In February, there was only 1,200 sf available at Hamilton Landing. A few months back, however, an insurance firm let its lease run dry after being acquired by another company. Another Hamilton landing tenant, Marin IPA, used the availability to downsize from a larger space in Hangar 4, opening up the 12,000-sf space for Activision.
Hamilton Landing is a piece of the former Hamilton Air Force Base that consists of seven historic airplane hangars totaling 400,000 sf, five of which have been renovated and leased as office space, and a development pad at the entrance to the development that will support a 65,000 sf building. Renovation of the two remaining 60,000-sf hangars into more office space may get underway this year if negotiations with a Disney subsidiary result in a signed lease agreement.
Hamilton Landing developer Barker Pacific declined comment on current lease negotiations. A local industry source tells GlobeSt.com that Disney's ImageMovers Digital, a new 3-D computer animation studio, is in discussions with Barker Pacific for the better part of both of the remaining hangars. Barker Pacific has said it would need a prelease agreement in order to begin the renovation of the buildings given the high cost of construction.
The deal would make Disney the largest tenant in the development. The current largest tenant is Take-Two Interactive Software, which leases all of Hangar 10, a 65,000-sf building. Take Two was one of 12 tenants that took down space in the development in 2006. Other tenants include Sony Imageworks and Nihilistic Software, Scene 7, Marin Community Foundation, YMCA and the Marin County Library.
Recent negotiated full-service lease rates at Hamilton Landing have been coming in between $30 and $35 per sf. Haden Ongaro, Brian Eisberg and Mark Carrington of Orion Partners Ltd. have the leasing assignment for Hamilton Landing. Richard Dougherty of Cresa Partners' San Francisco office represented Activision.
Barker Pacific has been waiting a long time for demand to make its way to Hamilton Landing. It acquired the site in 1998 and initially considered razing the hangars before deciding that, although the more expensive option, the hangar's historic nature would be a draw. Nine years and a recession later, the decision has been validated.
"As an investment, it is working well, though it has taken longer than expected," company principal Michael Barker told GlobeSt.com back in February. "We had a slow period but the market has certainly picked up in the last two years and especially in this last year and we see that trend continuing."
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