4040 Civic Center Dr. is a five-story class-A office building with more than 135,000 square feet.

SAN RAFAEL, CA—Marin remains a key component to the regional stability of the greater Bay Area. Its low 2.7% unemployment rate is a sign of the county's robust economic health. A diverse workforce generates more than $25 billion of annual personal income, while a very healthy business community contributes to the growth of the North Bay region, according to a report by Keegan & Coppin.

To that point, Innovatus Capital Partners LLC recently acquired 4040 Civic Center Dr., a five-story class-A office building encompassing more than 135,000 square feet in Marin County. The asset is located along Highway 101 and half a mile from the Northgate Mall, which includes a Cinemark with 15 screens, nearly 20 food offerings and more than 25 retail stores, and is undergoing renovation.

The property is also a short walk from the Sonoma Marin Area Rail Transit/ SMART Civic Center station. SMART, a 70-mile rail system connecting 14 stations from San Rafael to the Sonoma County Airport, will receive an extension connecting the rail line to the ferry terminal at Larkspur Landing later this year.

“4040 Civic Center Drive is a trophy asset in Marin County,” Bradley Seiden, managing director of Innovatus, tells GlobeSt.com. “With over 135,000 square feet, the property has been well maintained over the years and that has attracted an outstanding tenant roster. It is a best-in-class asset in the area across the street from the area's major mall that is undergoing renovation. Additionally, having access to a SMART station is beneficial for the immediate workforce. Future SMART expansion south in Larkspur is expected to provide greater access to Marin County from San Francisco.”

The building is LEED Platinum-certified and includes a cafe, flexible floorplates and ample onsite parking.

“Marin County has benefited from the office market expansion across the San Francisco Bay Area and demand is expected to continue to grow as supply remains stagnant,” said Seiden. “We are pleased to acquire 4040 Civic, an excellent asset in a highly desirable area, and look forward to working closely with our tenants. The property expands our well-located portfolio of US commercial office properties to eight properties currently valued at approximately $400 million.”

The building is currently more than 90% leased to tenants including Pasha Group, an international logistics and transportation services company; Vionic Group, a global footwear brand; Regus, an office co-working provider; and the General Services Administration.

“Much of Marin County is preserved as open space and developable area for office space is largely accounted for,” Seiden tells GlobeSt.com. “Due to its central location perched over Highway 101 , expanded transit options, and blue-chip employers, Marin County is more desirable for office tenants than ever. While demand for high-quality class-A space in Marin County rises, supply remains the same.”

LPC West, the West Coast arm of national real estate firm Lincoln Property Company, will provide property management and construction management services for the building.  This will be the sixth building LPC West manages for Innovatus.

“We are pleased to provide management for 4040 Civic Center Drive and help to improve operational efficiencies and provide a quality environment for tenants,” said Tim Walling, vice president of LPC West. “The building has been well maintained over the years and we look forward to working with Innovatus to maximize the property's potential.”

Steven Hermann and Adam Lasoff of Cushman & Wakefield represented the seller in the transaction.

Historically this county has been home to companies in the forefront of their industries. Fair Isaac had its beginnings in Marin, as did Lucas Films, Restoration Hardware, Autodesk, Glassdoor, Westamerica Bank and more. Life science and biotech companies, most notably BioMarin, the Buck Institute and Ultagenyx, are currently expanding in the market, attracting talent and creating an atmosphere of innovation. The service industries, retail, tourism and healthcare are booming, resulting in very low vacancies, exceptionally high rents and strong property values.

The Marin commercial real estate market accommodates these broad and diverse industries, with 7.6 million square feet of office space, 6.4 million square feet of industrial space, and 6.4 million square feet of retail space, according to the Keegan & Coppin report. Across all market sectors, vacancy rates consistently remain healthy, and are an indication of Marin's constantly growing and resilient economy. For the investor, Marin County presents a stable, supply-constrained market, with secure sources of income. Marin investment property remains in high demand, commanding high prices commensurate with a well-established market, and reliable, long-term appreciation, says the report.