Denver-based DCT Industrial Trust is planning to invest a total of $15 million for the development of a 75,000 square foot industrial property in San Leandro, according to sources familiar with the project. The site is located at 2001 Williams Drive and covers 3.6 acres of land.
DCT declined to comment on the amount it planned to invest in the project when contacted for this story.
The development of this project was just started. “We have begun the process of scraping off the pavement of the surface parking lot. Our expectation is that the development of this property should be completed by around March of 2018. This depends on how much rain the area gets over the winter,” says David Haugen, a senior vice president with DCT. He works out of the company’s regional office in Emeryville and is responsible for the company’s investment and development efforts in the San Francisco Bay Area.
DCT will be developing the project with 100 percent equity that the company will be providing. This a very typical process for the real estate investment trust. The company had acquired the land for the project earlier this year for $5.435 million, according to public records.
DCT is hoping to lease the property to a single-tenant. “Our design for this project is that it could be leased to two tenants, but our preference is to have one tenant to occupy the space,” said Haugen. The property will be developed as warehouse or manufacturing type of space. It will have 30-foot clear heights. The office component is projected to be somewhere in the neighborhood of 3,000 square feet.
The leasing efforts on this project will be overseen by Cushman & Wakefield. The listing agents are Jeff Starkovich, managing principal, and Michael Karp, managing director. Both work out of the company’s Oakland office.
This development reflects the conditions of the industrial market in San Leandro. “There really is no land left to build new projects on in the city. The only way to do this now is through a redevelopment like we are doing,” said Haugen.