CBRE Arranges $87.5 Million Sale of Nine Building Benicia Industrial Portfolio

CBRE has arranged the $87.5 million sale of a nine-building, 534,550-square-foot industrial portfolio located in the Benicia Industrial Park in the San Francisco Bay Area to NorthPoint Development.

The properties included in the sale are Benicia Commerce Center I & II at 6200–6850 Goodyear Road and Benicia Industrial Way at 5301–5341 Industrial Way in Benicia, California.

Rebecca Perlmutter and Brian Russell of CBRE National Partners West, along with Tony Binswanger, Bo Harkins and Brooks Pedder with CBRE's Walnut Creek office, represented the seller. Steve Roth, Val Achtemeier, and David Milestone with CBRE Capital Markets' Debt & Structured Finance arranged the buyer's financing.

The portfolio of two infill locations was fully leased to 19 diverse tenants at the time of sale. The properties feature below-market rents, staggered lease expirations and a weighted average lease term of 3.43 years. Tenants have occupied the park for an average of nearly 15 years.

"This is the highest quality industrial product in Benicia with a rare combination of scale, dock high loading, and embedded growth within one of Northern California's most supply-constrained industrial markets," said Rebecca Perlmutter, vice chairman with CBRE National Partners. "The campus benefits from a highly diversified tenant roster with a long history of tenant retention, creating a compelling opportunity for Northpoint to steadily increase its cash flow, while owning a premier multi-tenant industrial portfolio in a strategic Bay Area location."

According to CBRE Research, the Benicia submarket has recorded 23% average annual rent growth since 2020 and has maintained a vacancy below 2%, making it the strongest industrial submarket in Napa-Solano County. The portfolio's small-bay product aligns with one of the region's most supply-constrained segments, with vacancy of 4.8% for units under 25,000 square feet and 5.2% for units between 26,000 and 50,000 square feet. Only 38% of the region's industrial inventory offers dock-high loading.

Benicia is the first destination after crossing the I-680 Benicia–Martinez Bridge, providing direct access to major transportation corridors and major population centers and labor pools across San Francisco, Oakland, the Central Valley and Sacramento. This strategic location supports efficient distribution throughout the Bay Area.

"Benicia has quietly become a highly desired industrial investment market in Northern California," added Tony Binswanger, executive vice president, CBRE. "With virtually no available land for meaningful new industrial development, strong tenant retention, and direct access to the Bay Area's key distribution corridors, assets of this caliber are increasingly difficult to replicate."