Basin Street Properties added 113,000 square feet to its North Bay portfolio on Thursday by acquiring two Class-A office buildings in Marin County. The firm bought the properties at 899 and 1050 Northgate Drive in San Rafael, which sit across from each other and total the 113K SF footprint. The deal builds on Basin Street’s existing 102K SF presence at the Shoreline Office Center in Mill Valley, pushing its local occupancy rate to nearly 88 percent.
Value-Add Plans for Marin County Assets
Basin Street plans to invest in upgrades for the five-story property at 1050 Northgate. The firm will fund value-add improvements at the 55K SF building, while the 57K SF site at 899 Northgate already received lobby and common area renovations. Matt White, the company’s chief executive, said the acquisition reflects confidence in the local market despite broader caution from investors and lenders.
“Investors and lenders have been cautious about office, but businesses are leasing space, employees are spending more time together in the workplace, and well-located, high-quality buildings continue to perform,” White said in a statement. “We’re seeing that across our portfolio, and it gives us confidence to continue investing in markets like Marin County.”
Other Bay Area Real Estate Activity
The acquisition comes amid a busy week for Bay Area commercial real estate. Keech Properties of Redwood City purchased the 87-unit Sunsweet Apartments in Morgan Hill for $45 million. Northmarq’s Walnut Creek team, led by Anthony Pappageorge and Zach LeBouf, arranged the sale. In San Francisco, an affiliate of Zurich Alternative Asset Management bought a 78K SF office building at 410 Townsend St. for $47.4 million. Seth Siegel and Ryan Venezia of Cushman & Wakefield represented the buyer.
TruAmerica Multifamily of Los Angeles expanded its Bay Area footprint by acquiring the 200-unit Bridges at San Ramon apartment complex at 309 Springfield Drive. The purchase price was not disclosed. Acacia Capital of San Mateo had bought the complex in 2011 for $40 million. TruAmerica plans to renovate the interiors of 192 units to add to $2.3 million in capital improvements made by the prior owner. Bridge Logistics Properties also closed on a 198K SF facility in Fremont that is fully leased to Quanta Manufacturing and Stericycle. Colliers represented the buyer, with Mike Kendall, Nick Mascheroni, and Greig Lagomarsino handling the transaction.
Spear Street Capital of San Francisco acquired a fully occupied Class-A office building at 400 Castro St. in Mountain View for $121.5 million, or $876 per square foot, from Tishman Speyer. The 138K SF asset was built in 2002. Marcus & Millichap’s Nick Stahler brokered the sale of Mission Villas, a 34-unit assisted living complex at 995 E. Market St. in Daly City. The $10.6 million sale represents a per-unit price of $313,000, though the buyer and seller were not disclosed.
Turnbull Equity of San Ramon sold a 10K SF storage facility at 16325 Barrett Ave. in Morgan Hill to a San Francisco-based investor for $2.6 million. Northpoint Development purchased a nine-building industrial portfolio totaling 534K SF in Benicia for $87.5 million from Link Logistics. The assets include Benicia Commerce Center at 6200-6850 Goodyear Road and multiple buildings at 5301-5341 Industrial Way. The portfolio was fully leased to 19 tenants that have occupied the buildings for an average of 15 years. Suffolk Construction and CO Architects will deliver the 261K SF University of California, San Francisco Mission Bay Education Center and Dental Clinics project through a design-build model.
Upcoming Projects and Development
Rockpoint of Boston and Holland Partner Group of Vancouver formed a joint venture to construct 311 apartments at 3896 Stevens Creek Blvd. in west San Jose. The project is scheduled to be completed in 2029. Waterford Property Co. of Newport Beach will develop a 75-key affordable housing project at 1397 California Circle in Milpitas. Residences will target families with incomes ranging from 30% to 70% of the area median income.
Recent Appointments and Leases
Grant Hyjer joined the Oakland office of Colliers to handle industrial leasing, sales, and investment along the I-880 industrial corridor. Hyjer previously worked at Cushman & Wakefield. Julia Wilk joined Alliance Residential Co. as managing director of its Northern California region. She will oversee origination, financing, and development of multifamily communities across the Bay Area. Wilk joins from Wood Partners, where she managed the full development cycle of nearly 2,500 multifamily units in California.
Drawbridge Realty extended its lease with Microsoft for a 66K SF Class-A office building at 3201 Scott Blvd. in Santa Clara. Jeff Cushman and Walt Stephenson of Cushman & Wakefield represented Drawbridge Realty in lease renewal negotiations, while Alex Lagemann of JLL represented Microsoft.
Nubank leased 32,600 SF of office space at 388 Cambridge Ave. in Palo Alto, bringing occupancy at the mixed-use building to 100% less than one year after its completion. CBRE’s Ryan Adlesh represented Nubank. Newmark’s Mike Courson and Colliers’ Christian Prelle and Clay Jones represented Presidio Bay.
Financing
CBRE arranged $147.5M in financing for a newly completed, 221K SF Class-A office building at 750 Moffett Blvd. in Mountain View. Mike Walker, Brad Zampa and Andy Gross of CBRE arranged financing on behalf of Genesis Commercial Capital and JR-AMC.
