Redco Development and New York Life Investments have made an acquisition in Hayward, California, spending $9.25 million on a 4.39-acre site for the redevelopment of a 98,000-square-foot industrial project. Located at 25375 Clawiter Road, Hayward, CA, this property holds immense potential for ground-up industrial development in a highly supply-constrained infill submarket.
The acquisition came after Fremont Bank, the previous owner/occupant, experienced several unsuccessful marketing attempts. As part of the purchase agreement, Fremont Bank will lease the two existing office buildings on the site for the short term while Redco Development and New York Life Investments obtain the necessary entitlements, according to Redco’s website. Construction is estimated to commence in the first quarter of 2024, with the project anticipated to be completed later that year.
What makes this property particularly appealing for Redco and New York Life is its strategic location. Situated less than half a mile from the first exit off Highway 92 and I-880 interchanges, it offers excellent connectivity and accessibility. The surrounding area has witnessed a number of new developments by various institutional owners, further enhancing the desirability and potential for success.
“We believe our project will be a highly desired asset for near and longterm on the improving Clawiter Road corridor with high identity corner and great highway access,” said Chris Freise, managing partner & co-founder of REDCO Development, who oversees the company’s Northern California portfolio.
One advantage that the development team sees in this site is its high-profile corner entrance into the Diablo Industrial Park, located at the intersection of Diablo Avenue and Clawiter Roads. This high-identity corner entrance will contribute to the visibility and recognition of the industrial project and likely attract potential tenants and investors.
The redevelopment of this 98,000-square-foot industrial project presents an opportunity in the growing Hayward industrial market. Redco Development and New York Life Investments see the potential of this project and its ability to cater to the needs of businesses seeking modern industrial facilities in this region. The companies will begin seeking entitlements as soon as possible and plan to have construction commencing in early 2024.
The brokers who helped make this deal possible include Dave Haugh of Newmark, along with Mark Maguire and Nick Mascheroni of Colliers, who represented Fremont Bank on sale.