Half-filled warehouses in redeveloping Bayview sell for $15M

New owner looks to “stabilize” the asset with more tenants, agent says

1430 Yosemite Avenue and Colliers' Mike Davis (Colliers)
1430 Yosemite Avenue and Colliers' Mike Davis (Colliers)

A 10-warehouse parcel with more than 50,000 square feet in the redeveloping Bayview district has sold for more than $15 million, or $300 a square foot. It represents the biggest industrial deal in the southeastern San Francisco neighborhood since Goodman North America bought a 3.5-acre shuttered bus depot for $70 million in June.

The seller of 1430 Yosemite Avenue is New California Land Company, an LLC affiliated with DelCurto Properties, which largely owns multifamily properties in the city, according to public records. The DelCurto family has owned the Yosemite site since at least the mid-1990s, public records show. Listing agent Mike Davis of Colliers said via email that the owner was looking to divest and put capital elsewhere.

Will Cliff of Colliers

Will Cliff of Colliers

Davis and co-listing agent Will Cliff emphasized the active redevelopment of Bayview in their marketing materials, pointing out eight major redevelopment sites within 3 miles of the property. They include FivePoint’s stalled Candlestick Point and Hunters Point Shipyard projects. The 1960s-era warehouses could be redeveloped to three times the current square footage, creating a 150,000-square-foot-plus property in San Francisco’s “industrial backbone,” according to the marketing packet.

Yet the buyers, Nshe CA Dali LLC of South San Francisco and Hugo Investments LLC of Milpitas, according to public records, seem more interested in filling the half-vacant property, not expanding it.

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“The buyer plans to stabilize the asset and lease up the vacant units,” Davis said.

When the property came to market with no asking price in late winter, there were six industrial tenants leasing just over half the available square footage with rents around 60 cents per square foot for their 2,500-square-foot and 5,000-square-foot warehouses. It was “aggressively marketed” throughout the early spring and received multiple offers on a set bid date, according to Cliff. By the time it closed on Aug. 5, there were five tenants remaining, each on a month-to-month basis, he added.

Average rents have gone up 8.1 percent in the Bayview in the last year, according to Colliers data, and now command roughly $1.70 per month. The vacancy rate is 6.8 percent. Of the 7.3 million square feet of industrial space, about three-quarters is operating as logistics space. Blackstone subsidiary Link Logistics bought a 95,000-square-foot Bayview space for $27 million last summer.

Though the buyers of 1430 Yosemite are local investors, there are several other institutional owners in the area in various stages of redevelopment, including global warehouse developer Prologis, which owns several parcels a few blocks away. One has been approved to become a new fire department training facility for the city and last year the company introduced plans to merge three others and create a two-floor warehouse with nearly 300,000 square feet zoned for production, distribution and repair, as well as parking for more than 140 vehicles.

Prologis is working through the years-long approval process on its San Francisco Gateway project, also in the Bayview though farther north closer to the 280 onramp. The project has more than 2 million square feet on three floors with ceilings high enough to accommodate trucks on every level and more than 1,000 parking spaces. It is currently undergoing environmental review.

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