Westcore Properties acquired the 16.5-acre site of the former San Francisco Chronicle printing facility at 1550 Pacific St. in Union City, CA.
Terms of the sale by Hearst Communications, Inc. were not disclosed. The 163,000-square-foot former printing plant will be demolished to make way for a 300,000-square-foot manufacturing and distribution facility catering to food production and distribution, according to Colliers International, which represented Westcore.
With businesses expanding and the Union City market tightening considerably, speculative development has become commercially viable, said Kevin Hatcher, vice president, Colliers International in Oakland, calling the development "a generational opportunity for opportunistic users to upgrade functionally obsolete facilities to Class A facilities."
The Colliers International industrial team in Oakland last year represented Westcore in the purchase of Central Plaza, which sits on the parcel immediately to the south. When completed in 2014, the combined development will total about 475,000 square feet on 27.5 acres.
Colliers Oakland represents Westcore in project marketing and is pursuing users in the market for build-to-suit opportunities ranging from 40,000 to 200,000 square feet.
Hatcher, Mark Maguire and Greig Lagomarsino with Colliers International in Oakland represented Westcore. John McManus and Andrew Briner with Cushman & Wakefield represented Hearst Communications.