LIVERMORE, CALIF. — Trammell Crow Co., Multi-Employer Property Trust (MEPT), and real estate advisor Bentall Kennedy have announced that construction has begun on Oaks Logistics Center in Livermore, 38 miles southeast of Oakland. The project will consist of three Class A industrial logistics buildings totaling 1.3 million square feet. All buildings will be constructed simultaneously, and the project is scheduled for completion in the fourth quarter of 2015. The price of the development was not released.
“We are excited to be working with MEPT, Bentall Kennedy and the city on a meaningful industrial opportunity in the Bay Area,” says Will Parker, principal with Trammell Crow Co.’s Northern California business unit. “Over the past 20 years, TCC’s work with MEPT and Bentall Kennedy has grown into a successful partnership and tackled complex transactions and delivered best-in-class industrial facilities. Oaks Logistics Center is a great example of our collaboration.”
The new logistics/fulfillment center will be accessible from major transportation corridors. The three-building development is located on Highway 84 just south of Highway 580 via the Isabel Avenue/Highway 84 interchange. The site has direct access to I-580, proximity to the Port of Oakland and is positioned to serve the entire Bay Area and Northern California. The project will have 32- to 36-foot clear heights, cross-dock configurations, sprinkler systems and trailer parking. Designed to achieve LEED Silver certification, the construction of the project is estimated to create more than 420 jobs for members of the building trades and over $157 million in economic activity.
“The development of Oaks Logistics Center is consistent with MEPT’s and Bentall Kennedy’s ‘build-to-core’ strategy, and helps satisfy our goal of increasing the fund’s allocation to modern, bulk distribution assets in primary markets such as the San Francisco Bay Area,” says David Antonelli, executive vice president and MEPT portfolio manager at Bentall Kennedy. “We believe the case for developing Class A industrial product is particularly compelling in this market. Robust demand for new space, low vacancy rates, severe Bay Area land constraints and older obsolete industrial inventory attracted us to this opportunity with the Trammell Crow team.
The project is being marketed jointly by Bob Ferraro and Blake Rasmussen of CBRE, and by Michael Lloyd of Colliers International.
Trammell Crow Co., founded in 1948, is a developer and investor in commercial real estate. The company has developed or acquired nearly 2,600 buildings valued at almost $60 billion and spanning over 540 million square feet. As of Sept. 30, 2014, Trammell Crow Co. had $5.1 billion of projects in process and $2.9 billion in its pipeline.
Bentall Kennedy is a real estate investment advisor and a provider of real estate services. Bentall Kennedy serves the interests of more than 500 investors across 134 million square feet of office, retail, industrial and multifamily properties valued at over $32 billion throughout Canada and the U.S.
MEPT is a $7 billion, open-end commingled real estate equity fund that invests in a diversified portfolio of institutional-quality real estate assets in 25 major metropolitan markets across the U.S.
— Haisten Willis