Raydiance, developer of next-generation laser technology, is considering a major expansion in Petaluma this year.
A site for an expansion pointed to by real estate sources is a vacant 42,000-square-foot former Cisco Systems research-and-development building at 1450 N. McDowell Blvd. The company currently occupies about half that amount of space at 2199 S. McDowell Blvd.
Raydiance Chief Executive Officer Dick Pierce last week wouldn't confirm any plans, calling them "rumor and speculation." He said similar rumors recently had the company expanding into RNM Properties' South McDowell Landing at the southern end of Petaluma.
That's where Camelbak expanded in 2008 and Gap's fast-growing Athleta division last year doubled in size to 40,000 square feet. Enphase Energy was said to be in final negotiations to expand there before leasing 96,000 square feet at Basin Street Properties' Sequoia Center complex elsewhere in the city.
Cornerstone Properties, owner of 1450 N. McDowell, declined to comment.
Raydiance has been growing quickly since it moved to Petaluma from Florida several years ago. The company has received about $50 million in investments, including $3.8 million raised last spring, to commercialize its ultrafast laser pulse technology for ablating -- removing -- material without generating heat. Applications include targeting human cells and highly precise manufacturing.
At the time of the last funding round, the company was projecting it would employ up to 70 employees by the end of 2011.
Santa Barbara-based multifamily property investment firm Nevins Adams Lewbel Schell, or NALS, purchased the 292-unit Rolling Oaks luxury apartment complex at 3700 Lyon Road in Fairfield for $52 million, or about $178,000 a dwelling.
The 15-building complex, built in 2001, has one- to three-bedroom units listed for lease at $1,209 to $1,829 a month. The sale price was the second-largest for a North Bay multifamily property in 2011, following $68 million for 492-unit Enclave at Adobe Creek in Petaluma in February.
NALS owns more than 14,000 units in 12 states, but this is the only California property currently in the portfolio for a reason, according to partner Mike Schell.
"We tend to be yield-oriented," he said. "Historically, California is not a place to get cash flow but to get appreciation. We're very long-term owners, so our interest is in cash flow."
The Rolling Oaks property at 97 percent occupied at the time of sale was available at an investment yield comparable to available properties in states such as Arizona, Colorado and Georgia, where NALS has a number of holdings, according to Mr. Schell. But the barriers to new construction in California can make apartments good investments.
Generally, he's positive about the outlook for multifamily real estate investments.
"The age cohort that generally rents apartment is on a growth tear to 2025, and there is ample demand for apartments and a somewhat reduced supply," he said.
NALS plans to upgrade the property common facilities and areas, such as the leasing office, pool and fitness center, and give the buildings a fresh coat of paint.
William Huberty, Clint Sholl and Malcomb McComb of CBRE Group represented sellers Continental American Properties and Kuwait-based Wafra Investment Advisory Group in the Nov. 30 deal.***
Prima Fluer Botanicals signed a five-year lease for the 14,400-square-foot warehouse and offices at 23 Pimentel Court in Novato. The 21-year-old San Rafael-based contract manufacturer of natural luxury personal care products scouted Marin County for expansion space.