Total Square Footage: 43,557
Acquired: August 29, 2023
Tenant Name: Nevada Heat Treating, LLC dba California Brazing
On August 29, 2023, Royal Oak acquired the light manufacturing facility of Nevada Heat Treating, LLC dba California Brazing (“California Brazing”) located in Newark, California within the San Francisco-Oakland-Berkeley Metropolitan Statistical Area (“MSA”). The San Francisco-Oakland-Berkeley (“East Bay”) MSA is the 13th largest MSA in the country. The overall East Bay industrial market has historically been one of the highest demand markets throughout the US and high-tech manufacturers continue to lease space in large numbers. This transaction represents another off-market, self-sourced opportunity for Royal Oak. As part of this transaction, Royal Oak agreed to the assumption of the current mortgage on the property at an attractive fixed rate of 4.035% through June 2029. There were approximately 14 years remaining on the in-place absolute net lease at closing.
The property was constructed in 2001 and is a 43,557 square foot light manufacturing facility situated on over 3 acres. Since California Brazing purchased the property in 2011, they have invested more than $8 million into the facility. The building is tilt-up concrete construction with glass curtain walls, 20-foot clear heights, heavy power, three loading docks, and three drive-in doors. As the main headquarter facility for California Brazing and its parent company, the property is home to a wide range of mission critical equipment.
California Brazing, founded in 2004, operates as a manufacturer for brazing services for aluminum and high temperature metals. They leverage their furnace brazing capabilities with CNC machining to provide customers with turn-key manufacturing for use in the aerospace, defense, and semiconductor markets. In 2018, California Brazing was acquired by a Dallas based private equity firm and has since been rolled into a new parent company, Vitesse Systems (“Vitesse”). Vitesse manufactures complex, high tolerance components for aircraft connectivity, specialty electronics, and various defense applications.