Napa Valley warehouses sell for $44 million

This undated aerial photo from the south shows the nearly 267,000-square-foot warehouse property at 75 and 89 S. Kelly Road in American Canyon. An affiliate of Buzz Oates purchased the property on Aug. 22, 2024, for $44.5 million. (Courtesy: JLL)

A major builder of warehouses in Napa and Solano counties has added two fully leased American Canyon warehouses to its portfolio.

An affiliate of Sacramento-based Buzz Oates purchased 75 and 89 S. Kelly Road on Aug. 22 for $44.5 million, according to the brokers of the deal and public records. That price equates to nearly $167 for each of the 266,729 square feet in the two 19-year-old buildings.

The seller was LBA RVI-Company XLVIII LLC, a fund managed by LBA Realty of Carlsbad, according to public records. The fund had bought the 12.85-acre property Dec. 23, 2021, for $56.5 million, or almost $212 a square foot, from Angam IIA LLC, affiliated with Georgia-based bicycle distributor Dynacraft BSC, records show.

Dynacraft leases all of 75 S. Kelly and subleased 89 S. Kelly to Valley Wine Warehouse, a Napa-based third-party logistics company. Started in San Rafael in 1983, Dynacraft imports millions of bikes annually from Asia for the mass market. It expanded in a move to the American Canyon buildings in 2007, the Business Journal reported.

“75 & 89 South Kelly Road presented an attractive mark-to-market opportunity to acquire assets in one of the top-performing industrial markets in the country,” said deal broker Ryan Sitov in the announcement Tuesday. “This transaction highlights the continued strength and attractiveness of the Bay Area industrial market.”

Sitov and Melinda Marino were part of the JLL Industrial Capital Markets team that listed the building in the latest deal and found the buyer, PW Fund B Development LLC. That fund is managed by Pac West Equities LP, for which Buzz Oates is exclusive investment and operating adviser.

Among Buzz Oates holdings is the 163-acre Giovannoni Logistics Park project also in American Canyon. That project was approved earlier this year but has faced legal action, the latest coming from the city of Vallejo.

Consulting on the deal were local JLL agents Glen Dowling, Matt Bracco and Chris Neeb.

Jeff Quackenbush covers wine, construction and real estate. Reach him at jquackenbush@busjrnl.com or 707-521-4256.

Source: https://www.northbaybusinessjournal.com/article/article/buzz-oates-american-canyon-warehouse-082724/