Industrial property

Blackstone unit brings 1 million square feet of Bay Area industrial property to market

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

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

The portfolio represents 8% of the industrial space currently available in the Bay Area.

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

LinkLogistics did not publicly disclose but cited a value of about $190 million, or $202 per square foot, in a statement from CBRE, which has the listing.
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Property locations 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 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.

Recent data from CBRE noted that about 4.2% of the 311 million square feet of industrial space in the Bay Area is currently available, or about 13 million square feet. The East Bay has the most industrial space at 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 tight 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 East Bay at $1.11.

“The demand pipeline remains healthy and continues to be supported 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 buildings were fully let to 37 tenants with an average residual lease term of less than three years.

Link Logistics’ decision to put Bay Area properties on the block is the continuation of a real estate shakeup by the company, which has also put 2.7 million square feet of industrial property up for sale on other west coast markets. In the first quarter, Link sold properties totaling 7.6 million square feet of properties in the United States for $1.1 billion and purchased 5.6 million square feet for $598.8 million.