Located at 384 Bel Marin Keys, within a larger business park,the two-story building is adjacent to the headquarters for BioMarinPharmaceuticals Inc. In place rents average about $24 per sf gross.The cap rate on the investment is approximately 7% based on currentincome. "It's a market deal," Economou tells GlobeSt.com.

|

The sale is largest office transaction in Marin County thisyear, which speaks more to the credit markets than Marin County.Despite the credit markets, LRG, a group of investors based out ofLarkspur, CA, was reportedly able to obtain high leverage debt inthe sub 7% range due to the high occupancy and high-credit anchortenant, though Economou declined to confirm that information.

|

Economou says LRG went after the deal because looked pastNovato's 22% class A vacancy to find that class B vacancy is in thesingle digits and, moreover, that at this particular 32-buildingbusiness park in southern Novato office vacancy in is in the lowsingle digits.

|

"The Bel Marin Keys area is performing the best," he says. "Itis a mix of flex and R&D buildings built out mostly as officeand clean lab space."

|

LRG bills itself as "a global investment, banking and advisoryboutique" that focuses on public and private companies in thetechnology, life sciences, hospitality, real estate, andentertainment sectors. The firm provides capital via privateequity, commercial loans, and structured debt financing, and guidesand advises clients on mergers and acquisitions, corporate financeadvice and other strategic alternatives.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.