Panattoni will tear down the existing building and construct a brand new 173,296-square-foot, state-of-the-art industrial facility. The new facility, named the Milmont Commerce Center, will feature 30 foot clear ceilings, an Early Suppression Fast Response (ESFR) sprinkler system, 147 foot truck courts, 22 loading docks and 278 parking stalls. Panattoni, in partnership with Principal Real Estate Investors, is projecting the building to be completed in the fourth quarter of 2014.
“There are very few markets in Northern California where speculative construction for industrial buildings makes economic sense,” said Tim Schaedler, Northern California partner for Panattoni Development Company. “This area, with its high barriers of entry and strong local economy, is an exception.”
Jay D. Skelton, portfolio manager of Principal Real Estate Investors added: “We are delighted to work side-by-side with Panattoni on this important project. We believe in our timing to market the current and long-term supply/demand fundamentals of the East Bay industrial marketplace, and the attractive amenity package our building will provide to prospective clients.”
“Panattoni was attracted to the 9.26 acre land site for its strategic location along the 880 Corridor and its proximity to critical transit, centers including the Port of Oakland and San Jose International Airport,” said Jesse Lucas, principal at Lee & Associates-Oakland, who advised Panattoni on the sale. “The site was large enough for Panattoni to construct big-box industrial, while having a desired proximity to Silicon Valley. We believe this high-quality, prime location is the best possible value for Panattoni’s future development.”
Lucas, along with associates Andrew Stoddard and Victor DeBoer, both of Lee & Associates-Oakland, represented the buyer, Panattoni Development Company, as well as the seller, S&S Partnership.
Celebrating more than 34 years of leadership excellence in commercial real estate, Lee & Associates is the largest broker-owned firm in the nation, with 49 locations across the nation including Arizona, California, Georgia, Idaho, Indiana, Illinois, Kansas, Maryland, Michigan, Missouri, Nevada, New Jersey, Texas and Wisconsin. With a roster of nearly 750 expert brokers, Lee & Associates provides a wide range of specialized commercial real estate services. Additional information is available at http://www.lee-associates.com/. For more information, contact us in Oakland at (510) 903-7600.