LRG Buys Small Marin County Office Building

NOVATO, CA-An investment firm from Larkspur, CA has acquired a small but fully leased office building here from the founder of Marin Bikes. LRG Capital Group paid [Robert] Buckley Real Estate LLC $5.85 million or $228 per sf for a 26,000-sf building anchored by publicly traded McKesson. The deal was brokered by Chris Economou, an office specialist with Marcus & Millichap in San Francisco.

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.