Poseidon Nears 7-Year Lease on Building 11 at Alameda Point
The drone cargo startup is one vote from moving into a Navy hangar that's sat empty since 2020.
By The Alameda Pulse
Poseidon Aerospace, a startup building pilotless cargo planes, is one vote away from a seven-year lease on Building 11, the 110,500-square-foot Navy hangar at 1190 West Tower Avenue at Alameda Point in Alameda, CA. The Alameda City Council introduced the lease on October 20, and final passage is on the November 4 agenda.
- Where: Building 11, 1190 West Tower Avenue, Alameda Point
- Term: Seven years, with two five-year options, so up to 17 years in all
- Rent: $1.50 a square foot, triple net, rising 3.5% a year
- City's take: More than $12.6 million over seven years, after credits and commission
- Next: Final council vote November 4. If it passes, the lease starts December 5, 2026
What is Building 11 at Alameda Point?
It's a hangar the Navy built in 1941 as an aircraft rework shop, and it's been empty since the end of 2020.
Google and Makani were the last real tenants. Since then the city has dealt with trespassing, copper theft and water leaks, and the roof is in poor shape. But it still has high power, four overhead cranes and big west-facing hangar doors, just what an aircraft builder wants. It's not the first try at filling it: in 2023 the council turned down a lease with Science Corporation.
Who is Poseidon Aerospace?
It's a company founded in 2023 in San Francisco that builds autonomous cargo aircraft and wants to run its own freight network with them.
The city staff report on the Poseidon lease says the company has 30 employees now and expects about 100 in 2027, with most of them based at Alameda Point. It recently closed $60 million in Series A funding. It's already working out of the hangar on a short-term license.
It'll have familiar neighbors in Saildrone, Rain Industries and Pyka, which pulled off a pilotless 200-pound airdrop from Alameda Point.
Will Poseidon test aircraft engines at Alameda Point?
No, not under this lease. The company says its engine and test work happens at its facility in Oregon.
The lease covers offices, research, light manufacturing and assembly. A city memo says outdoor testing, or anything sending noise, smoke or vibration off site, would need a separate, publicly noticed Use Permit. Poseidon hasn't applied for one.
What does the deal cost Alameda?
The city gives up some money up front to land a tenant.
- $2,024,900 in rent credit, about 12 months of rent, spread over the first two years
- $828,905 for the broker's commission, paid in year one
- The city keeps responsibility for a future roof replacement. The ballpark estimate for the whole Building 11, 12 and 400 complex is $10.6 million.
In return, Poseidon puts down a $1,020,000 security deposit, covers taxes and upkeep, and plans $1.5 million to $3 million in improvements like offices and restrooms.
What happens next
The council takes its final vote November 4, and the lease would start December 5, 2026. Follow more Alameda business news as Alameda Point keeps filling up.
