Bridge Industrial Lands $117M for Bay Area Industrial Park
Bridge Industrial has secured a $117 million construction loan for a four-building, 714,491-square-foot industrial park in San Jose, Calif., according to Santa Clara County records. Bank OZK issued the funds with First American Title Insurance Co. as trustee. The developer expects completion in 2025’s fourth quarter.
Bridge acquired the 32.8-acre site for $134 million in 2021, leveraging an $81.2 million acquisition loan from Invesco. Plans at the time called for the demolition the existing campus and the construction of a new four-building industrial park in its stead.
READ ALSO: CRE Sentiment Index Hits All-Time High
Bridge Point San Jose’s four buildings are planned to measure 358,180, 202,735, 83,751 and 69,825 square feet. The two larger facilities will have 36-foot clear heights while smaller ones will cap at 32 feet. The park will have a combined total of 77 dock-high doors—with roughly half featuring mechanical pit-levelers—and six ground-level doors. Truck courts are slated to measure a depth ranging from 185 to 135 feet. Parking will consist of 344 car and 99 trailer spaces.
The development is at 2150 Commerce Drive, less than 3 miles from the San Jose Mineta International Airport, as well as roughly 33 and 35 miles southeast of the Oakland and San Francisco international airports, respectively. The Port of San Francisco is about 48 miles northwest.
Bridge Industrial targeting infill assets
Bridge is continuing its strategy of targeting infill industrial assets in supply-constrained core markets ripe for redevelopment or capital improvements.
In July, the company kicked off the office-to-industrial redevelopment of Ryder System Inc.’s former headquarters, a 248,989-square-foot office building in Medley, Fla. The developer plans to raise a 326,448-square-foot speculative industrial campus in its place. Ryder sold its former head office to Bridge for $42.1 million in March 2023.
Bridge is not the only developer looking to reshape office spaces. Earlier this month, Lincoln Property Co. began to put plans into motion for redeveloping a 218,268-square-foot office building into a 254,000-square-foot industrial project in Tempe, Ariz., by purchasing the 16.3 acres site upon which the office asset rises for $18.3 million.
Bay Area industrial assets priciest nationwide
The Bay Area’s industrial investment volume reached $2.7 billion year-to-date through September, securing the second spot nationwide—behind Dallas-Fort Worth—according to a recent CommercialEdge report. The market took the lead nationwide in terms of prices, with assets trading at an average of $476 per square foot through September, more than triple the $130 national figure.
The overall vacancy rate in the Bay Area stood at 7.5 percent at the end of the third quarter, 50 basis above the national average. The supply constrained market’s pipeline still contained 3.5 million square feet under construction as of September, although this was significantly behind other Western regions, such as Phoenix (33.8 million), the Inland Empire (10.2 million) and Denver (7.6 million), the same source shows.
In July, Hines secured $120.3 million for the construction of a 636,000-square-foot industrial project in San Jose. Edenvale Industrial Park is slated for completion in 2025.
The post Bridge Industrial Lands $117M for Bay Area Industrial Park appeared first on Commercial Property Executive.
