By Kate Snyder
March 31, 2023
Activity in the Bay Area’s industrial market is heating up with the transfer of one of its most prominent properties. A more than 600,000-square-foot industrial campus in Newark that counts Meta as one of its tenants now has a new owner. Terreno Realty purchased the Morton Commerce Center for $186 million, or about $308 per square foot, according to an announcement from the company.
The property was developed by Overton Moore Properties in 2020. Cushman & Wakefield had the listing on the asset and the team that handled the transaction included Jeff Chiate, Rick Ellison and Mike Adey.
Located at 7395-7355 Morton Ave., the center sits on 31.4 acres. It totals 602,731 square feet in four buildings, with building one at 161,680 square feet, building two at 141,275 square feet, building three at 74,097 square feet and building four at 225,679 square feet, according to marketing information from Cushman & Wakefield. The Morton Commerce Center is 100 percent occupied by tenants Meta, Lucid Motors, RK Logistics and Pegasus Logistics. Meta signed a 225,679-square-foot lease at the center in 2019, according to previous reporting by The Registry.
The Morton Commerce Center features 30’-32’ clear heights, ESFR sprinklers, heavy power, abundant loading and solar-ready roofs, according to the marketing information. The campus is located in the heart of San Francisco’s East Bay industrial market, and according to Cushman & Wakefield, “this irreplaceable infill location is a true core investment opportunity in one of the strongest industrial markets in the nation.”
The Morton Commerce Center is just outside the main tech corridor that runs down the San Francisco Peninsula from San Mateo to San Jose, but is still home to several major companies. The site is located near the Dumbarton Bridge, State Route 84 and Interstate 880. Numerous big-name companies are located in the area, including Tesla, Amazon, Nordstrom, Bay Advanced Technologies and Worldpac.
Based in Torrance, Overton Moore Properties is a full service commercial real estate company, according to the firm’s website. Overton bought the project site from Morton Salt in 2017 for more than $30 million.
Terreno Realty is a real estate investment trust company that acquires, owns and operates industrial real estate in several major coastal U.S. markets, according to the firm’s website. The company is based in San Francisco.