CBRE Arranged Sale of Low-Coverage Cross-Dock Warehouse in Hayward

CBRE brokered the sale of a 21,420 sq. ft. cross-dock warehouse on 5.31 acres in Hayward, Calif. from an undisclosed seller to Prologis.

CBRE’s Chris van Keulen, Bob Ferraro and Michael Barry represented both the buyer and the seller.

“Low-coverage opportunities of this size, quality and overall functionality rarely become available.” said Mr. van Keulen, Senior Vice President at CBRE. “In addition to being a unicorn property in the East Bay, the seller meticulously took care of it over the course of their ownership which resulted in a competitive process with attractive pricing amid the current economic environment.”

Located at 651 Sandoval Way in Hayward, the property has a remodeled office building, truck service maintenance building, significant employee parking and container parking stalls. The cross-dock warehouse has 50 dock positions and concrete truck wells. RPM Transportation is the sole tenant of the property.

“Institutional investors were sidelined for the second half of last year but continue to invest selectively in well-located assets. Since interest rates started increasing last year, this was the first significant disposition process in the market that attracted a lot of institutional buyers as well as owner-users of its respectable size and value,” added Mr. Barry, Executive Vice President at CBRE.

The Oakland industrial market remained tight in the first quarter of 2022. Vacancy was 2.1% in Q1 2023, down from 2.6% at the end of 2022, according to CBRE Research. Hayward is the largest industrial submarket and had 1.5% vacancy in Q1 2023, down from 2.1% in Q4 2022.