Exclusive: Concord Building Flies Off Shelf
We just got the scoop on a building sale that could signal a feeding frenzy of trades in the up-and-coming City of Concord. NUCP Fund I just sold the 51k SF building at 1470 Civic Dr for $9M, Beckett Capital principal David Noravian tells us. He repped the buyer, a private investor. Here's David on the roof of his new office at 156 Second. He left his first VP role at CBRE in January to start the boutique firm, which focuses on repositioning and redevelopment deals in the Bay Area.
The property traded at $177/SF at a 6.5% in-place cap rate. In-place rents are $1.53/SF a month, which is approximately 20% below current market rates. Contra Costa County is the main tenant and leases about 35% of the building on a long-term lease. Nearly 40% of the building rolls in the next two years, he says. Forrest Gherlone and Mike Zylstra of Newmark repped the seller, and Robert Newstead of Guardrail Finance arranged acquisition financing on behalf of the buyer.
Concord is starting to cash in on the fact that rents and sales prices are sky high in S.F. Its longtime economic development and housing manager, John Montagh, told Bisnow this year that the city is booming like never before. The cost of Class-A commercial space is as much as four times less than S.F. and nearly 30% less than neighboring Walnut Creek. And John says Concord’s vacancy rate has decreased by nearly 6% since 2012. Concord has the largest available amount of BART-contiguous Class-A commercial real estate in the Bay Area.