SANTA ROSA -- A San Francisco-based real estate investor and developer recently acquired a five-building, 70,000-square-foot office complex in southwest Santa Rosa that had been part of a large North Bay commercial property portfolio until foreclosure last year.
Presidio Development Partners LLC, acting as Parkpoint M&C Investors LLC, acquired Parkpoint Business Center on Dec. 13 from loan servicer CW Capital, which foreclosed in June.
The just under $4 million purchase price for the 60 percent-occupied office complex, located at the northwest corner of North Dutton and West College avenues, amounted to about a 7.5 percent capitalization rate, according to Presidio partner Cliff Miller. The firm plans to spend about $2 million on landscaping, sidewalks, new signage and other minor minor exterior upgrades as well as interior improvements.
"This is a great office property that has performed well over the years and only recently lost occupancy due to the prior owner’s high cost basis," Mr. Miller said. "We now have the ability lease or sell these small buildings at compelling prices."
Asking prices are in the range of $1.55 to $1.70 a square foot on a full-service basis. A 10,000-square-foot building that has housed shuttered restaurants Mistral and Sassafras is being offered at around $110 a square foot.