JLL arranged for $45.1M in acquisition financing on behalf of Jamestown from J.P. Morgan for a three-building office campus in central Marin County, the brokerage firm reported this week.
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The 199,046 SF Larkspur Landing Office Park covers 9.4 acres and was put on the market by Equity Office Properties. Jamestown moved to buy the property in January.
The capital markets team from JLL, led by managing director John Manning, EPV Alex Witt and SVP Pavan Malhotra closed the transaction. (Pictured above are Alex, Sarah Bernhisel and John at JLL's San Francisco offices.)
Larkspur presented a challenge from a lending perspective since it contained a lease rollover in 2016 and 2017, according to John. The financing proceeded as JLL demonstrated the impact of the rollover was mitigated by the under-market rents of the existing tenants. Ultimately, the location of the property proved crucial as investors were “drawn to a Class-A office park with a diverse tenant base, strong sponsorship and the asset’s proximity to the future SMART rail and the Larkspur Ferry Terminal,” he said.
JLL investment sales managing directors Michel Seifer and Rob Hielscher closed the sale of the asset on behalf of Equity Office Properties.
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Investment in North Bay has picked up considerably in recent years. Since San Francisco and core Bay Area markets are experiencing record low vacancies, tenants are looking elsewhere for office space. Demand has consequently shifted to outer Bay Area markets such as Marin County.
The desire for shorter transit times has made investment in Marin a more attractive prospect. “Professionals and businesses [seek] to locate their operations near the wealthy enclaves which surround the property,” John said.
J.P. Morgan was in the news as a lender previously this week, providing the 10-year, non-recourse, fixed-rate loan for the acquisition of the 180 Montgomery St office tower.
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