Santa Rosa Office Portfolio Trades

SANTA ROSA, CA—The STG Group, a local privately-held commercial real estate investment company, has completed a $13.4 million acquisition of a portfolio of five office buildings here.

STG purchased the buildings from longtime owner, Sausalito-based Berg Holdings Corp., led by Skip Berg.

Shawn Johnson, Joel Jaman and Danny Jones of Keegan & Coppin/ONCOR International brokered the deal for Berg Holdings, and Jones represented STG. The deal closed late last month.

The buildings contain a total of 169,000 square feet, equating to a price per square foot of approximately $80 for the properties which were about half occupied at the time of sale, with 80,000 square feet available for lease. STG plans upgrades to attract tenants to buildings. STG has solicited designs for revamping the common areas and exteriors of the buildings. The most prominent of the five Santa Rosa office buildings is 100 B Street, in downtown Santa Rosa.

The specific properties included in the purchase are: 130 and 140 Stony Point Road (38,507 sf); 141 and 149 Stony Circle (83,934 sf); 100 B Street (46,839 sf).

The STG Group, which is based in Petaluma, currently has millions of square feet of holdings in Western states. The 29-year old firm is led by principal John Ziegler. With this new addition, STG's overall portfolio has 4.7 million square feet in California, Oregon, Washington and Alaska. In January of this year the company completed the $62 million acquisition of City Square, the landmark mixed-use asset located in downtown Oakland's City Center.

Jim Ballard, managing director of STG, said “This new multi-building portfolio is right in our wheelhouse. We look at partially leased and underperforming assets and how we can run them more efficiently, bringing them up to the performance levels we achieve in the rest of our portfolio."