Jan 31, 2019 | Baltimore, MD — Alex. Brown Realty (ABR) and their joint venture partner, California Industrial Properties (CIP Real Estate), are pleased to announce the acquisition of a five-building, 148,926 sf R&D/flex industrial business park located in Fremont, California. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $10.13 million in the joint venture. Financing for the acquisition was provided by BB&T Real Estate Funding, LLC.
The five-building portfolio, known as the Fremont Business Center, is situated on 10 acres located on Warm Springs Road, a major North/South thoroughfare that runs parallel to I-880 and I-680 along the east side of the San Francisco Bay Area. Building sizes range from 17,000 sf to 40,000 sf with each building containing approximately one-third office space, one-third R&D/lab space and one-third warehouse space.
At acquisition, the portfolio was 81% occupied by 11 tenants with suite sizes ranging from 5,000 sf to 18,000 sf. The joint venture strategy includes leasing the existing 28,000 sf vacant space and completing targeted property improvements, including installation of new roofs on four buildings, as well as HVAC upgrades and other capital renovation projects. CIP Real Estate Property Services, a wholly-owned subsidiary of CIP Real Estate, will perform on-site property management and construction management, as well as reporting and accounting services to the project.
“Fremont has benefited from the strong growth experienced in the Bay Area over the past decade,” said Eric Smyth, principal and co-founder of CIP Real Estate. “The portfolio is well-located within the market and is a welcome addition to our industrial portfolio,” added Smyth.
“CIP is a strong joint venture partner and we are pleased to be partnering with them yet again,” stated Tom Burton, ABR’s Senior Managing Director and CIO. “We are confident that their extensive management experience will help increase revenues and ultimately produce a positive outcome for our investors,” added Burton. ABR has acquired 19 properties with CIP since 1998 in California and North Carolina, totaling $313 million in total capitalization.
Alex. Brown Realty (ABR) is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
CIP Real Estate (CIP) is a full service real estate investment and management company focused on the acquisition, development and repositioning of office and industrial parks. Founded in 1995, CIP owns and manages more than 5M sf. of multi-tenant industrial, office and business parks throughout California, Nevada and North Carolina. CIP is headquartered in Irvine, California with additional full-service offices in Ontario, California, Las Vegas, Nevada, and Charlotte, North Carolina. The principals and founders of CIP are Eric Smyth and Bob Strom.