Jamestown's Equity Office Buy Signals Increased Investor Demand In North Bay
Reflecting growing demand in the North Bay, Jamestown stepped into Marin County for the first time last month, purchasing the Larkspur Landing Office Park in an $82M deal.
Both tenant and, subsequently, investor demand is increasing in the North Bay as caps on development limit supply, Mike Seifer, managing director for JLL Capital Markets Group, tells us. Mike, managing director Rob Hielscher and VP Erik Hanson managed the sale for Equity Office Properties, which attracted offers from more than a dozen investment groups.
The office park, with three buildings totaling nearly 200k SF on nine acres, is near Highway 101 and the Larkspur Landing ferry terminal. It sits across from the Marin County Mart retail center.
Jamestown president Michael Phillips, above, tells us the company sees strength in the North Bay due to its natural beauty and its proximity and growing connectivity to San Francisco. That connection should only increase in the coming years with the Sonoma-Marin Area Rail Transit (SMART) rail project.
That places Larkspur Landing at a regional transportation hub and was one of the driving factors in Jamestown's purchase, he says. Michael tells us Larkspur Landing was a compelling opportunity. Its proximity to the Marin County Mart, an artisanal retail project, creates the opportunity for a unique office environment, he says.
The tenant base at Larkspur Landing is distinct from what the company sees in its San Francisco properties, Michael tells us. The tenants have smaller footprints in Larkspur, are dominated by professional services and a large percentage are locally owned.
Tenant demand in Marin is coming from the growing regional economy with displacement from San Francisco by growing tech companies, JLL's Mike (above) tells us. The difference in price is driving more executives to live and work in Marin—with the deal sweetened by the county's lifestyle offerings, access to a highly educated workforce and good transportation, he says. Mike says life sciences and biotech continue to expand in central Marin and southern Marin has a stable market supported by its closeness to San Francisco.