A three-property industrial portfolio in the San Francisco Bay Area has been sold for $120M. The sellers, Link Logistics, transferred the properties to the buyers, BKM Capital Partners (BKM) and Kayne Anderson Real Estate, through a joint venture.
Property: Huntwood Business Center, Hesperian Business Park and Concord Industrial Park
Price: $120M
Seller: Link Logistics
Buyer: BKM and Kayne Anderson Real Estate
Totaling 505,000 s.f. across 16 buildings and 94 units, the three assets include Huntwood Business Center and Hesperian Business Park, both in Hayward, Calif., and Concord Industrial Park — to be renamed Mount Diablo Industrial Park — in Concord, Calif.
The properties sit on 34 acres of infill land with access to regional transportation, major population centers and a skilled labor pool.
The portfolio is 89% leased to a roster of over 70 tenants with no single industry comprising more than 20% of the rent roll. Unit sizes average 5,300 s.f.
Built between 1980 and 1988, the portfolio presents a significant near-term income growth opportunity, with approximately 28% of in-place rents below market and a weighted average lease term (WALT) of two years. Lease rollovers are staggered, offering stable near-term cash flow alongside the ability to reconstitute the rent roll at higher market rates.
“Functional, well-located light industrial product of this scale rarely trades in the Bay Area, so this was a rare opportunity to secure critical mass in two of the most supply-constrained industrial submarkets on the West Coast,” said Brett Turner, senior managing director of acquisitions and dispositions at BKM. “The portfolio offers a compelling combination of functionality, tenant diversity and mark-to-market upside in a region where scale is incredibly difficult to achieve. It’s exactly the kind of opportunity we’re purpose-built to execute on.”
