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EXECUTIVE SUMMARY
1050 NORTHGATE DRIVES A N R A FA E L , C A
53,569 Square Foot Office/Medical Building
Best Walkable Amenities in Marin County
SMART Station Proximate
THE OFFERINGCushman & Wakefield, as exclusive advisor, is pleased to present the opportunity to acquire 1050 Northgate Drive, a 53,569 square foot six-story office/medical building located in San Rafael, California (the “Property” or “1050 Northgate”). The building is 91% leased to a diverse tenant roster representing a variety of industries including medical services, financial services, real estate, engineering, media, and technology. Tenants range in size from ±250 to ±8,500 square feet with staggered lease expirations through 2026. The fee simple interest in the Property is being offered for sale without an asking price on an all-cash basis.
1050 Northgate is strategically located at the corner of US Highway 101 and Manuel T Freitas Parkway atop a landscaped hillside which provides exceptional visibility at one of the busiest intersections in the heart of San Rafael. This central Marin County location offers an abundance of premium amenities including dining, entertainment, and recreation options, with a neighboring Four Points by Sheraton hotel. Just one quarter mile from the Property, a major mixed-use redevelopment is planned at Northgate Mall which will enhance the retail offerings and residential base. The building features spectacular panoramic hillside views, flexible floor plates, upgraded common areas which were substantially renovated in 2008, and an above-market parking ratio of 4.4 spaces per 1,000 square feet.
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65+ retail, restaurant, and entertainment options
Marin County Civic Center
Lagoon Park
5 MINUTES
15 MINUTES
2 MINUTES
3 MINUTES
MALL
1050 NORTHGATE DRIVE
WALKING DISTANCE TO AMENITIES & SMART SYSTEMThe Property’s amenity rich location provides a wide variety of food, entertainment and recreation options. This offers a distinct competitive advantage over comparable office buildings in Marin County which have an average Walk Score of 52. The recently renovated Northgate Mall, located just steps from the Property, offers more than 60 retail shops and restaurants. There are additional plans to add high density residential to the project to create a modern and transit oriented “life-style center” environment, which are rumored to already be underway. In addition, the Marin County Civic Center, Downtown San Rafael, and several other local amenities are located within minutes of the Property.
The Property is within a 15-minute walk from the Marin Civic Center SMART station. The SMART line is a brand new 70-mile rail system which connects 14 stations running from Cloverdale to Larkspur.
WALK SCOREverywalkable71
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N
1050 NORTHGATE DRIVES A N R A FA E L , C A
PROPERTY SUMMARY
OCCUPANCY SUMMARY
53,569 SQUARE FEET
6 STO
RIE
S *
*Includes ground level (4,286 SF)
±9,000 SF FLOORPLATE
4.4 SPACES PER 1,000 SQUARE FEET*
*includes off-site spaces granted via easement
2.40 ACRE PARCEL
TE
NA
NT
S 8.1 YEARSWEIGHTED AVERAGE TENURE3991%
LEASED
74%
26%MEDICAL OFFICE*
OFFICE
*Current buildout
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AT-A-GLANCEWITHIN A 15-MINUTE WALK
MARIN COUNTY
RETAIL, RESTAURANT, AND ENTERTAINMENT
OPTIONS
MARIN CIVIC CENTER STATION
KAISER PERMANENTE, SAN RAFAEL MEDICAL
CENTER & SUTTER URGENT CARE
APARTMENTS ANDSINGLE FAMILY
HOMES
MARIN COUNTYCIVIC CENTER
MALL
65+
2,000+
257,108TOTAL POPULATION
#5RICHEST COUNTY IN
AMERICA (BY TIME.COM)
$110,485MEDIAN HH INCOME
62.1%HAVE AT LEAST A
BACHELOR’S DEGREE
10%INCREASE IN TOURISM
REVENUE IN 2017
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INVESTMENT HIGHLIGHTSHIGH VISIBILITY LOCATION IN A TRANQUIL ENVIRONMENTCentrally located within San Rafael, 1050 Northgate enjoys exceptional identity at the intersection of Manuel T Freitas Parkway and US Highway 101, one of the most prominent commuter routes in the Bay Area. The Property sits atop a hillside protected by an abundance of lush and groomed landscaping, benefitting from street visibility while also providing tenants a private work environment. In addition, tenants can enjoy recently upgraded outdoor common areas in a peaceful setting.
MALL
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IN-PLACE INCOME WITH LONG TERM STABILITY1050 Northgate is 91% leased to a diverse group of tenants, with no single tenant occupying more than 16% of the total rentable area. Industries represented in the building include medical services, financial services, engineering, media, and technology, among others. The lease expiration schedule is staggered through 2026 with no more than ±13,500 square feet expiring in any year. These attributes, along with an impressive retention rate and lengthy average tenure at the Property, create an incredibly stable investment profile.
EXCEPTIONAL OCCUPANCY HISTORY1050 Northgate has historically maintained strong occupancy levels. Ownership has signed 14 renewals in just the past nine months and more than five other tenants are in discussions to extend their term, proving the tenant roster’s commitment to the Property. With a long history of tenant renewals and consistent new leasing activity, 1050 Northgate should continue to outperform the market for the foreseeable future.
UNPARALLELED MARIN COUNTY LOCATIONThe Property is located at the heart of Marin County, an area known for its temperate climate, natural beauty, and affluence. Located just 18 miles north of San Francisco’s financial district, Marin County is a direct beneficiary of the region’s economic prosperity which yields the highest GDP per capita in the United States. The county’s residents are highly educated with the highest percentage of advanced degrees in the State of California. San Rafael is the largest city in Marin County and serves as its cultural and economic core. This strategic location is ideally positioned to draw from the regional labor pool while also accommodating high-income executives living in some of the Bay Area’s most affluent communities in Marin County.
“Marin County Named California’s Most Educated County” - Huffington Post
36%
18%11%
7%
7%
6%
4%4%
4% 3%
Medical Services
Media
Legal Services
Financial Services
Real Estate
Insurance
Other
Technology
Government
Dental Services
1050 NORTHGATE TENANT MIX
EXECUTIVE SUMMARY 7
ABILITY TO ACCOMMODATE VALUABLE MEDICAL OFFICEThe Property is zoned as O (Office) by the city of San Rafael. Under this zoning, a variety of uses are permitted including medical office and limited retail. The Property’s above-market parking ratio enables the accommodation of 100% medical office use, which presents a rare opportunity for investors to capitalize on the medical office market rent premium. 1050 Northgate is also less than a mile away from both Kaiser Permanente San Rafael Medical Center and Sutter Urgent Care, greatly enhancing the prospective medical office tenant pool. Currently, the Property is 42% leased to tenants in the medical/dental services industries and 26% of the total rentable area is built-out as medical office.
VERSATILE FLOOR PLATESIndividual office suites currently range in size from ±250 to ±5,600 square feet and larger floors can accommodate up to ±10,000 square feet. This variety of suite sizes allows existing tenants the ability to grow within the building and enables the Property to appeal to a wide range of lease requirements. The 4,846 square feet of remaining vacancies can accommodate a range of tenants providing advantageous leasing flexibility. Many suites feature open floor plans and abundant natural light with attractive outlooks, creating a highly desirable tenant environment.
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HIGHWAY 101 PROXIMITY1050 Northgate is located directly off the Highway 101 Manuel T Freitas Parkway exit ramp. Highway 101 runs North-South along the entire West Coast and is one of the most traveled routes in the state, serving as the primary connection for commuters into downtown San Francisco from suburban neighborhoods in the North Bay, SF Peninsula, and Silicon Valley. Additionally, Interstate 580 intersects with Highway 101 just four miles south of the Property and serves as a primary route for commuters traveling from the East Bay.
1050 NORTHGATE DRIVE
SAN FRANCISCO
MALL
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0.80 Miles
Manuel T. Freitas Parkway
N
OFFICE MARKET HIGHLIGHTSHIGHLY INSULATED MARKETMarin County’s high barriers to entry and dynamic tenant mix – including local businesses serving the affluent surrounding population and national corporations – help maintain stable rents and occupancy levels. After the last economic downturn in 2008/2009, the vacancy rate in Marin County returned to its prerecession level by 2011 and has continued to see year-over-year improvements in occupancy levels since that time. In addition, the average asking rent contracted less than 10% peak to trough and has never dropped below $2.30 per square foot per month Full Service (FS) over the past ten years.
SUBMARKET OF CHOICE FOR GROWING INDUSTRIESMarin County’s highly educated workforce attracts a diverse mix of employers including healthcare, technology, financial services, and life-science companies. These high growth sectors are predicted to drive substantial future employment growth with the healthcare sector topping the US Bureau of Labor Statistics’ list of projected jobs added by industry by 2024. San Rafael is the preferred North Bay submarket for corporate users in these high growth sectors evidenced by BioMarin, Kaiser Permanente, Autodesk, Fair Isaac (FICO), Sutter Health and Health Net all maintaining a large presence in the area. BioMarin’s footprint continues to expand in San Rafael, and in addition to its existing ±400,000 square foot downtown corporate campus, the company is in the process of developing a three-acre site as a combination of corporate offices and housing.
SOUGHT-AFTER LOCATION AND COST ALTERNATIVEThe technology sector’s rapid expansion in San Francisco has resulted in escalating rental rates and an influx of tenant migration to neighboring markets such as Marin County which offer reduced commute times, ample parking and cost savings. Just north of San Francisco, Southern Marin County (Sausalito, Tiburon, Mill Valley) has seen a 23% increase in direct asking rents over the past three years to its current average of $4.50 per square foot. Situated in Northern Marin County, San Rafael offers an outstanding alternative for office users seeking well located quality space at affordable rates while maintaining a Marin County address. San Rafael’s average direct asking rent currently stands at $2.84 per square foot, a 37% discount to the Southern Marin average.
1050 NORTHGATE DRIVE10
EXECUTIVE SUMMARY 11
1050 NORTHGATE DRIVES A N R A FA E L , C A
EXECUTIVE SUMMARY
ADAM LASOFF
Lic. #01891096
ph | 415.773.3536
STEVE HERMANN
Lic. #01352679
ph | 415.677.0465
VANESSA GANDHI
Lic: #01752150
ph | 415.568.3426
SETH SIEGEL
Lic. #01493953
ph | 415.773.3580
RYAN VENEZIA
Lic. #01864838
ph | 415.658.3602
KURT SCHEIDT
Lic: #01014206
ph | 415.677.0479
MARK CARRINGTON
Lic. #01219528
ph | 415.526.7650
HADEN ONGARO
Lic. #00916960
ph | 415.526.7649
ERIC FOX
Lic. #01209035
ph | 408.615.3469
INVESTMENT SALES
DEBT & EQUITY ADVISORLEASING MARKET EXPERTS