OMP Acquires Livermore Industrial Hub Amid Market Shift

LIVERMORE, CA – January 28, 2026 – In a significant move that underscores a strategic pivot in a recalibrating market, Overton Moore Properties (OMP) has announced its acquisition of the Altamont Shallow Bay Industrial Portfolio in Livermore. The portfolio consists of two fully leased, multi-tenant buildings totaling 245,472 square feet, solidifying the company's expanding footprint in Northern California's competitive industrial landscape.

The properties, located at 7650 and 7888 Marathon Drive, represent a high-value asset in one of the East Bay's most sought-after submarkets. This transaction marks the third major acquisition under OMP's 'Core Plus' investment strategy, signaling a deliberate focus on acquiring stable, income-producing properties in prime locations.

A Strategic Play in a Shifting Market

OMP's acquisition comes at a time of transition for the East Bay industrial market. After several years of relentless growth and record-low vacancy, the market has begun to normalize. Recent data from late 2024 shows the East Bay's industrial vacancy rate rising to 8.3%, a notable increase from previous years. Concurrently, after a long run-up, average asking lease rates have seen a modest year-over-year decline of 4.1%, giving tenants more negotiating leverage than they have had in recent memory.

Furthermore, the frenetic pace of new construction has slowed considerably, with the East Bay's construction pipeline pausing in the last quarter of 2024. In this environment of rising vacancy and stabilizing rents, OMP's decision to acquire a 100% leased, existing asset rather than pursue new development appears particularly shrewd. The move allows the firm to sidestep the risks and rising costs associated with new construction while securing immediate, durable cash flow from a high-quality property.

The Altamont portfolio is a prime example of a 'best-in-class infill asset.' Situated on 12.8 acres, the two buildings boast highly functional features essential for modern logistics and manufacturing, including 74 dock-high doors, 18 grade-level doors, and clear heights ranging from 24 to 26 feet. This functionality makes the space adaptable for a wide array of tenants, from warehousing and logistics operators to light manufacturers.

The Core Plus Playbook in Action

This acquisition is a textbook execution of OMP’s Core Plus strategy, an investment approach that sits between ultra-safe 'Core' investments and higher-risk 'Value-Add' projects. Core Plus focuses on acquiring high-quality, well-occupied properties that generate stable income but also offer potential for modest value enhancement through active management and operational improvements.

The Altamont portfolio fits this profile perfectly. It is fully occupied by a diversified roster of 13 tenants, with no single company accounting for more than 10% of the total rentable area. This diversification significantly mitigates risk and ensures a consistent income stream, insulating the investment from the potential disruption of any single tenant's business cycle.

This is the third such acquisition for OMP's Core Plus fund, following two previous purchases in Southern California's Inland Empire. The strategy is backed by significant capital, as OMP announced in mid-2024 that it had secured $150 million in equity, providing $300 million in total purchasing power for existing industrial buildings. This war chest signals a clear strategic pivot for the 52-year-old company, acknowledging that the challenging regulatory environment in California makes acquiring existing assets a more attractive proposition than ground-up development in many infill markets.

Validating Livermore's Enduring Industrial Strength

While market-wide statistics suggest a cooling trend, OMP's investment serves as a strong vote of confidence in the long-term fundamentals of Livermore and the greater East Bay. The region remains a critical hub for logistics, distribution, and manufacturing, driven by its proximity to the Port of Oakland, major transportation corridors like I-580 and I-680, and a large consumer and labor base.

The very factors that make new development difficult—including land scarcity, regulatory hurdles, and community opposition to new warehouse projects—also serve to enhance the value of existing, well-located industrial properties. By securing a functional, modern facility in this supply-constrained environment, OMP has acquired an asset that is becoming increasingly difficult to replicate.

"We are excited to expand our Northern California footprint with the acquisition of the Altamont Shallow Bay Industrial Portfolio, a best-in-class infill asset in one of the East Bay's most supply-constrained industrial submarkets," said Pete Cassiano, Chief Investment Officer of OMP. "The portfolio's exceptional location, functionality, diversified tenant base, and attractive basis relative to replacement cost made this a compelling investment and a strong addition to our growing core plus portfolio."

This sentiment reflects a broader understanding that as the Bay Area economy evolves, the need for efficient, well-placed industrial space to support supply chains and light industry remains constant. OMP's purchase is not just a real estate transaction; it is a strategic placement of capital based on the enduring economic importance of the region.

With a history stretching back to 1972 and a portfolio of over 40 million square feet developed or acquired, Overton Moore Properties has a long track record of navigating market cycles. Its vertically integrated model—spanning acquisition, development, management, and leasing—gives it a distinct advantage. This latest acquisition in Livermore demonstrates the firm's ability to adapt its strategy to current market realities, positioning itself for stable growth and long-term appreciation by focusing on quality and location. The move highlights the firm's confidence that well-chosen assets in core markets will continue to outperform, regardless of short-term market fluctuations.