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| In what might be the largest real estate transaction in Richmond history, CenterPoint Properties has purchased the new distribution center at 2995 Atlas Road. The sales price was $146,606,600, resulting in a real estate transfer tax payment directly to the City of Richmond of $4,398,210.
Even with that one-time windfall, Richmond’s future fiscal prospects are grim without major restructuring to achieve a sustainable, structurally balanced budget. Richmond is faced with looming PERS (pension) and OPEB (health plan) annual payments, not to mention $661 million in unfunded pension and OBEB liabilities, Kid’s First funding obligations, depleted reserves and union pressure for raises.
CenterPoint scoops up large East Bay distribution center
By Laura Waxmann
Staff Reporter, San Francisco Business Times
Sep 25, 2020, 1:43pm PDT
Updated Sep 25, 2020, 2:28pm PDT
CenterPoint Properties has swooped up a 707,820-square-foot distribution facility in Richmond, marking the Illinois-based company's fifth acquisition in the East Bay in the past year.
The firm declined to provide financial details on the deal with seller LDK Ventures. Cushman & Wakefield’s Norcal Capital Markets team was the broker on the deal.
The cross-dock facility, located at 2995 Atlas Road, comes with 151 dock-high doors, 15 drive-in doors and 157 trailer parking stalls and is “ideal for last-mile distribution,” CenterPoint said in a statement issued Wednesday. It is fully leased.
“The value proposition is about maintaining a bulk format in an infill environment,” said Greg Pearson, the firm’s vice president of investments. “The inventory of undeveloped land in the I-880 Corridor cannot support future competition, which should create long-term pricing power and outsized appreciation.”
Senior Vice President Ryan Dunlap said that the Richmond property is “theoretically aligned” with CenterPoint’s strategy of purchasing and developing “throughput-focused assets in the best urban settings.”
CenterPoint has been active in Northern California, where it owns 19 properties and 3.87 million square feet. The firm has two active developments in the East Bay.
In 2018, CenterPoint broke ground on the Seaport Logistics Complex, encompassing 170 acres at the Port of Oakland.
As we reportedly previously, the East Bay has a high volume of industrial leasing over the past six to nine months, with 15 under-construction buildings of more than 50,000 square feet from Richmond to Fremont. While the Covid-19 pandemic has very much chilled real estate activity, it has come as a boon to the industrial sector. |
