Cushman & Wakefield Completes 239,000-Square-Foot Northern California Industrial Sale
NAPA, Cal., Mar. 5, 2014 - Commercial real estate services firm Cushman & Wakefield has completed the sale of two fully-leased industrial properties totaling 239,000 square feet in Napa. In the 1031 exchange transaction, Glen Dowling, Chris Neeb and Matt Bracco of the firm's Marin/North Bay office and George Eckard in San Francisco represented both buyer The Lowenberg Corp. and seller LBA Realty.
Constructed in 1997, Bordeaux Centre at 2545-2557 Napa Valley Corporate Drive is a two-building, one-story warehouse property totaling 150,000 square feet. Vines Business Center at 2511-2515 Napa Valley Corporate Drive is an eight-year-old, two-building concrete tilt-up flex/industrial complex on seven acres. The properties are fully leased, including major tenants Ca'Momi Wine, Bergin Glass Impressions, Falcor Winery, Free Flow Wines and Spelletich.
"This was the largest transaction that has taken place in this market this year," said Dowling. "There was a great deal of interest in these properties, and there has been a tremendous amount of activity on the investment sales front in the region.
"With an industrial vacancy of less than two percent in Napa, there is strong demand for well-leased industrial product, and there is also a significant amount of 1031 exchange money out there this year," he said.
The San Francisco-based Lowenberg Corp. owns a number of buildings in Napa and Solano counties within its four million-square-foot portfolio. "With this acquisition, Lowenberg is now the largest landlord in the area," said Dowling.
"This acquisition is part of our business plan to expand our regional holdings," said Susan Lowenberg. "Our strategy has been to dispose of properties not in the Northern California market, as well as older properties in general, and re-invest here. We are starting to see rent growth and substantial value appreciation in Northern California real estate.
"Glen Dowling's team has been an incredibly helpful partner in helping us meet these objectives," she said. "They have provided us with the guidance, foresight and market insight to achieve our goals."
Cushman & Wakefield's industrial brokerage platform provides global resources and local expertise for tenant and landlord representation, disposition and acquisition services, transaction management, and industrial consulting including labor and demographic analysis. In 2012, in the U.S. alone, this group completed more than 7,000 industrial real estate transactions - totaling 261 million square feet - with an aggregate value in excess of $8.43 billion.