Large office deals again dominate Marin County commercial real estate
Institutional-investment-grade commercial properties were a hot item for deal-making in the past 18 months. Here are key deals that have helped set the pace for the market.
Address: Hangar Avenue, Novato
Size: Seven office hangars with 406,000 square feet
Buyer: KW Hamilton Landing LLC
Procuring agents: Haden Ongaro and Mark Carrington of Newmark Knight Frank
Seller: HL Novato LLC
Listing agents: Gerry Rohm, Michael Leggett and David Dokko of JLL Capital Markets.
Price: $115 million
Transaction: November 2019
Former Air Force and Coast Guard hangars were converted to high-technology office space two decades ago. Hamilton Landing was 92.3% occupied at the time of sale. The buyer is an affiliate of Kennedy Wilson of Beverly Hills.
HL Novato, a joint venture of ScanlanKemperBard Companies and Independencia Asset Management, had purchased the property in 2015 for $84 million, the Business Journal reported at the time. It was the second Marin County office property cashout of 2019 for ScanlanKemperBard, after selling Belvedere Place in Mill Valley.
1-2 Belvedere Place, Mill Valley
Size: Two class A office buildings with 103,000 square feet
Seller: AG-SKB Belvedere Owner LP
Buyer: Belvedere Place Property Owner LLC
Brokers for seller and buyer: Haden Ongaro and Mark Carrington of Newmark Knight Frank, and NKF Capital Markets
Sale price: $67.1 million
Transaction: August 2019
The sale price at well over $600 a square foot set a new high mark for Marin County office property pricing, according to Newmark Knight Frank.
One of the parties involved in selling Belvedere Place was Portland, Oregon-based ScanlanKemperBard Companies. The venture had purchased it in late 2016 for about $48 million.
The property was fully leased at the time of sale, with coworking startup WeWork occupying 40% of the space.
The Harbors, Sausalito
Address: 1 and 3 Harbor Drive, Sausalito
Size: Two office buildings with 114,000 square feet
Buyer: MNCVAD II-Seagate Harbors LLC
Seller: One/Three Harbor Investors LLC
Listing agents: Michel Seifer, Rob Hielscher, Kristina Wollan and Erik Hanson of JLL
Price: $53 million
Transaction: July 2019
The buyer was an affiliate of San Rafael-based Seagate Properties and an investment group overseen by Boston-based The Roseview Group. The transaction value works out to about $465 a square foot, and the property was 81% leased at the time of sale.
Seagate’s portfolio includes about 2,500 apartments in the Denver area and roughly 2.5 million square feet of commercial, office, retail and industrial space in the San Francisco Bay and Sacramento areas.
4040 Civic Center Drive, San Rafael
Size: 135,849 square feet
Seller: Ellis Partners
Listing agents: Steve Hermann, Adam Lasoff, Seth Siegel, Ryan Venezia, Eric Fox, Whitney Strotz, Brian Foster, Steven Leonard of Cushman & Wakefield
Buyer: Innovatus Capital Partners
Price: $52.9 million
Transaction: June 18, 2019
New York-based Innovatus Capital Partners purchased the class A office building for $389 per square foot. Tenants include The Pasha Group, Regus Executive Centers and Vionic Group.
Ellis had purchased the building in 2014 for $34.9 million, or $257 per square foot.
1441 Casa Buena Drive, Corte Madera
Seller: 1441 Casa Buena Partners LLC
Buyers: Professional Investors 48 LLC, Peter A. Bagatelos & Anne M. H. Bagatelos Revocable Trust, Michael A. Bagatelos Revocable Trust and 1320 Magnolia LLC
Brokers for seller and buyer: John Garrett and Jon Holmquist of Marcus & Millichap
Transaction: Jan. 31, 2020
Price: $20.5 million
This 32-unit apartment complex housed a beautiful investment, indeed, for the seller, an affiliate of Mill Valley-based The Pratt Company. The sale price this year, equivalent to $640,000 a unit, nearly doubled the price paid in April 2016, which was $10.3 million, or nearly $322,000 a door, according to public records.
Pratt has diversified into self-storage facilities and, most recently, multifamily investments after four decades in shopping center holdings, according to its website.
Marin Business Center
100 Wood Hollow Drive, Novato
Size: 47,728 square feet
Owner: 100 Wood Hollow Drive Owner LLC
Tenant: Birkenstock USA
Brokers for lessor and lessee: Haden Ongaro and Mark Carrington of Newmark Knight Frank
Transaction: First quarter of 2019
In one of the largest Marin County leases in recent years, the U.S. arm of German footwear maker Birkenstock consolidated its offices from the sprawling property alongside Highway 101 at the north end of the city to the office building at the south end.
111 Andersen Drive, San Rafael
Size: 28,053-square-foot office and warehouse building