Novato office complex sells for $24M

Newport Beach-based real estate investment manager Buchanan Street Partners acquired Rowland Plaza, a 143,444-square-foot, two-building Novato office complex for $24.9 million, or about $174 a square foot.

The June 5 purchase of 75 and 88 Rowland Way by BSP Rowland Plaza, LLC, from BPG-Rock Rowland, LLC, is Buchanan Street’s second in the Bay Area this quarter. The seller was a joint venture of Barker Pacific Group and Rockwood Capital.

“Companies are expanding north due to lack of space and the high cost of locating in central San Francisco,” said Chris Herthel, Buchanan Street senior vice president. “We were attracted to the property because the Novato market is in the path of that expansion. We believe this is one of the best projects in the market, because it offers efficient multitenant floor plates, and accessibility.”

The new owner plans upgrades of the 18-year-old facility inside and out by the middle of next year. The work is set to include a complete lobby renovation and redesign of landscaping.

“The asset has good upside potential, given strong market fundamentals and our strategy to upgrade the project,” Herthel said.

BPG-Rock Rowland purchased Rowland Plaza, including a third building with retail space, in September 2009 for $19.7 million.

Los Angeles-based Barker Pacific also redeveloped former aircraft hangars in Novato into an office park called Hamilton Landing.

In the recent purchase, Grant Lammersen and George Eckard of Cushman & Wakefield represented BPG-Rock Rowland, and Buchanan Street represented itself.