San Francisco-based Ark Row Industrial Partners has scooped up a piece of industrial real estate in San Leandro with the purchase of a two-building property.
The deal marks a continuation of Ark Row’s acquisition spree in the East Bay.
The two buildings are located at 2701-2831 Merced Street and serve as a warehouse and distribution center with a total of 135,150 square feet. They are leased to multiple tenants and sit on 6.34 acres.
The seller is Milliontaylor Properties, which purchased the buildings in 1993 for $3 million, according to public records. The closing price for the Ark Row deal is currently undisclosed.
This is Ark Row’s fifth acquisition of an Industrial property in the East Bay this year. Three weeks ago it acquired the Alvarado Industrial Center in San Leandro. The company also acquired three properties in Hayward and a 60,000 square foot foot warehouse in Union City.
The East Bay industrial market has stayed hot as firms are eager to buy limited space. Blackstone subsidiary Link Logistics recently secured 1 million square feet of industrial property in the Bay Area, with a majority located in the East Bay. Terrano Realty also picked up a five-building portfolio in San Leandro near the Oakland airport for $35 million.
The industrial sector in the East Bay experienced near-record gains last quarter, according to a report by CBRE. There is currently 2.7 million square feet of industrial space under construction with asking leases averaging $1.31 per square foot, which is up 19 percent from last quarter. The market currently has 5.6 million square feet available that is up for sale and 817,106 square feet open for sublease, according to the report.
The limited supply of space is resulting in high lease rates, and quick acquisitions when facilities do come on the market. Currently there are 52 active companies touring and negotiating leases for a total of 6.4 square feet of available space, according to the report.
“The current level of activity should translate to continued positive net absorption through the balance of the year due to limited new space deliveries that are scheduled at this time,” the report said.
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