755 (pictured) -775 South Point Blvd. is a multi-building industrial building that sold for $ 26.45 million.
PETALUMA, CA – The recent $ 26.45 million sale of a 183,000-square-foot, multi-building industrial portfolio demonstrates the several years of discernible streamlining of the North Bay market. These buildings at 755-775 South Point Blvd. were bought by Scannell Properties of Indianapolis. The seller consisted of two private individuals who previously operated Sistema Plastics on site.
Trevor Buck, Steven Leonard and Brian Foster of the Cushman & Wakefield North Bay office represented both buyers and sellers on the transaction. The trio was also commissioned by the buyer to provide leasing services.
“At the time of the sale, both buildings were completely empty, and the portfolio represented the largest commercial lease opportunity in the North Bay. However, since the date of sale, we have quickly completed two major leases on the project and are currently negotiating a third lease, ”said Trevor Buck, Executive Director. "Scannell, who has extensive knowledge and experience of our local North Bay market, remains optimistic about our region, especially on industrial products."
755 South Point is a freestanding two story building with an area of 88,466 square feet and 775 South Point is a freestanding two story building with an area of 94,500 square feet. Both buildings are centrally located in southern Sonoma County and offer freeway views, desirable loading capabilities, clear elevation and parking, and natural light. 755 South Point offers 62,000 square feet of temperature controlled space. The buildings are also near Redwood Business Park, downtown Petaluma, and the SMART Train with direct access to Highway 101.
"The industrial market has been in a tense state for a number of years, and the space options are decreasing even with new builds in the pipeline," Buck told GlobeSt.com. “Scannell Properties has hands-on experience in dealing with properties in need of a capital injection and has been able to reposition the property with tenant improvements and other property upgrades to drive market activity. The South Point buildings offer some of the best storage / distribution space available in Petaluma, Southern Sonoma County. "
Marin County's industrial market remains tight with a vacancy rate of just 1.8% at the end of Q1 2019, according to a report by Cushman & Wakefield. The county had positive net absorption of 11,650 square feet for the quarter. More than 10,000 square meters of this positive net absorption came from the Novato submarket, which accounts for around a third of Marin’s total inventory and currently half of the available space. Nevertheless, the vacancy rate in Novato is only 3.1%.
The industrial availability in Marin has been dominated by smaller blocks with just one plot of land that offers more than 20,000 square meters of contiguous space. Spaces tend to be smaller and more expensive than Sonoma County, so large industrial users tend to move further north, the report said.