A big industrial and logistics warehouse in Fremont has traded hands.
New York-based Link Logistics sold the facility at 47020 Kato Road for $79.5 million, records on file with the Alameda County Assessor’s Office show. New York City-based private equity firm KKR, also known as Kohlberg Kravis Roberts, was listed as the buyer. KKR declined a request for comment for this story.
The 209,700-square-foot property, called the Frontier Elm Business Center, sits in an area that has become an industrial hub, with companies like Tesla, Boston Scientific, Delta Electronics and Seagate taking up space there.
Industrial and warehouse firm RK Logistics Group currently occupies the building, which it describes on its web site as the largest lithium battery distribution facility in California. The Fremont-based company pre-leased the property in July 2023 while the property was still under construction.
The property traded hands at a volatile time in the industrial market, which boomed during the pandemic. But rapid development of warehouse space has created a wider supply of options for tenants.
The East Bay felt this shift especially hard, reaching a vacancy rate of 5.9% in the second quarter of 2024, up from 4.9% in the first quarter, data from real estate services firm CBRE shows. Net absorption, which measures space leased minus space vacated, hit negative 1.3 million square feet in the first quarter of 2024, down from 419,000 square feet the same time last year.
Fremont’s industrial vacancy rate was slightly lower, reaching 3.8% in the second quarter of this year.
