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SAN RAFAEL, CA-Broadreach Capital Partners of Palo Alto has acquired a 93,296-sf office property here for $25.5 million, or slightly less than a 7% cap rate based on in-place rents, according to local sources. Located along Highway 101 in the 3900 block of Civic Center Drive, the property is comprised of two identical three-story buildings originally developed in 1989. The seller was a group of local investors.

Since completion, the buildings have been 100% occupied by Autodesk Inc., a Fortune 1000 software designer known for its computer-assisted design software. Local industry sources tell GlobeSt.com the lease for one of the buildings expires in a year, and the lease for the other expires in five years.

Autodesk Inc. reportedly has exercised its renewal option for the near-term lease expiration but the lease rate and concession package is still being negotiated. The acquisition is “as an opportunity to take advantage of an off-market deal with renewal opportunity in the near term,” a source at Broadreach tells GlobeSt.com.

The lease renewal is an opportunity because demand for space in the greater Bay Area has increased meaningfully over the past 12 to 18 months which, when combined with Marin County’s significant supply-constraints, “points to upward pressure on rental rates in this submarket in the near term,” according to Broadreach senior director Trevor Wilson. Wilson heads the real estate private equity firm’s investment activity in the San Francisco and North Bay markets.

Meridian Commercial Inc. of Larkspur brokered the transaction and has won the leasing assignment. Trevor Buck represented Broadreach while Steven Leonard and Michael Lieberman represented the seller. Colliers International has been retained to provide property management services.

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