Skip to main content Skip to footer

Industrial Warehouse in California’s East Bay Sells for $80 Million

PR_Kato_Aerial_211128_1536x1040

Institutional buyers show strong favor for well-located industrial assets

Fremont, Calif. November 23, 2021 – Leading diversified professional services and investment management company Colliers announced today the successful sale of an industrial warehouse in Fremont at 47550 Kato Road for $80,000,000.

Colliers’ Executive Vice President Ed Hofer and Senior Vice President Casey Ricksen represented the seller, CW Kato LLC, and procured Fortress Investment Group LLC as the buyer. Fortress Investment Group LLC is a leading, highly diversified global investment manager with an expanding portfolio of business in the Bay Area.

At the time of the sale, the 259,737 square-foot warehousing/distribution center was leased to a tenant with less than five years remaining on their lease.

“Fortress Investment Group’s acquisition of 47550 Kato Road is just one of many transactions contributing to the industrial sector’s dominance above all other asset classes,” said Hofer. “On top of the fact the asset’s prime location in a core market, the building was sold for a relatively low cap rate given its age and length of the tenant’s lease.”

As the Silicon Valley’s second-largest submarket for industrial activity and supply, Fremont showed 42,407,819 square-feet of total inventory by the end of the third quarter 2021. The area’s desirability for industrial warehousing and distribution due to its centralized location was highlighted by an availability rate of 6.2 percent and vacancy rate of 3.6 percent, 1.8 percentage points less than the 5.4 percent of the previous quarter. Fremont’s year-to-date net absorption reached 1,013,584 square-feet with 478,042 square-feet of inventory absorbed in the third quarter. The area’s supply of new development continues to grow with 61,098 square-feet under construction.

 

Media Contact:

Solana Tanabe

Allison+Partners for Colliers Northern California

solana.tanabe@allisonpr.com

 

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 26 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.6 billion ($4.0 billion including affiliates) and $46 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.



 

 


Related Experts

Edward Hofer

Executive Vice President

Silicon Valley

Over the past 31 years, Ed has specialized in leasing, selling, and providing consulting services to industrial tenants and property owners.  Ed has completed over 800 transactions totaling over 25 million square feet.

Ed was inducted into the Association of Silicon Valley Brokers ("ASVB") Hall of Fame in 2014.  He was awarded the 2006 and 2012 Industrial Broker of the Year award by the Association of Silicon Valley Brokers (“ASVB”) and was a finalist for the 2007,  2009, and 2016 Industrial Broker of the Year award.  

Ed was also named as one of Silicon Valley’s top 25 brokers in 2003, 2004, 2006, 2008, 2009, 2011, and 2016 by the CoStar Group. 

Ed is a member of the Association of Silicon Valley Brokers ("ASVB") and of the Society of Industrial and Office Realtors ("SIOR"). Membership in SIOR is by invitation only and earned by tenured performance in the industry and strict adherence to the highest standards of professional ethics. The SIOR designation ensures a level of brokerage expertise unmatched by competing brokers in local, regional and national markets. 

Upon graduating from the University of California at Davis, Ed went to work for First American Title Company as a commercial account manager. In 1986, Ed moved into brokerage and joined Blickman Turkus (now Cushman Wakefield). In 1992, Ed moved to Colliers International in order to better serve his expanding industrial client base. 

In 1995, Ed became a principal of Colliers International.

View expert

Casey Ricksen

Senior Vice President

Oakland

I specialize in the sales and leasing of industrial properties throughout Northern California, primarily along the I-880 corridor in Union City, Fremont, San Leandro, San Lorenzo and Hayward.  

Over 28 years in the business, I have handled transactions for warehouse, manufacturing, high-tech, and R&D/office property that total more than 14 million square feet.  My clients include institutional and private investors, developers, and both corporate and individual users of industrial space.  I deeply value the relationships I have developed with my clients, many of which have lasted years as their businesses have expanded and transformed. 

I aim to be straight-forward, transparent, and informative in my practice.  To me, excellence as an industrial broker starts and ends with investing the time it takes to optimize the outcome for my client—time to understand their business, to educate them about the market and strategies, to work the best possible deal on their behalf.  Attention to detail always delivers value but takes time, and I do believe my long term success as a broker has a lot to do with that commitment.

Before becoming a broker I worked on oil rigs in Santa Barbara, in Alaska on a fishing boat, and in construction in the Bay Area.  I joined Colliers in 1997, after starting eight years earlier at White Commercial Real Estate, an East Bay commercial real estate firm.  Presently my wife Rebecca and I live with our daughter in Moraga.  We love to travel and are avid supporters of Cal Athletics. 

Select Client List:
United Logistics
Coca-Cola Enterprises
Reid Plastics
Gymboree Corporation
Aetna/Allegis
Lincoln Property Company
AGA Warehouse Co., Inc.
Herman Christensen & Sons
Tab Warehouse & Distribution
Evans Rents Furniture
Hawaiian Express
Equitable Real Estate
Western Container Corporation
Principal Financial
Simeon Properties
Riddell
Principal Financial
AEW Capital Management
Teasure Chest
Mortimer B. Zuckeman
Homelegance, Inc.
Copley Real Estate Advisors, Inc.
Thyssen, Inc.
King & Lyons
Special Dispatch
RREEF
United Couriers
Kennedy
Prologis
EOP
ING Clarion
KTR Capital Partners
Kemper Real Estate
Flash Logistics
AMB Property CorporationHarp Lighting
Hickory Springs of California
Big Joe of California
Dal Tile
FedEx
Federal Mogul
Harvest Properties
Southern Pacific
Tulloch Construction
Dawn Food Products
ATE Logistics
Pacific Coast Service
Morgan Stanley
AmAsia International, Inc.
Pac-Am
TA Associates
Amcor Sunclipse
JACO Environmental
Global Investor Team

References:
Bob Bisnette - ProLogis
John Carley - Cornerstone Properties
Francis Meynard - Pac-Am
John Purcell, Dir. Real Estate - Diagio North America
Rosa Chao - Homelegance, Inc.
Tom Wagner - Harvest Properties
Scott Reno - C&J Construction
Rick Bruzzone - Reed Smith
Keith Fink - Morgan Stanley
Brian Tulloch - Tulloch Construction
Boyd Kiefus - Big Joe Racking
Jeff Uittenbogaard - Principal Global Investors
Scott Lamson - ProLogis
Lena Cheung, President - United Logistics
Melinda Ellis-Evans - Ellis Partners
Lane Stephens - Stephens & Stephens
Dan Anderson, CEO - McLellan Estate Co.
Tim Murphy - Kearny Investments
John Dearing, President - Special Dispatch

View expert