Overton Moore Properties (OMP) is preparing to begin construction on a 760K SF advanced manufacturing and distribution complex in Livermore that is expected to be completed by Q3 2025.
The Torrance-based developer has purchased 41 acres of land for $41M from Pleasanton Gravel Company in an all-cash deal. Overton Moore is partnering with Invesco Real Estate on the project, which will be called OMP Oaks Business Park.
Fremont-based Lam Research, a semiconductor equipment manager, is pre-leasing 60% of OMP Oaks Business Park, which will encompass two buildings. One of the buildings will be 471K SF and the other will be 289K SF.
"After working on the entitlements and approvals in excess of five years, we're very excited to finally acquire the site, keep a great company within the City of Livermore and expand our presence in Northern California, Timur Tecimer, OMP CEO, said in a release.
Earlier this year, Overton Moore received approvals from the Livermore Planning Commission to rezone two parcels of land known as Surface Mining Permit (SMP) 39 and 40, encompassing a total of 71 acres, located between West Jack London and East Stanley boulevards near the Livermore Municipal Airport.
The OMP Oaks Business Park will rise on SMP 40. Preliminary plans for SMP 39 have indicated that another six light industrial buildings may be in the works, which could grow the entire industrial complex to nearly 1.5M SF.
Colliers International handled the land acquisition and will be the leasing broker for the OMP Oaks project.
"OMP Oaks Business Park will be the only new construction of advanced manufacturing/warehouse buildings that will be delivered in Livermore in 2025 and will fill a much-needed demand for this product type," said Michael Lloyd, executive VP of Colliers International.
In December, Livermore unveiled at a planning commission meeting the city's 2045 General Plan, which included a proposal to absorb an unincorporated part of Alameda County of nearly 1,000 acres on the city's eastern border for science and technology development.
The site, which is south of I-580, east of Greenville Road and north of Patterson Pass Road, is nearly double the size of the Lawrence Livermore National Laboratory, which sits to the northeast. Before any development can be undertaken on the site, city voters would need to approve an expansion of Livermore's urban growth boundary.
OMP, one of the leading developers and operators of logistics properties in the Western U.S., announced last month it has raised $150 million of equity capital to acquire existing industrial buildings in core markets throughout California.
With leverage, the allocation will provide $300 million of total acquisition capital to assemble a portfolio of well-located core industrial assets, according to the company.
"This capital allows us to acquire existing core assets, currently at historically favorable pricing, in the best markets in California," CEO Timur Tecimer said, in a statement.
"While we remain committed to development, the regulatory and political environments in California continue to make development more challenging, particularly in in-fill markets," said Pete Cassiano, OMP's chief investment officer. "We believe this dynamic creates an excellent opportunity to expand our capabilities to acquire and manage core assets for cash flow and long-term appreciation."