Dealmaker: JLL Income Property Trust Acquires Industrial Portfolio for $47M
Michael Tucker firstname.lastname@example.org
JLL Income Property Trust, Chicago, acquired Fremont Distribution Center, a fully leased two-building industrial portfolio in the Oakland/East Bay area submarket Fremont, Calif., for $47 million.
The two Alameda County properties total 240,000 square feet. JLL noted the entire San Francisco Bay area and especially the East Bay and Silicon Valley industrial submarkets are experiencing record low vacancies due to high demand and barriers to new construction.
"Virtually all of this area is infill, with significant supply constraints given the population density, surrounding water, topography and population growth in the metro," JLL said, calling the market's industrial fundamentals among the strongest in the country.
The Oakland and Silicon Valley industrial submarkets currently have 1.6 percent and 1.4 percent vacancy rates, respectively. "The Bay Area industrial markets have undergone significant redevelopment that has resulted in many buildings being torn down to make way for new high-rise office buildings, residential and mixed-use projects," JLL said. "This creative destruction is expected to continue as a lack of developable land exists in the market and demand for space of all kinds remains strong."
The real estate investment trust owns three other industrial properties nearby. JLL Income Property Trust President and CEO Allan Swaringen said the firm's industrial allocation now approaches $650 million and more than 6 million square feet.