607,000sf Solano County warehouse sells to BentallGreenOak for estimated $85 million

A New York-managed investment fund purchased a large distribution warehouse on 28 acres at 5195 Fermi Drive in Fairfield.

North Bay Logistics Owner LLC, overseen by BentallGreenOak, acquired the 607,200-square-foot building on Tuesday from GPT Fermi Drive Owner LP, an affiliate of Gramercy Property Trust, according to public records. JLL, which marketed the property for sale, helped the buyer secure financing and will continue to manage the facility, didn’t disclose the purchase price.

Market sources estimate the deal value to be roughly $140 a square foot, or over $85 million, at a capitalization rate of 4.3%.

Gramercy, a real estate investment trust with holdings worldwide, had purchased the building in December 2016 for $54 million, or nearly $89 per square foot, the Business Journal reported. The building, built in 1995, was part of a $521 million portfolio sale of 17 bulk logistics properties in several markets across the country by USAA.

“This is an excellent industrial asset BentallGreenOak acquired in order to enter the North Bay submarket,” said Ryan Sitov, part of the JLL professionals involved in the deal. “The North Bay submarket is currently experiencing unprecedented demand from capital and developers.”

One such example is the sale last month of the similarly named NorthBay Logistics Center at 700 Crocker Road in nearby Vacaville. Fully leased, the 831,000-square-foot e-commerce hub sold for an estimated $88.5 million, or $105 per square foot, at a cap rate of 5.3%.

Brokering the 5195 Fermi deal for Gramercy were Mark Detmer, Sitov and Andie Fezell of the JLL Capital Markets Investment Sales Advisory team as well as locally based Matt Bracco and Glen Dowling of The Dowling-Bracco Team of JLL.

With offices in 24 cities in 12 countries, BentallGreenOak is a global real estate investment manager for more than 750 institutional clients with around $50 billion of assets under management as of September 2020. Its portfolio includes office, retail, industrial and multifamily properties.

Jeff Quackenbush covers wine, construction and real estate. Before the Business Journal, he wrote for Bay City News Service in San Francisco. He has a degree from Walla Walla University. Reach him at jquackenbush@busjrnl.com or 707-521-4256.

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