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.