https://www.bizjournals.com/sanjose/news/2026/03/23/ups-selloff-industrial-sites-redco-dev-sunnyvale.html
Story Highlights
Redco Development bought a Sunnyvale UPS facility for $42 million.
The firm will build a 265,000-square-foot industrial building by 2027.
UPS sold 93 buildings last year to reduce annual costs.
Redco Development, the real estate development firm that acquired Wells Fargo’s headquarters in San Francisco, scooped up a vacant UPS facility in Sunnyvale for $42 million.
Chris Freise, managing partner and co-founder at Redco, told the Business Journal that Redco will redevelop the 160,000-square-foot UPS building into a 265,000-square-foot high-quality industrial building.
“There’s not many new industrial building that get built — period — and in West Valley,” Freise said on a phone call. “Everything’s kind of getting built in Fremont and Milpitas. It’s rare to get this here.”
Redco purchased the 13-acre property from Valacal Company, a subsidiary of UPS, on March 17. The company said it liked that the site was on the way to Levi’s stadium in Santa Clara and that it was next to major highways. Redco will target warehouse and research and development tenants such as those in auto and robotics industries.
Freise expects to break ground on the project toward the end of the year and spend roughly 12 months redeveloping the property. Redco intends to model the new building after its Diablo Park industrial site in Hayward.
Freise and his brother Jason founded Redco in 2019. The company is behind several ongoing redevelopment projects in the Bay Area, including the Willow Glen Apartment community in San Jose. The company said it is looking to acquire more industrial and multi-family sites in the coming months.
“We’re always actively looking,” he said.
Why UPS is offloading facilities
UPS announced last year in an annual report that it was jettisoning properties to save $3.5 billion annually by 2028.
Last year the package delivery service sold off 93 buildings. The Business Journals reported sales for several properties in Atlanta. The company also said in the annual report that it retired an aircraft fleet, automated work in 57 facilities, and identified 24 buildings to close in the first half of 2026.
Sarah Klearman at affiliate publication San Francisco Business Times contributed to this story.