The Berkeley Farms site in Hayward has been bought by a developer in a $48 million deal and the buildings will be bulldozed and replaced with a big industrial and logistics center.
The 20-acre site was bought by an affiliate of Reno-based Dermody Properties on Sept. 17, according to documents filed with Alameda County officials.
“The property offers immediate access to Highway 92, Interstate 880, the Peninsula and the Port of Oakland,” said George Condon, western region president for Dermody Properties. “Its central location allows companies to reach the largest number of customers in the shortest possible time.”
For decades, the triangle-shaped property at 25500 Clawiter Road in Hayward was the site of local operations of Berkeley Farms, a well-known Bay Area milk producer and dairy brand.
Berkeley Farms closed its doors and ceased operations in April, a shutdown that triggered the layoffs of 315 people. The closing arose from complications caused by the bankruptcy of its owner, Dean Foods.
Dermody Properties, acting through its affiliate, paid $48.2 million in cash for the site, the Alameda County property documents show.
Dermody’s future development is named LogistiCenter at Highway 92 and will consist of two modern logistics buildings that will total 382,000 square feet.
One of the buildings will total 228,000 square feet while the other will total 124,000 square feet, according to a Dermody site plan for the complex.
“New-construction, state-of-the-art distribution space is highly sought-after as infill development in the Bay Area,” said Shelagh Danna, Dermody Properties vice president.
Berkeley Farms was founded in 1910 by John Sabatte. The business originated as South Berkeley Creamery and was initially based in Berkeley.
The dairy company was the author of one of the most memorable advertising campaigns that asked the question “Farms in Berkeley?” which was followed by a cow’s moo as the answer.
In 1998, Berkeley Farms sold its operations and real estate holdings to Dean Foods and operated as a subsidiary for more than two decades.
“Our intention was to sell the Berkeley Farms facility as an ongoing business, meaning operations would have continued,” Dean Foods stated in email comments provided in April 2020 to this news organization. “Unfortunately, the lack of interested buyers has made the decision necessary.”
It appears that Dean Foods might have lost money on its $48.2 million sale of the Hayward parcels to Dermody Properties. At the time of the transaction, the 20 acres and the buildings atop the land were valued at roughly $75 million, Alameda County assessment records show.
Amazon, an electronic commerce behemoth, is the type of company that could be enticed by the new logistics center.
“As e-commerce continues to trend upwards, LogistiCenter at Highway 92 will help to meet the ongoing demand,” Danna said.
