Also: East Washington Place signs several leases
Seven years after making the largest single purchase of North Bay commercial real estate – 1.43 million square feet of mostly office space for $263 million – Equity Office Properties is marketing for sale all the properties it still retains in Marin and Sonoma Counties counties.
In Santa Rosa, Equity Office is courting buyers for 15 office buildings with nearly 700,000 square feet through a San Francisco-based Jones Lang LaSalle team and Shawn Johnson, managing partner of Keegan & Coppin/ONCOR International in Santa Rosa. Equity Office affiliates did own Parkpoint Business Center in the southwest before a 2009 foreclosure. Another building was sold to Santa Rosa Community Health Centers.
Chicago-based Equity Office plans to call for purchase offers on July 12 for the Santa Rosa properties, according to Aaron Herter, vice president in Jones Lang LaSalle’s Capital Markets Group.
The Santa Rosa properties include a number of prominent office buildings ringing the North Bay’s largest city. Together, they are two-thirds leased. That ranges from the half-occupied properties of Airport Center, where Medtronic had expanded several years ago and then scaled back its holdings, and The Lakes Corporate Center in the southwest to the more than three-quarters full properties in the Fountaingrove northeast area and Oak Valley Business Center near Charles M. Schulz-Sonoma County Airport.
Oak Valley enjoyed a boost to nearly 81 percent occupancy in late May, when St. Helena Hospital leased 20,000 square feet of office space. The hospital declined to comment on plans for that space. The institution’s owner, Adventist Health, has hospitals and clinics in Mendocino County and had pursued an affiliation with Palm Drive Hospital in Sebastopol.
Equity Office, part of private-equity firm The Blackstone Group, also is considering multiple purchase offers received in late May by Eastdil Secured‘s San Francisco office on all 15 of Equity Office affiliates’ Marin County office buildings, totaling nearly 711,000 square feet. Real estate experts familiar with that marketing effort told the Business Journal that the prospective buyers are institutions and the offers were higher than anticipated.
Like it did on the marketing of the Marin properties for sale, Equity Office through a spokesman declined to comment on plans to sell the Santa Rosa properties.
Equity Office reportedly also is trying to sell other Bay Area properties, including a quarter stake in the 343,000-square-foot Treat Towers office complex in Walnut Creek and 16 office and research-and-development buildings with 900,000 square feet in Silicon Valley.
As construction progresses toward July 2013 completion of the first part of the 380,000 square feet of retail and commercial space at the East Washington Place regional shopping center at the southwest intersection of East Washington Street and Highway 101, developer Regency Centers has signed a number of shop and junior-anchor leases. Target Corp. earlier this year purchased 10 acres for its 140,000-square-foot anchor store there.
New larger retailers to the North Bay will be Pittsburgh-based Dick’s Sporting Goods, leasing 50,000 square feet, Phoenix-based grocer Sprouts Farmers Market in 25,000 square feet and Illinois-based Ulta Beauty in 10,000 square feet. Sprouts currently has five Bay Area stores and has been exploring a location in Santa Rosa.
TJ Maxx, which has a store in Santa Rosa, plans to put a 46,000-square-foot Homegoods store in the mall.
Santa Rosa-based Sift Cupcake & Dessert Bar leased 1,000 square feet of shop space in the mall. Other shop space is committed for St. Louis-based Panera Bread Co. in 4,200 square feet, Subway in 1,300 square feet and Sports Clips in 1,200 square feet.
Terranomics Retail Services brokered the deals for Regency Centers.
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