a high barrier-to-entry market with a top-quality asset,” said Mark Detmer, part of the JLL team representing USAA. “With such heavy demand for industrial product and a very limited supply, Northern California is primed to continue its strong sales environment.”

The 56-acre property is fully leased to Luxembourg-based Ardagh Group, for a container distribution facility for wine and other industries. The building, with a 180-foot truck court and 32-foot interior ceiling clear height, was built in 2006 for Saint-Gobain Containers.

BIG SPACES IN SOLANO

Fairfield has some of the lowest warehouse and distribution space vacancy in the North Bay, despite 156,000 square feet of new space reaching completion at mid-year and another 1 million square feet under construction, according to Colliers International. The vacancy rate for such space in the city was just 2.9 percent of 9.62 million square feet in the second quarter.

Panattoni Development Co. in April started construction on the 1.04 million-square-foot Gateway80 Business Park project just east of the towering Anheuser-Busch brewery windmills along Interstate 80. It’s set for completion by year-end. JLL is marketing the project.

Another half-million square feet of warehouse projects are planned to get started in the city this year, but opportunities for more big buildings is dwindling, according to Jon Quick, a Fairfield-based Colliers agent.

RUNNING OUT OF LAND

“Vacaville has more land for future growth than Fairfield,” Quick said. “Fairfield is running out of industrial sites.”

He’s on the Solano Economic Development Corporation board and part of a county-led task force looking at the local economy over the next two decades. One finding is that Fairfield doesn’t have much land left with entitlements for construction to begin quickly on large commercial projects, Quick said.

An example of industrial development potential in Vacaville is Interchange Business Park, which has about 100 contiguous acres available. The city’s warehouse vacancy rate was 3.7 percent of 5.49 million square feet in the second quarter, according to Colliers.

And space has been coming to market nearby in Vacaville Business Park.

Sacramento-based Buzz Oates Group of Companies finished construction on a 128,758-square-foot warehouse at 2060 Cessna Dr. in Vacaville Business Park earlier this year, leasing 81,000 square feet to Wunder-Bar and 47,000 square feet to Los Angeles-based Acorn Paper Products Company, which is relocating a distribution center from American Canyon in Napa Valley.

“It was one of first [speculative commercial] buildings built in Solano County in a number of years,” Quick said. “It feels like a strong, active market. We’re starting to see new projects coming out of ground.”

Article source: http://www.northbaybusinessjournal.com/northbay/solanocounty/5843951-181/fairfield-vacaville-solano-industrial-real-estate

This entry was posted in SF Bay Area News and tagged . Bookmark the permalink.

Comments are closed.