Located in the booming East Bay city of Hayward, CA, Eden Landing Business Park is a ten building small bay industrial and office project totaling approximately 195,044 square feet. Originally developed by the Koll Company in 1976, the project is situated directly adjacent to the 92 Freeway which is the entry point to the San Mateo Bridge linking the East and West Bays, mid-point in the San Francisco Bay markets. Eden Landing is one of just a few small bay, multi-tenant industrial/flex parks along the 880 Corridor between Fremont and Oakland in a sub-market that has less than a 3% vacancy rate.
CIP Real Estate acquired Eden Landing in November 2017 through a joint venture with an affiliate of Alex. Brown Realty. The purchase price was approximately $25,750,000 ( $132 per square foot), a significant discount to its replacement cost of more than $245 per square foot in the very supply-constrained Hayward sub-market. The joint venture has commenced a $2.0 million, full cosmetic renovation of the project including new paint scheme, architectural features, landscaping, lighting, and signage in addition to new roof and HVAC installations.
The business plan is mainly a focused effort to re-brand the project, improve tenant quality, increase occupancy from 85% at acquisition to match the market’s 95% level, and escalate rents to market levels.
Eden Landing Business Park was a rare opportunity to purchase an asset in the 880 Corridor – very few flex/industrial projects come available in any year – and the joint venture expects very strong institutional investor interest upon the scheduled disposition after the five year hold period.
