[caption id="attachment_77528" align="alignnone" width="500"] Medtronic Vascular has spent $4 million in upgrades to its two-building campus north of Santa Rosa.[/caption]
SANTA ROSA -- A San Francisco-based commercial real estate investor purchased two office buildings fully leased to Medtronic Vascular near Charles M. Schulz--Sonoma County Airport for $18 million.
Drawbridge Brickway, LLC, an affiliate of Drawbridge Realty Trust, LLC, on July 25 purchased the 126,500-square-foot twin two-story buildings on 7.8 acres at 3850 and 3880 Brickway Blvd. from SR Office Properties, LLC. The latter is the entity Basin Street Properties used to repurchase 17 Santa Rosa-area office buildings from Equity Office Properties in October.
Medtronic Vascular, a subsidiary of Minneapolis-based Medtronic, Inc., recently invested $4 million in upgrades to the one of the 12-year-old buildings, pointing to the tenant's long-term commitment to the property, according to Drawbridge.
“Acquiring this premier property with a solid national tenant perfectly fits our acquisition profile,” said Mark Pearson, Drawbridge vice chairman. “With its high quality construction, and a prominent location in a growing market, we saw this property was a good fit for our portfolio.”
Drawbridge looks for "strategically located properties" in the western U.S., preferably those that are completely leased and occupied by major corporations. The company also considers development, redevelopment and conversion opportunities.
The purchase of the Santa Rosa buildings is part of more than $130 million in acquisitions by Drawbridge in the recent months. It's also the first deal to tap a new $150 million revolving credit facility through KeyBank, N.A.
In the fourth quarter of 2012, Drawbridge purchased six properties in Northern and Southern California, three each in Silicon Valley and the San Diego area. Portfolio square footage now tops 2 million square feet and includes properties in Austin, Texas, and Salt Lake City.
Basin Street Properties has resold several buildings in Petaluma repurchased from Equity Office. These buildings were among 44 in Sonoma and Marin counties sold to Equity Office in mid-2005 for $263 million.
On June 19, Basin Street Properties sold 3841 Brickway Blvd. across the street from the Medtronic buildings to R&K - North Bay, LLC. That was a 39,500-square-foot office building mostly occupied by a Veterans Administration clinic and part of a development called Harvest Business Center.
George Eckard, Grant Lammersen and Adam Lasoff of Cushman & Wakefield represented Basin Street Properties in the sale to Drawbridge. Glen Dowling, Sean Heaton and Tony Sarno in the brokerage's San Rafael office assisted that deal and brokered the R&K deal. Mr. Heaton has since transferred to the Portland, Ore., office.