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6/11/20
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In a NoCal industrial acquisition, Nearon Enterprises purchased Eastgate Business Park, a 155k sf property in Tracy, about 20 miles southwest of Stockton. The price was not disclosed.
Located at 1447 Mariani Ct, the property sits on an 11.9-acre lot and is 37% leased through 2030 to Blue Line Foodservice Distribution, a national food distributor and restaurant supplier. Blue Line is a privately held company that has been in operation for nearly 50 years and services Little Caesars and other clients. Parent company Ilitch Holdings Inc has a portfolio of major brands including the Detroit Red Wings, Detroit Tigers and Little Caesars.
The brand-new building features ±28-ft clearance, a gated truck court, 3,000 Amps of electrical service, ample parking and dock-high/grade level loading. The property also features about 18k sf of temperature-controlled space the tenant funded.
The property is strategically located 50 miles from the Port of Oakland. The 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 the seller, Indianapolis-based real estate development and investment firm Scannell Properties.
“This building provided the buyer with the rare opportunity to purchase a brand-new industrial property with a significant amount of temperature-controlled space,” said Longo. “Industrial facilities in this size range are extremely expensive to replicate, providing less competing product.”
The Central Valley industrial market has been extremely active, with a total of 7.6 msf of net absorption in 2019 – the highest total for a single year since CBRE has tracked market data. 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.
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.
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