Centrum Properties announced that the company would initiate a $23 million upgrade and modernization of the SFO Logistics Center, a regionally important distribution facility in South San Francisco.
Centrum’s upgrade project will turn what is already a sought-after commercial facility into the Bay Area’s premier warehouse distribution center. The SFO Logistics Center was built 60 years ago and has long played a vital role as a warehouse and distribution facility for the General Services Administration and US Postal Service.
‘We’re delighted that Centrum Properties is making this major investment in our city,’ said Marty Van Duyn, Director of the Economic and Community Development Department for the City of South San Francisco. ‘The Centrum project is one of the largest real estate investments ever made here and it is a vote of confidence for the City of South San Francisco, our business climate and our economy.’
The SFO Logistics Center is a 572,000 square-foot warehouse and distribution facility situated on 26 acres with easy access to three major freeways and the San Francisco International Airport.
The refurbished Logistics Center will provide a golden opportunity for South San Francisco’s existing distribution companies to take advantage of a newly modernized facility. As logistics companies in the city move into the Logistics Center, commercial real estate in the city’s award-winning biotech business zone will become available to other companies looking to expand, particularly growth industries such as biotech and life sciences. South San Francisco now has over eight million square feet of state-of-the-art Biotech office space.
Renovations are expected to begin in early 2009. During this time Centrum will continue to offer leasing opportunities to tenants. The project will be completed and available for lease by new tenants in October 2009. Improvements to the site include seismic safety updates, infrastructure enhancements, tenant upgrades and installation of new buildings.
‘The city of South San Francisco is an excellent location and we believe this investment will be a major success,’ said Michael McLean, vice president for development of Centrum Properties. ‘Once renovations are complete, we anticipate the SFO Logistics Center will become the premier distribution center for the Peninsula.’
Centrum Properties and its equity partner Angelo, Gordon & Co. purchased the property for $36.5 million from the General Services Agency in August 2008. Full funding for the project has already been secured.