[caption id="attachment_49605" align="alignleft" width="300"] One of the largest and newest buildings in the RNM Properties portfolio was South McDowell Landing, finished in 2007.[/caption]
PETALUMA and ROHNERT PARK -- A local group of real estate investors that purchased three Redwood Business Park buildings in Petaluma last summer is back in a big way, buying 14 Petaluma and Rohnert Park office, industrial and retail structures, which at 842,000 square feet is the largest North Bay sale of commercial space in more than six years.
March 19, 2012
The New York-based U.S. real estate arm of hedge fund Investcorp, which has $11.6 billion in assets under management, commented on its recent joint acquisition of 14 Petaluma office, industrial and retail buildings for about $65 million. [read more]
Napa-based PB&J Acquisitions, LLC, and Investcorp International Inc. of New York on Feb. 17 purchased RNM Properties' entire North Bay portfolio of existing buildings, according to PB&J partner Bill Sumski. The followup purchase by PB&J continues a trend in the past two years with more than 2 million square feet in Petaluma commercial properties that have changed ownership and subsequently enjoyed a surge in leasing.
San Francisco-based RNM Properties, started in 1993 to invest trust funds for family of Oracle Corp. co-founder Robert N. Miner, has been developing and building in south Petaluma business parks for more than two decades and is set to continue to do so. Not included in the sale are 34 acres of south Petaluma business park land, approved for 580,000 square feet of office space in seven buildings.Deal by the numbers
Buyers: PB&J Acquisitions, LLC, and Investcorp International Inc.
Sellers: RNM Lakeville, LLC, and NJL Fountaingrove, LLC
Size: 842,000 square feet
Buildings: 14PetalumaSouth McDowell Landing, 1800 and 2000 S. McDowell Blvd., two office buildings, 144,416 square feet, built 2007Adobe Creek Center, 3100 and 3120 Lakeville Hwy., three retail buildings, 17,238 square feet, built 2005Lakeville Business Park, five office buildings on Corporate Circle, 211,780 square feetCypress Center, 2200 S. McDowell Blvd. Extension, industrial building, 185,841 square feet, built 19971125--1137 N. McDowell Blvd., industrial building, 58,588 square feet, built 19901031, 1035 and 1039 N. McDowell Blvd., three office and research-and-development buildings, 155,090 square feet, built 1999--2000Rohnert Park
5900 State Farm Dr., office building, 69,936 square feet, completed 1983Key tenantsPetalumaAthleta, a division of GapAmy's KitchenAutodeskCalixCamelBakClover Stornetta FarmsDr. Pepper Snapple GroupThermo Fisher ScientificWells Fargo Insurance ServicesRohnert ParkKaiser PermanenteState Compensation Insurance Fund
"We had seen back in June when we made the previous purchase there was some uptick in leasing," Mr. Sumski said. "Cornerstone [Properties] had purchased buildings and there was some activity in those buildings. We were looking at where market rents were and where other markets that could feed Petaluma were going -- particularly, Marin County. The opportunity to acquire buildings at a low cost basis and be able to offer competitive rents and product both in Marin and Sonoma counties was very attractive."
Real estate sources estimate the deal value is more than $65 million, or $77 per square foot. The assessed value of the properties last year was $87.2 million, according to public records. The estimated sale price per square foot is higher than the $40 to $60 range of recent large purchases in Petaluma in the past three years by Cornerstone Properties, Basin Street Properties and even PB&J in its last Petaluma deal.