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Penske truck rental acquires former homeless camp for $70M

San Leandro industrial property burned down in 2019

Roger Penske and 635 Marina Boulevard in San Leandro (Getty, LoopNet)
Roger Penske and 635 Marina Boulevard in San Leandro (Getty, LoopNet)

Penske truck rental has acquired the site of a homeless encampment in San Leandro that burned in 2019. The auto company paid $70 million to Zelig, a limited liability, according to public records.

Penske did not respond to multiple inquiries by TRD about plans for the site.

The 2.4 acres of land is zoned for industrial use at 635 Marina Boulevard. Between 1958 and 2019 the land housed a 12,000-square-foot, two-story building which most recently was operated by Dan Martinelli Poultry. When the fire occurred in June 2019, the building was abandoned and became a homeless encampment. The property is currently vacant.

San Leandro’s industrial market has remained strong this year, with investors and companies looking to secure space before their competitors. Amazon.com subleased two industrial buildings totaling 137,000 square feet from a robotics startup company. Terreno Realty paid $35 million for a 104,000-square-foot logistics warehouse near the Oakland airport. Prologis plans to develop a 250,000-square-foot industrial building in San Leandro’s General District, near the airport as well.

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The industrial sector in the East Bay experienced near-record gains in the second quarter, according to a report by CBRE. There is currently 2.7 million square feet of industrial space under construction with asking leases averaging $1.31 per square foot, which is up 19 percent from the previous quarter. Vacancy dropped to 2.3 percent, as tenants absorbed 1.2 million square feet of space in the quarter, according to the report.

The limited supply of space results in pre-leasing deals and quick acquisitions when facilities come on the market. Currently there are 52 active companies touring and negotiating leases, according to the report.

“The current level of activity should translate to continued positive net absorption through the balance of the year due to limited new space deliveries that are scheduled at this time,” the report said.

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