North Palisade Enters Bay Area Market with Fremont Industrial Acquisition North Palisade Partners, an industrial investment and development firm, announced it acquired Palisade Whitney Logistics Yard, a 2.24-acre industrial outdoor storage / multiuse yard in Fremont, CA for roughly $8 million. The deal marks North Palisade’s entry into the Bay Area market as it continues to expand its footprint across key Western U.S. supply chain and logistics markets.
Located at 300 Whitney Place, the industrial infill site within Warm Springs Business Park features an existing paved lot that is currently leased to an autonomous vehicle company and used as a test track. Once the lease expires, the site could be developed with a Class A industrial facility of up to 42,000 square feet to meet robust demand for well-located infill warehouse space.
North Palisade Partners’ John Petersen, Partner of the Los Angeles, CA-based firm, said, “This is North Palisade’s first industrial asset acquisition in Northern California. This is a well-located and established parcel that was attractive to us because as a seasoned industrial developer we recognize it gives us the flexibility to position the property for yard or trailer storage with the ability to build a 42,000-square-foot Class A Industrial building.”
The property is ideally situated between the 680 and 880 freeways near the Tesla factory, making it an ideal location for logistics and supply chain industrial operators serving the entire Bay Area region. The convenient location allows for easy access to Oakland International Airport, the Port of Oakland, San Jose International Airport, and communities in the South Bay and the Silicon Valley such as Milpitas and San Jose.
Colliers International’s Ed Hofer, Executive Vice President, and Colliers’ Emerson Hofer, Vice President, represented North Palisade Partners in the transaction. Colliers’ Hofer notes, “The East Bay industrial markets in the Oakland I-80 and I-880 Corridor continue to experience soaring demand from e-commerce and third-party logistics firms. Since this is one of only a few infill sites in Fremont available for development, we expect North Palisade will be well positioned to realize value should they elect to build a facility on the site.”
Demand has placed downward pressure on vacancy rates and upward pressure on lease rates. Industrial vacancy rates in the East Bay dropped to 2.6% in Q1 2002, near the market’s historical low, reports Colliers. The East Bay market is also anticipated to have a 5-year rent growth rate of 28.5%.
Petersen adds, “The project also fits North Palisade’s long-term strategic objectives to assemble a portfolio of industrial assets in key logistics markets that are critical to supply chains. We are bullish on industrial because market fundamentals remain healthy, and demand is strong.”
This acquisition aligns with North Palisade Partners’ strategy to add industrial assets to its portfolio that feature well-located sites within its core markets across the West. The company’s growth plans include key logistics markets in Northern California, Southern California, Las Vegas, Reno, Seattle, Portland, and Phoenix. North Palisade has acquired four industrial and self-storage development properties in California for a total of $130 million so far this year.