EXECUTIVE SUMMARY 2277 PINE VIEW
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2277 PINE VIEW PETALUMA , CA Warehouse / Distribution 120,480 SF 100% NNN Leased HQ Building EXECUTIVE SUMMARY 1 Mile to HQ
Transcript of EXECUTIVE SUMMARY 2277 PINE VIEW
2277 PINE VIEWp e t a l u m a , c a
Warehouse / Distribution 120,480 SF100% NNN Leased HQ Building
EXECUTIVE SUMMARY
1 Mile to
HQ
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Cushman & Wakefield, as exclusive advisor, is pleased to offer the opportunity to acquire the 100% fee simple interest in 2277 Pine View Way (the “Property”), a 120,480 square foot warehouse/flex industrial building in Petaluma, CA. The Property is 100% leased on a NNN basis to Workrite Ergonomics (“Workrite”), providing stable in-place cash flow.
The Property is advantageously located along the Highway 101 Corridor, offering convenient access to a variety of local amenities, as well as transportation to major domestic and international markets. Petaluma is one of the North Bay’s most prominent business hubs, and has the lowest unemployment rate in Sonoma County. The city is positioned within a major Bay Area expansion corridor experiencing significant job growth due to rising costs and limited available space in Marin, San Francisco, and Silicon Valley.
BUILDING AREA 120,480 SF
STORIES 1-story w/ Small Mezzanine Office Component
SITE AREA 6.84 Acres (297,916 SF)
YEAR BUILT 1989
PARKING 254 Stalls
OCCUPANCY 100% NNN Leased to Workrite Ergonomics, LLC
LEASE GUARANTOR Knape & Vogt Manufacturing Company
REMAINING LEASE TERM ±9.6 Years
2277 Pine View presents the exciting opportunity to acquire a modern, institutional quality HQ industrial asset below replacement cost with stable, long term income, in a supply-constrained market.
2277 Pine View presents the exciting opportunity to acquire a modern, institutional quality HQ industrial asset below replacement cost with stable, long term income, in a supply-constrained market.
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INVESTMENT HIGHLIGHTS100% NNN Leased HQ Location The Property is 100% leased to Workrite Ergonomics as their corporate headquarters with ±9.6 years of remaining term. Workrite, which designs, manufactures and distributes height-adjustable, ergonomic workstations and office accessories, was founded in 1991. Since then, the company has built a growing base of large corporate clients including Apple, Cisco, Oracle, Chevron, Intel, Aetna Insurance, Salesforce, and The Coca-Cola Co. As of July 2007, Workrite is a subsidiary of Knape & Vogt Manufacturing, a global leader of the industry. Knape & Vogt operates manufacturing/warehouse facilities in Petaluma, CA (the Property); Grand Rapids, MI; Toronto, Canada; and Taipei, Taiwan. Workrite’s lease is fully guaranteed by Knape & Vogt, providing an investor additional security of income.
tenant commitment to BuildingWorkrite has been a tenant at the Property since March 2011, originally occupying approximately 87K square feet. The company recently signed an expansion and lease extension to assume the whole premises until July 2028 and will complete significant TI renovations in the process. The Property serves as Workrite’s headquarters for their operations, selling products through a network of dealers and distributors in the United States and Canada, as well as through its showroom and online store.
Limited Future SupplyDue to factors including a lack of available unprotected land, very little product has been delivered in Petaluma over the past five years—less than 300K square feet of industrial—all of which was preleased. 2277 Pine View Way is expected to trade at a value significantly below replacement cost, ±30%.
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“Employers are responsible for providing a safe and healthful workplace for their workers.” –Occupational Safety and Health Administration
Many of today’s leading employers are prioritizing employee well-being by instituting ergonomics programs that keep employees safe and happy.
EFFICIENCY LESS CHANCE OF INJURY
IMPROVED COMMUNICATION
INCREASED COMFORT
REDUCED COSTS
IMPROVED WORK QUALITY
EMPLOYEE RENTENTION
IMPROVED HEALTH
compelling Ergonomic industry GrowthWhile the notion of ergonomics is not a new one, the industry has seen explosive growth over the past two decades due to the wide adoption of computer technology in the office place. Nowadays, office employees spend countless hours sitting in front of computers, and this prolonged sitting combined with poor posture often leads to health risks and muscoskeletal disorders. More than 40% of workers’ comp claims among office workers come in the form of sprains and strains resulting from lack of proper office ergonomics. The greatest threat to employee productivity is absence due to injury or illness and ergonomic workstations can greatly reduce these threats.
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Downtown Petaluma SMART Station
Downtown Petaluma
Protected Wetlands
Bright Bear Bakery
Petaluma Poultry
Petaluma PoultryProcessor
FedEx Ship CenterThermo Fischer
Scientific
Interline
GCX Corporeation
Revive Kombucha
Kaiser Permanente
Scott Labs
Hydrofarm
UPS
Labcon
Lily Kai Chinese Cuisine
Clover SonomaCowgirl Creamery
Labcon Development Site
County Agricultural Land
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Strategic Location With access to transportation & amenities
The Property is strategically located less than two miles from Highway 101, accessible within five minutes driving via State Route 116, to which the Property is adjacent. Highway 101 is an essential Bay Area and California thoroughfare for distribution logistics and commuters alike.
Sonoma-Marin Area Rail Transit (SMART) is the San Francisco Bay Area’s newest transportation option for travel, offering passenger rail service in Sonoma and Marin counties. SMART’s initial 43 miles of rail corridor includes ten stations, from the Sonoma County Airport to Downtown San Rafael. The Downtown Petaluma SMART station is a mere 2.5 miles from the Property. There is a public bus route with a stop roughly 0.5mi away from the Property that easily connects commuters to the SMART station and Downtown Petaluma.
The heart of Petaluma is its downtown featuring historical architecture and a cherished sense of community. While Downtown Petaluma honors its history, it also provides all the modern conveniences and desired amenities, including Target, Sprouts, Whole Foods, Starbucks, and a host of restaurants and shops.
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Exceptional market Fundamentals Average asking rates for the County’s constrained industrial supply have risen to $1.13 per square foot per month (NNN), representing an impressive 41% increase over the past 24 months. Job growth in Sonoma County has improved markedly since 2007 and unemployment is now at 3.0% - the fifth lowest county in California. With significant job growth, an improving local economy, and compelling rent discount compared to Marin County—Petaluma, and, specifically the Property, are well positioned to take advantage of this ongoing recovery.
Sonoma Q3’18 industrial Snapshot
24.1MSF BUILDING BASE
$1.13AVG. ASKING RATE
3.5%VACANCY
332KSF NET ABSORPTION
SINCE Q3’17
2277 PINE VIEWp e t a l u m a , c a
iNVEStmENt cONtactS
cuSHmaN & WaKEFiELD’S NatiONaL iNDuStriaL aDViSOry GrOuP
DEBt & EQuity aDViSOry
marKEt aDViSOry
STEVE HERMANNLic. #01352679ph [email protected]
SETH SIEGELLic. #01493953ph [email protected]
TREVOR BUCKLic. #01255462ph [email protected]
TERRY DALYLic. #011330089ph [email protected]
WESTSteve HermannJeff ChiateMike AdeyRick Ellison
CENTRALJames CarpenterMike TenterisAdam Tyler
FLORIDAMike DavisMichael LernerRick Brugge
NORTHEASTGary GabrielGerry BlineburyKyle Schmidt
SOUTHEASTStewart CalhounCasey Masters
SOUTHWESTJud ClementsRobby Rieke
ADAM LASOFFLic. #01891096ph [email protected]
ERIC FOXLic. #01209035ph [email protected]
STEVE LEONARDLic. #00909604ph [email protected]
RYAN VENEZIALic. #01864838ph [email protected]
