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Large office deals again dominate Marin County commercial real estate

Top commercial real estate deals

Read about major North Bay lease and sale transactions in the past 18 months.

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.

Hamilton Landing

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.

Belvedere Place

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.

Parc Marin

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

Top commercial real estate deals

Read about major North Bay lease and sale transactions in the past 18 months.

Seller: Ada Marianne Proaps Revocable Inter Vivos Trust

Buyer: Ross Valley Sanitary District

Brokers for seller and buyer: Jerry Suyderhoud, Haden Ongaro, Mark Carrington and Joe McCallum of Newmark Knight Frank

Price: $12.8 million

Transaction: April 2019

Formed in 1899, the sewer district purchased the building for its new headquarters.

3900 Civic Center Drive, San Rafael

Size: 46,766 square feet

Lessor: Union Property Capital

Listing agents: Brian Foster, Trevor Buck of Cushman & Wakefield

Lessee: Autodesk

Procuring agents: Colliers International

Lease commencement: Jan. 1, 2020

The San Rafael-based maker of architectural, engineering, construction and manufacturing design software renewed the lease for one of its key headquarters campus buildings.

Autodesk also renewed its full-building leases of 44,990 square feet at 3950 Civic Center Drive and 115,514 square feet at 111 McInnis Parkway.

Regency Center II

Address: 200 Smith Ranch Road, San Rafael

Size: 40,342 square feet

Lessor: Pell Development

Listing agents: Whitney Strotz of Cushman & Wakefield

Lessee: Fair Isaac Corp. (FICO)

Procuring agents: JLL

Transaction: July 2, 2019

Another major Marin County office tenant, Fair Isaac continued to secure its local foothold, renewing its third-floor lease. The new lease term started in the first quarter of this year.

Pell Plaza

Address: 504 Redwood Blvd., Novato

Size: 40,190 square feet

Lessor: Pell Development

Listing agents: Whitney Strotz, Steven Leonard of Cushman & Wakefield

Lessee: Bank of Marin

Procuring agents: Colliers International

Transaction: Feb. 24, 2020

The growing financial institution renewed its lease for its headquarters offices, with the new term starting in 2021.

Villa Garden Apartments

Address: 214 Villa Garden Drive, Mill Valley

Seller: VGA Mill Valley LLC

Listing agents: Jerry Suyderhoud and Jay Cross of Newmark Knight Frank

Buyer: Trailhead Apartments at Tam Junction LLC

Price: $14.73 million

An affiliate of Los Altos-based Interstate Equities Corp. purchased the 41-unit southern Marin County complex and renamed it Trailhead at Tam Junction. Founded by James and Deborah Boyd in 1981, Interstate invests in multifamily properties in the San Francisco Bay Area, Santa Barbara, the greater Los Angeles area and San Diego.

The company has invested in over 100 properties so far, including Marin Gardens Apartments in San Rafael, a 46-unit complex bought in mid-2015 and sold in early 2018.

Seminary Village Townhomes

Address: 108 & 111 Ross Ave., San Anselmo

Size: 20 units

Seller: Seminary Holdings LP

Listing agent: Scott Gerber of Meridian Commercial

Buyer: Abbey Lane Apartments LLC

Procuring agent: Errol Spiro of Miller & DeSatnik Realty

Price: $13.1 million

Transaction: Nov. 22, 2019

The property was purchased from the San Francisco Theological Seminary and converted from student and faculty housing in 2016-2017. The latest deal came from a North Bay real estate investor looking to diversify holdings out of Texas.

Harborview Apartments

Address: 1601 Bridgeway, Sausalito

Size: 10 units

Transaction: Jan. 31, 2020

Seller: Irene Dietz Trust 2015 and Gyemant Family Trust

Buyers: Magnolia Properties Inc. and Mahogany Properties Inc.

Listing and procuring agent: Scott Gerber of Meridian Commercial

Price: $4.5 million

Under longtime family ownership for over 70 years, this property was sold under an estate settlement to a San Francisco investor.

Jeff Quackenbush (jquackenbush@busjrnl.com, 707-521-4256) covers wine, construction and real estate.

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