Getting your
Trinity Audioplayer ready...FREMONT — A Fremont industrial building leased to Tesla has been bought for more than $100 million in a deal that suggests these kinds of properties can still entice investors despite tough times for other types of commercial real estate.
Clarion Partners, through an affiliate, has paid $132.3 million for a building at 49000 Milmont Drive in Fremont, documents filed on June 23 with the Alameda County Recorder’s Office show.
The building totals 267,100 square feet. An alliance of real estate giant Hines and investment firm Oaktree Capital Management sold the property to Clarion Partners, according to the Alameda County property records.
Clarion, a worldwide real estate investment firm, bought the building through an all-cash deal, the county documents show.
Tesla is the building’s tenant, Hines states on its website. CBRE, a commercial real estate firm, had previously scouted for tenants that would lease the property.
Hines bought the 14-acre property in 2021, paying $47 million for the site, according to public records. Hines redeveloped the site and transformed it into a modern industrial complex.
Tesla leased the building at a time when the electric vehicle manufacturer is becoming more involved in artificial intelligence applications and humanoid robots.
The property deal occurred with a backdrop of increased tech activity in Fremont, the Bay Area’s fourth-largest city.
“Fremont is the strongest performing industrial submarket in the Bay Area with demand from elite tech and advanced manufacturing users,” Hines states on its website.