Two East Bay industrial and manufacturing buildings were bought for more than their assessed value in a hopeful sign for a commercial property market haunted by widespread weaknesses in prices.
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San Diego-based Realty Income Corp. led a group that purchased a San Leandro building at 14470 Catalina St. for $26.7 million, documents filed this month at the Alameda County Recorder’s Office show.
The price was 47.5% above the building’s assessed value of $18.1 million, as calculated in January 2025. The building totals 90,700 square feet, the LoopNet property database shows.
Alere Property Group, a real estate firm with multiple California offices, headed up an entity that acquired a building at 33401 Central Ave. in Union City for $26.2 million, county documents show.
It totals 95,000 square feet and was purchased for 5.2% above its assessed value. JLL, a commercial real estate firm, had listed the building for sale.
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The increases in respective values for the two buildings hint that the properties might achieve higher assessed valuations in the future, which has implications for local government agencies and the services they provide. Property taxes produce a crucial revenue stream for cities, counties, regional agencies, and school districts.
Despite a severe slump in the value of hotels, office buildings and apartment properties in the East Bay and elsewhere in the Bay Area, the region’s industrial and manufacturing hubs still fetch sturdy prices.
These sites can entice artificial intelligence companies such as OpenAI, whose Bay Area expansion includes a deal to lease an industrial hub in Richmond.
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