Located at 384 Bel Marin Keys, within a larger business park, the two-story building is adjacent to the headquarters for BioMarin Pharmaceuticals Inc. In place rents average about $24 per sf gross. The cap rate on the investment is approximately 7% based on current income. "It's a market deal," Economou tells GlobeSt.com.
The sale is largest office transaction in Marin County this year, which speaks more to the credit markets than Marin County. Despite the credit markets, LRG, a group of investors based out of Larkspur, CA, was reportedly able to obtain high leverage debt in the sub 7% range due to the high occupancy and high-credit anchor tenant, though Economou declined to confirm that information.
Economou says LRG went after the deal because looked past Novato's 22% class A vacancy to find that class B vacancy is in the single digits and, moreover, that at this particular 32-building business park in southern Novato office vacancy in is in the low single digits.
"The Bel Marin Keys area is performing the best," he says. "It is a mix of flex and R&D buildings built out mostly as office and clean lab space."
LRG bills itself as "a global investment, banking and advisory boutique" that focuses on public and private companies in the technology, life sciences, hospitality, real estate, and entertainment sectors. The firm provides capital via private equity, commercial loans, and structured debt financing, and guides and advises clients on mergers and acquisitions, corporate finance advice and other strategic alternatives.
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