Angelo Gordon Sells Fremont Industrial Property

Another Fremont industrial property has sold in what has been an active month for the East Bay city’s manufacturing real estate sector.

Morgan Stanley Investment Management bought a two-building, 290,000-square-foot manufacturing property at 44100 and 44200 Osgood Road in Fremont for $110.3 million, the Silicon Valley Business Journal reported.

The seller was New York-based real estate investor Angelo Gordon, which bought the buildings from data storage company Western Digital Corporation in 2019 for $117.1 million. Western Digital has a long-term lease in both buildings, though details around the lease terms and whether it plans to relocate in the future were not disclosed.

Morgan Stanley Investment Management bought the Osgood Road site using funds managed by Morgan Stanley Real Estate Investing. Morgan Stanley Investment Management was attracted to the facility’s high-power capacity compared with other properties in the market as it continues “investing in high-quality research and development assets in core innovation corridors, where demand is driven by superior infrastructure and access to top talent, and where supply remains constrained,” Will Milam, head of U.S. investments at Morgan Stanley Real Estate Investing, said in a statement.

Other Fremont industrial properties came under new ownership this month.

Last week, Prologis sold a 26-acre industrial redevelopment site at 41777 Boyce Road for $70.1 million, the Mercury News reported. The buyer was a group affiliated with a Chicago-based real estate firm operating as CDECRE LLC. In June, Prologis acquired a 177,000-square-foot commercial and industrial building at 5555 Auto Mall Parkway in Fremont from LBA Realty for $59 million. In August 2023, Prologis bought a 246,000-square-foot industrial and research building at 48350 Fremont Boulevard from Blackstone for $86.6 million.

Earlier this month, Tishman Speyer bought the 250,000-square-foot Christy Street Industrial Center in Fremont for more than $92.9 million. An affiliate of Blackrock sold the one-story structure at 42701 and 42735 Christy Street.

More than 40 percent of industrial demand in the Bay Area is concentrated in Fremont, per CBRE data cited by the Business Journal. The Fremont and Newark submarket recorded 3.4 percent vacancy in the fourth quarter, below the regional average of 4.6 percent.— Chris Malone Méndez