CIP Real Estate Buys Industrial Park in Fremont for $104M

CIP Real Estate has picked up a 352,300-square-foot light industrial park in Fremont for $103.5 million.

The Irvine-based investor bought the Clipper Court Commerce Center at 4005-4124 Clipper Court and 46704 and 46720 Fremont Boulevard, the Silicon Valley Business Journal reported. The seller was Canyon Partners, based in Los Angeles.

The deal works out to $295 per square foot.

The industrial campus, built in 1988, has 14 buildings between Coyote Creek and Interstate 880, near Baylands. Units range from 1,250 to 10,000 square feet, according to Loopnet, with an asking lease rate of $2.25 per square foot.

Tenants include such tech and advanced manufacturing firms as BASF, Kaeser Compressors and CTEMS.

Brokers Steven Golubchik and Edmund Najera of Newmark represented the seller. “It’s a great area,” Golubchik said of the commerce center. “It serves multiple uses and has always had high occupancy.”

Carmaker Tesla has multiple plants nearby.

CIP Real Estate has bought and sold properties in the area for several years. It bought two business parks in Hayward, before selling one in 2021. The 195,000-square-foot Eden Landing Business Park traded for $46 million, or $236 per square foot.

Last year, CIP sold the 148,100 square-foot Fremont Business Center to Hines for $54.6 million, or $368 per square foot.

The industrial/warehouse market in Silicon Valley has been strong, according to Colliers. Fremont has more than 50 million square feet of industrial buildings and the largest concentration of advanced manufacturing firms in the U.S.

Gross absorption, a measure of the total volume of non-renewal leases and user-sales, rose 81 percent to 945,000 square feet in the second quarter, compared to the first three months of the year.

Asking rents averaged $1.45 per square foot and were up 6.6 percent for the quarter and up 9 percent year-over-year. While the current market is strong, barriers to entry in development could harm the market moving forward.

“Extended entitlement time frames, high land and building costs, and supply chain issues critical for building infrastructure may delay construction, and constricting future supply,” the July Colliers report said.

— Dana Bartholomew