Mega Industrial Flex Portfolio Draws Investor Interest

All properties are 1990s to 2000-era construction.

CONCORD, CA—With an established track record of diverse users including government, media, healthcare, education and insurance entities, a light industrial/ flex portfolio has made its way to the sale column. A joint venture consisting of Birtcher Anderson Realty in conjunction with Merced Capital LP of Minneapolis and Restart Investments of Kentfield, CA, came together to acquire the properties for $63.4 million. The seller was Garaventa Properties , a family-owned venture. “We were pleased to find an investment with this profile in the dynamic Northern California market,” says Robert Anderson , CEO of Birtcher Anderson Realty. “This is a strategic opportunity with great near-term growth potential and fits with the company’s historic strengths of adding value to management-intensive properties. Over our 75-year history we have consistently had a presence in Northern California, and this portfolio provides a critical mass of properties on which to build with future acquisitions.” The three projects totaling 533,700 square feet are located in Concord, Fairfield, CA and Folsom, CA. The 18 buildings are 85% leased to more than 30 tenants. The multi-market portfolio is occupied by a roster of strong, credit-worthy tenants including Comcast, Contra Costa County, Johnson Controls, DirecTV , several state and federal agencies, and Black Diamond Brewery . The buildings are located in three distinct business parks: •        Garaventa Business Park , Sprig Court and Bates Avenue, Concord: 204,706 square feet •        Fairfield Corporate Commons , Campus Lane and Executive Court, Fairfield: 288,133 square feet •        Lake Forest Business Park , Woodmere Road, Blue Ravine Road and Lake Forest Way, Folsom: 100,832 square feet Financing was arranged by Terry Daly and Peter Thompson of Cushman & Wakefield and Marcus Steele of Palmer Capital . Debt financing was provided by Prime Finance of San Francisco. Cushman & Wakefield capital markets professionals Steve Hermann and Robert Gilley headed the disposition assignment with industrial leasing specialists Brooks Pedder and Tony Binswanger . Pedder tells GlobeSt.com: “Investors were betting on the concentric circles of market recovery to reach Fairfield and Folsom, and these properties do have significant value. They are well-positioned with freeway access in good business climates with functional designs including storefront entries.” Pedder and Binswanger, who have served as leasing agents for the properties for more than 25 years, have been retained to continue their roles. Cushman & Wakefield also will assume property management under the new ownership. “With multiple product types and strategic locations, this portfolio provided an outstanding opportunity to acquire a critical mass of high-quality real estate in Northern California,” Hermann said. “The Birtcher Anderson/Merced partnership will be able to take advantage of strong economic and market fundamentals to leverage the existing stability and capitalize on the upside potential.”