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Blackstone unit puts 1 million sf of Bay Area industrial space on market

Portfolio of eight buildings represents 7 percent of available industrial space in region

Link Logistics ceo Luke J. Petherbridge and 3919 Oregon Street, Benicia (Google Maps, LinkedIn)
Link Logistics ceo Luke J. Petherbridge and 3919 Oregon Street, Benicia (Google Maps, LinkedIn)

Blackstone subsidiary Link Logistics Real Estate has put eight fully leased warehouses that combine for nearly 1 million square feet in the Bay Area up for sale.

The portfolio accounts for 8 percent of the currently available industrial space in the Bay Area.

The eight buildings total 943,000 square feet and have 13 tenants, with average remaining lease terms of 3.6 years.

LinkLogistics did not publicly disclose but cited a value of approximately $190 million, or $202 per square-foot, in a release from CBRE, which has the listing.
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The locations of the properties are spread throughout the Bay Area, including four in the North Bay: 363-437 Industrial Way, 20269-20281 Mack Street, and 3919 Oregon Street in Benicia; and 5160 Fulton Drive in Fairfield.

Three in the East Bay: 31055-31033 Huntwood Avenue and 30803 San Clemente Street in Hayward; and 550 85th Avenue in Oakland

And one in Silicon Valley: 6212 Hellyer Avenue in San Jose.

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Recent data from CBRE indicates that about 4.2 percent of the 311 million square feet of industrial space in the Bay Area is currently available––roughly 13 million square feet. The East Bay has the most industrial space 167 million square feet, followed by Silicon Valley with 108 million and the Peninsula with 35 million.

The Bay area added 3 million square feet of industrial space amid increased demand and limited supply in the first quarter, according to the report. The average asking rent is $1.40 per square foot, with San Francisco highest at $1.70, followed by San Jose at $1.41, and the East Bay at $1.11.

“The demand pipeline remains healthy and continues to be buoyed by a mix of traditional warehousing and manufacturing requirements as well as increased demand from the e-commerce sector,” the report said.

Last month a Mississippi based-real estate trust, EastGroup Properties, acquired 1.7 million square feet of industrial property in San Francisco from investor Brian Tulloch in a deal valued at $415 million. The properties were fully leased to 37 tenants with an average remaining lease term of less than three years.

Link Logistics’ move to put the Bay Area properties on the block is a continuation of a shuffling real estate by the firm, which also put 2.7 million square feet of industrial property for sale in other West Coast markets. In the first quarter, Link sold properties totaling 7.6 million square feet of properties around the U.S. for $1.1 billion and bought 5.6 million square feet for $598.8 million

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