Hines Interests & Oaktree Capital Kickstart Construction of 267K SF Industrial Center in Fremont, CA

A joint venture between Hines Interests and Oaktree Capital Management has commenced construction on Milmont Industrial, a state-of-the-art 267,000-square-foot manufacturing and distribution center in Fremont, California. This facility is expected to be completed next year.

Financing and Acquisition Details

First Citizens Bank & Trust Co. provided a construction loan of $54.2 million in 2023, as revealed by public records. CBRE's Executive Vice Presidents Brad Zampa and Mike Walker, along with Senior Director Megan Woodring, were instrumental in securing this financing. The joint venture acquired the 14-acre industrial site for $47 million in 2021, which included the demolition of three outdated buildings from the 1980s to clear space for the new facility.

Facility Features and Marketing Plans

Once completed, the new Milmont Industrial facility will boast 36-foot clear heights and a flexible design to accommodate various manufacturing and distribution needs. CBRE will manage the marketing and leasing efforts for the property, leveraging its prime location.

Prime Location in the Warm Springs District

Situated at 49000 Milmont Drive, the site is located 10 miles north of downtown San Jose in Fremont’s Warm Springs District. This area is a hub for companies in the semiconductor, technology, electric vehicle (EV), and life science sectors, and is conveniently close to interstates 880 and 680, enhancing its accessibility and appeal.

Expanding Industrial Space in the Bay Area

The Bay Area's industrial space pipeline was robust, with nearly 4.4 million square feet under development, representing 1.5 percent of the region's total industrial stock as of March, according to a CommercialEdge report. A notable addition to this pipeline is Related Companies’ ambitious $8 billion mixed-use project in Santa Clara, California. Originally approved for 5 million square feet of office space and 1,680 multifamily units, along with 700 hotel rooms, Related has recently proposed converting much of the office space into up to 1.6 million square feet of light industrial and manufacturing space