A Southern California developer is lined up to redevelop the Bay Area manufacturing plant Owens Corning will soon shutter.
The Ohio-based manufacturer has struck a deal to sell the plant property to Irvine-based Panattoni Development for $240 million, according to a regulatory filing. Panattoni aims to redevelop the site into nearly 900,000 square feet of warehouse or data center space, TRD has learned.
The property contains 747,424 square feet of industrial warehouse buildings and 130,000 square feet of covered truck loading docks and surface parking, according to city records.
Owens said it expected to take a $30 million to $40 million charge related to the deal, largely to cover severance, demolition and other costs of closing the transaction.
It also expected to recognize $75 million to $85 million in non-cash charges related to depreciation of the facility, plant and equipment.
Publicly traded Owens Corning decided to close the plant as part of a shift in manufacturing to less costly regions closer to its customers, it announced last year.
Owens Corning manufactures insulation at 42 plants in 18 cities worldwide, including Santa Clara, according to its annual report. The company is now investing in plants in Utah and Arizona.
Owens said then it expected to shutter its Santa Clara facility in the second half of this year and to complete the sale to Panattoni in the first quarter of next year.
Early this year, Panattoni filed plans to demolish the existing plant structures to construct three Class A speculative buildings totaling up to 890,000 square feet, according to an application with the city. The buildings could be used for warehousing and/or data centers.
– Dana Bartholomew
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