BERKELEY — A California real estate group has bought more than a dozen parcels on a choice Berkeley site where the organization aims to develop a vast innovation and life sciences campus, public records show.
The development firm paid nearly $49 million for 16 parcels in western Berkeley that allowed them to assemble a big site bounded by Eastshore Highway, Gilman Street, Third Street and Page Street, according to documents filed on July 31 at the Alameda County Recorder’s Office.
The new owners of the site are operating as Forge Development, whose mailing address is in the San Diego County beach town of Del Mar, according to state government official filings. A group called PF Capital and veteran real estate executive Jonathan Praw, a veteran real estate executive, also have key roles in the project.
The development will replace sites that include the former operations of Pacific Steel Castings Steel Mill and Berkeley Forge & Tool.
“This is a significant and positive development for our community that pays tribute to the important history of this steel mill site while paving the way for a brighter future for the West Berkeley community,” Berkeley Mayor Jesse Arreguin said.
Berkeley Forge is the anticipated name of the project. The development would total about 900,000 square feet if it is fully built out.
“The project provides an opportunity to build on the history of research, development and manufacturing in West Berkeley and will bring the next era of innovation in life sciences to Berkeley,” the developers stated in their application to the city.
The development appears to fit into the city’s overall economic plans for this section of Berkeley, city documents state.
“By restoring derelict, environmentally blighted properties to productive industrial use and creating jobs,” the Berkeley Forge project will help to “maintain and improve the quality of life for West Berkeley residents and workers,” city planning documents stated.
For many years, Pacific Steel Casting operated a thriving manufacturing operation and employed 650 workers in the years before it filed for bankruptcy in 2014. After the bankruptcy filing, the property was abandoned and became a fenced-off site scarred by graffiti.
“Since the closure of Pacific Steel Casting, the area has suffered from neglect,” city documents state.
Some of the proceeds from the property sale will provide $24 million to fund the unpaid pensions of former steelworkers, Berkeley city officials say.
“This agreement is a win-win by taking care of the unpaid pensions of the hard-working steelworkers while investing in a brighter future for the surrounding community,” Arreguin said.
The project could potentially accommodate 4,500 workers, using conventional ratios for the amount of square footage for each employee.
“Once complete, the redevelopment will further Berkeley’s history of progressive research and innovation by supporting new jobs at a range of skill levels to train and retain workers and existing businesses while attracting new businesses and top talent to the region,” city documents state.