Single-tenant industrial building in Silicon Valley sells for $14.5M
JLL Capital Markets closed the sale of the triple-net-leased property and arranged an $8.9M acquisition loan for the new owner
SAN FRANCISCO, March 23, 2021 – JLL Capital Markets announced today that it has closed the $14.5 million sale of and arranged $8.9 million in acquisition financing for a 42,816-square-foot, single-tenant, triple-net-leased industrial building in the San Francisco Bay Area community of Fremont, California.
JLL marketed the property on behalf of the seller, BKM Capital Partners. The Koll Company acquired the asset in an off-market transaction, which represents their fourth industrial acquisition in the last quarter. Additionally, working on behalf of the new owner, JLL placed the eight-year, fixed-rate loan with Sentinel Investments.
The building is situated on 2.63 acres at 48400 Fremont Blvd. in Fremont, the Bay Area’s premier Industrial submarket. JLL Research’s Silicon Valley Industrial Insight - Q4 2020 report details that the Fremont Industrial submarket had little to no new deliveries in 2020 and only 666,146 square feet under construction. Adjacent to Interstates 880 and 680, this infill location is proximate to Silicon Valley’s Fremont Innovation District, an 879-acre hub of advanced manufacturing and clean technology centered around the new Warm Springs/South Fremont BART station. Additionally, the property is surrounded by high-profile corporate and technology neighbors.
Completed in 1996 with concrete tilt-up construction, 48400 Fremont Blvd. houses creative office and warehouse/manufacturing space. The building features high-quality interiors, a 21-foot clear height, three dock doors, two grade-level doors and ample parking. Cintas Corporation (NASDAQ: CTAS), a Fortune 500 company with a credit rating, occupies the building on a long-term, triple-net-leased basis for its Fire Protection and First Aid & Safety service lines.
The JLL Capital Markets Investment Sales Advisory team representing the seller was led by Senior Managing Director and Co-Head of JLL’s Industrial Capital Markets group Mark Detmer, Senior Director Ryan Sitov and Associate Andie Fezell, along with local market support from Vice President David Sesi and Associate Ada Wong.
The JLL Capital Markets Debt Placement team representing the borrower included Managing Directors Brian Torp and Jordan Angel and Associate Taylor Gimian.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
For more news, videos and research resources on JLL, please visit our newsroom.
Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About BKM Capital Partners
BKM Capital Partners was founded in 2013 by Brian Malliet. Headquartered in Newport Beach, California, BKM Capital Partners is a real estate fund manager specializing in the acquisition and improvement of value-add light industrial multi-tenant properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with a vertically-integrated operator platform that includes in-house capabilities to reposition and convert existing assets, enhance property management, incorporate leasing management and institutionalize light industrial properties characterized by fragmented ownership positions. The firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. Additional information is available at bkmcapitalpartners.com.
About The Koll Company
The Koll Company is a well-capitalized full-service real estate operating company headquartered in Irvine, California. Koll's track record includes the development and acquisition of over 150 million square feet of office, industrial, retail, resort, and golf course properties over the past six decades.