Case Study

Summary

San Leandro Commerce Center contains 306,805 SF and is located at 1980 West Avenue 140th Street in San Leandro, CA.  Situated upon 12.7 acres of land, the property has a coverage ratio of 55%, with a large parking lot of about four acres on the east side.  The property benefits from quick access to Interstate 880, and is within 10 minutes from the Oakland International Airport and Port of Oakland.

Situation

  • In 1959, Sears built this building to serve as a warehouse and distribution center for its retail stores.  Over the years, Sears repurposed the warehouse to refurbish and distribute major appliances.
  • In 2016, Sears made the decision to sell the property vacant, and listed it with Cushman & Wakefield to broadly-market it to interested investors.
  • As part of the decision to sell, Sears sought to remain in about 35,000 SF of the building in order to continue outlet sales.
  • Clarion Partners tied-up the property, and approached Orchard Partners to assist them with their due diligence and devise a renovation plan for the building.
  • On a redevelopment fee basis, parties pursued the transaction together.

Results

  • Concurrent with closing, ownership commenced discussions with an Oakland-based furniture manufacturer, Friant, to lease most of the building.
  • Orchard Partners designed and managed the entire renovation of the property, including a new electrical system and LED lighting, new sprinkler system, new loading dock configuration and positions, seismic upgrading, a ground up two-story office space and entrance, and exterior makeover of building and parking lot.
  • Shortly after its purchase, ownership signed a lease with Friant for 274,147 square feet, including a 14,000 square foot showroom for Friant’s products. Additionally, Sears leased the balance of the building to maintain a showroom presence in the Bay Area.
BEFORE
AFTER

Overview