Scannell Sells New Prime Industrial Property in Northern California to Bay Area-Based Commercial Real Estate Investment Firm
June 18, 2020
Scannell Properties developed the new industrial property in Eastgate Business Park in Northern California.The building was recently purchased by Walnut Creek-based Nearon Enterprises.
Strategically located 50 miles from the Port of Oakland, a brand new 155,000 square-foot property developed by Scannell Properties has sold to Nearon Enterprises.
Located in the Eastgate Business Park, the property sits on a 11.9-acre lot and includes 18,000 square feet of cold storage space. Nearon says the building will be leased through 2030 to Blue Line Foodservice Distribution, a national food distributor and restaurant supplier.
This location provides immediate access to many of the critical transportation corridors of the Western U.S. and San Francisco Bay Area, including I-205, I-5, I-580 and SR 120.
Darla Longo, Barbara Perrier, Rebecca Perlmutter, Tom Davis and Dan Davis of CBRE and Jim Martin of Lee & Associates represented Scannell in the sale. “This was a strategic purchase, given the limited supply of buildings in this size range coupled with the attractive Blue Line lease that included desirable temperature-controlled space in Tracy, a strategic Central Valley location,” said Perlmutter. Longo added, “This building provided the buyer with the rare opportunity to purchase a brand-new industrial building with a significant amount of temperature-controlled space.”
Todd Berryhill, Managing Director for Scannell Properties said, “This building demonstrates two of Scannell’s primary business lines, working with national tenants on multiple build to suit projects and speculative industrial development in core markets. The Blue Line space was designed and built exactly to their highly technical specifications and will allow them to better serve the entire trade area of Northern California.
CBRE predicts that e-commerce grocery will become more widely adopted, driving heightened demand for cold storage capacity. While until recently the ordering of perishables online was limited, consumer behavior is likely to change in a post-COVID-19 environment, according to CBRE research.
In addition to this new building sale in Eastgate Business Park, Scannell Properties has developed several build to suit and speculative projects in Northern California over the years, including in Spreckels Business Park, Airport Business Park, Marathon Business Center, and for many clients including – but not limited to - Kendall Jackson, Constellation Brands, Vasco and Roadrunner.
Public refrigerated warehouse companies and online grocers have seen a surge in demand as consumers shelter in place, according to a CBRE research report. This has resulted in a corresponding uptick in short-term requirements for freezer and cooler space—anywhere from three months to one year.