Sagard Real Estate Acquires Additional Industrial Asset to Strengthen California Portfolio

Sagard Real Estate Expands U.S. Industrial Portfolio with Strategic San Leandro Acquisition

Sagard Real Estate, a leading U.S.-based real estate investment advisor focused on institutional-quality commercial properties, has taken another significant step in the expansion of its national industrial platform. The firm has announced the acquisition of a 260,989-square-foot industrial facility located in San Leandro, California, a key logistics hub within the broader Oakland–East Bay industrial corridor. The move aligns with Sagard Real Estate’s ongoing strategy of targeting core-plus and value-add industrial opportunities in established, high-demand markets across the United States.

The newly acquired property is strategically positioned in one of the most competitive industrial submarkets in Northern California. San Leandro, long recognized for its central position between major population centers and regional transportation routes, offers direct access to Interstate 880 and Interstate 580. The location places the building in close proximity to major freight and logistics nodes, including the Port of Oakland and Oakland International Airport—two of the most important industrial gateways on the West Coast. This location advantage supports efficient regional distribution, last-mile delivery operations, and strategic supply chain positioning—attributes that continue to be heavily sought after by logistics operators, manufacturers, and distributors.

Strong Market Fundamentals in the East Bay Industrial Region

The East Bay industrial market is one of the largest and most established industrial regions on the West Coast, totaling nearly 279 million square feet of industrial inventory. Despite its size, new industrial development in the region remains constrained due to limited available land, zoning restrictions, and pressures from competing uses. This creates an environment where existing functional industrial assets are increasingly valuable. Additionally, sustained tenant demand across manufacturing, warehousing, logistics, and e-commerce sectors has helped the region maintain strong occupancy rates and resilient rental performance, even through periods of broader economic uncertainty.

For Sagard Real Estate, the market’s favorable supply-and-demand balance supports the long-term value proposition of acquiring infill industrial properties. These locations allow tenants to operate near dense consumer bases, reducing transportation costs and improving delivery efficiency—important advantages in a distribution economy increasingly shaped by fast-moving supply chains and customer service expectations.

“We’re excited to continue executing on our high-conviction strategies across key seaport markets,” said Tyler Williams, Managing Director at Sagard Real Estate. “This transaction reinforces our belief in the strength of the U.S. industrial sector and the value that can be unlocked by building a diversified portfolio of infill properties in densely populated, supply-constrained markets.”

Williams noted that Sagard Real Estate’s commitment to the industrial asset class is rooted in the sector’s demonstrated resilience, the continued growth of e-commerce, and the critical nature of logistics real estate in national and regional supply chains. The San Leandro acquisition, he explained, represents a strategic opportunity to enhance the firm’s portfolio with an asset that is both functionally competitive and well-located for future growth.

Property Features and Functional Capabilities

Originally constructed in 1973, the San Leandro industrial facility has undergone a series of upgrades over its lifetime, including a recent renovation completed in 2024. The property is situated on 10.83 acres and features a combination of building specifications and site enhancements designed to support high-efficiency industrial use. Key features include 28-foot clear heights, which allow for efficient racking and storage; 30 dock-high loading doors and four grade-level doors for flexible inbound and outbound movement; and loading areas on three sides of the facility, offering operational adaptability for a range of industrial tenants.

The property also contains a 2,607-square-foot maintenance building and an adjacent 1.43-acre laydown yard, which provide additional functionality for fleet management, equipment storage, and outdoor operational needs. Upgraded electrical power infrastructure, scheduled for completion in late 2025, offers future tenants enhanced capacity to support a wider range of industrial applications, from advanced manufacturing to high-throughput distribution operations.

These features position the asset as a competitive offering in a market where tenant expectations continue to evolve and where functional building design has become a key differentiator in leasing and long-term value performance.

“The San Leandro acquisition exemplifies our ability to identify and execute on opportunities that combine strong market fundamentals, excellent functionality, and long-term cash-flow durability,” said Tom Stover, Managing Director of Acquisitions at Sagard Real Estate. “The property’s location, physical features, and connectivity make it a compelling addition to our growing industrial platform.”

Strategic Fit Within Sagard Real Estate’s National Industrial Platform

Sagard Real Estate has made the expansion of its U.S. industrial portfolio a core strategic priority. The firm continues to target metropolitan regions that are central to domestic logistics networks—particularly those near seaports, airports, intermodal hubs, and large consumer markets. By focusing on infill properties in supply-constrained environments, the firm aims to create a portfolio with stable long-term occupancy, attractive risk-adjusted yield, and meaningful potential for value creation.

The San Leandro acquisition reinforces the firm’s disciplined yet flexible investment approach. Rather than relying on opportunistic or speculative development strategies, Sagard Real Estate is pursuing assets where market fundamentals and property characteristics align to support both near-term performance and long-term appreciation. This approach, combined with careful asset selection, is designed to mitigate downside risk while positioning the portfolio for durable returns.

The firm also places emphasis on market knowledge and regional expertise, leveraging deep local networks to source, evaluate, and execute transactions efficiently. This acquisition is consistent with Sagard Real Estate’s broader strategy of strengthening its presence in major West Coast industrial markets, where port-adjacent locations continue to play a critical role in global trade and distribution.

As supply chain demands evolve and logistics networks continue to adapt to new patterns of consumer behavior, well-located industrial real estate remains fundamental to the functioning of the modern economy. The San Leandro property, with its strategic location, functional design, and access to major freight infrastructure, is well-positioned to meet the needs of current and future industrial users.

The acquisition underscores Sagard Real Estate’s ongoing commitment to disciplined investing, thoughtful portfolio construction, and long-term value creation. As the firm continues to expand its industrial platform, assets like the San Leandro facility will play an integral role in supporting the company’s growth and market strategy.

Sagard Real Estate is a real estate investment advisor and operator providing investment management services throughout the U.S., including portfolio management, acquisitions, debt origination, asset management, development, and property management for investors. With US$5.2 billion in assets under management, Sagard Real Estate offers commercial real estate investment strategies through separate accounts and commingled funds. Founded in 1997, the firm is headquartered in Denver and maintains regional investment offices in New York City, Charlotte, Austin, Los Angeles, and San Francisco metro areas. Sagard Real Estate is a part of Sagard, a multi-strategy alternative asset management firm

Source Link:https://www.businesswire.com/