Developer Purchases Industrial Property, Plans to Sell Off Pieces

LIVERMORE, CA-Des Moines-based Principle Capital Real Estate Investors is selling off some of the 100 acres here it recently acquired from JJ Dancien LLC for $20 million. The so-called National Road site is one of the last pieces of available land along the I-580 corridor. Principle Capital was one of six different bidders for the property.

The property will most likely be used for high-tech and R&D buildings, says Principle Capital’s managing director Rod Vogel. Among other deals in the works, Principle says it will sell 11 acres to East Bay developer Balch Enterprises, which plans to build four high-end manufacturing buildings that will total 175,000-sf. The company is undecided on whether it will sell or lease the buildings.

Principal Capital’s plans for the property it holds onto include up to 1.5 million sf of flex space. Even though the site is zoned for warehousing, distribution, research and development, Vogel says it will not be used for warehousing. Low vacancy rates coupled with a lack of land make this a prime location for development, he says.