NAPA, CA—LBA Realty has sold two fully-leased industrial properties totaling 239,000 square feet in Napa in a 1031 exchange transaction. The buyer was San Francisco-based Lowenberg Corp.
Cushman & Wakefield‘s Glen Dowling, Chris Neeb and Matt Bracco of the firm’s Marin/North Bay office and George Eckard in San Francisco represented both the buyer and seller.
Constructed in 1997, Bordeaux Centre at 2545-2557 Napa Valley Corporate Dr. is a two-building, one-story warehouse property totaling 150,000 square feet. Vines Business Center at 2511-2515 Napa Valley Corporate Dr. is an eight-year-old, two-building concrete tilt-up flex/industrial complex on seven acres.
The properties are fully leased, including major tenants Ca’Momi Wine, Bergin Glass Impressions, Falcor Winery, Free Flow Wines and Spelletich.
“This was the largest transaction that has taken place in this market this year,” Dowling says. “There was a great deal of interest in these properties, and there has been a tremendous amount of activity on the investment sales front in the region.
With an industrial vacancy of less than 2% in Napa, according to Dowling, “there is strong demand for well-leased industrial product, and there is also a significant amount of 1031 exchange money out there this year.”
The Lowenberg Corp. owns a number of buildings in Napa and Solano counties within its four million-square-foot portfolio. “With this acquisition, Lowenberg is now the largest landlord in the area,” Dowling adds.
“This acquisition is part of our business plan to expand our regional holdings,” explains Susan Lowenberg. “Our strategy has been to dispose of properties not in the Northern California market, as well as older properties in general, and re-invest here. We are starting to see rent growth and substantial value appreciation in Northern California real estate.