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 Contaminated land to
commercial condos
Property: The Vineyard Business Center of San
Rafael 4300-4330 Redwood Blvd., San Rafael CA
Assignment: Orion
Partners was hired to consult with developer regarding best use of
contaminated 10-acre site that was previously occupied by
Fairchild Semiconductor. The decision was made to build
and sell 130,816 square feet of warehouse, light industrial and
office commercial condominiums.
Challenge: To quickly
identify and contact the most suitable buyers for this mixed-use
project with considerable marketing attention paid to the benefits
of ownership versus leasing for potential owner/user buyers.
Results: Orion
Partners brokers Gerry Heermann and Denis Plehn were assigned to
market and sell the units. They sold all 50, in 16
free-standing buildings, for over $30,000,000 to both owner/users
and investors. 80% of these units were sold within the first
year of marketing the development. |
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Larger space with lower tenant costs
Tenant: Take 2 Interactive
Assignment:
To provide Take 2 Interactive with larger facilities while
reducing tenant lease costs.
Challenge:
To structure an economically attractive transaction within a limited
timeframe while providing Take 2 Interactive with a first
class facility in a very competitive leasing environment for high
quality office space at a reduced rent.
Result:
A build to suit lease transaction was negotiated. Hangar 8 at
Hamilton Landing in Novato was selected as tenant’s location and is
now under total renovation for Take 2 Interactive. They will
be occupying the entire 64,000 square foot 2 story office building
within 8 months of lease signature.
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 Lucas
Industrial Light & Magic to new condos
San Rafael Business Center - San Rafael, California
Property:
San Rafael Business Center - 3230-3270 Kerner Boulevard, San Rafael,
California
Assignment:
Secure a buyer for a campus consisting of two office buildings and
three light industrial buildings totaling 71,623 sf.
Challenge:
The property was vacant and had been intensively demised by the
previous tenant, Industrial Light and Magic. A condominium map
had been drawn up for the property and the challenge was to get
potential buyers to value this as a series of condominium deals
rather than a single, vacant, 70,000 asset.
Result:
Secured a buyer for the entire project who was able to justify
valuing the building on the basis of its value as a series of
condos. Generated a selling price of $220 per square foot for light
industrial and $320 per square foot for office. |
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Fast Sale Needed - Mission Accomplished
Property: A Northern California flex office building in
Airport Area
Assignment: Secure
a buyer within a few months to prevent the seller of the property
from going in default on her loan.
Challenge: Building was
75% vacant with the only tenant lease expiring in three months.
Submarket vacancy rate was 20% and most of the submarket leasing
activity involved tenants with space requirements unsuited for
subject property: Before assignment to Orion, property sat on market
for 15 months. Seller was extremely motivated due to health
concerns.
Results: Over a
four month period, a short term renewal was negotiated with the
existing tenant. The property was then repositioned to reflect a
realistic value based on market rents and tenant improvement costs,
highlighting the attributes and benefits to potential owner/users.
The due diligence period was expedited. Opportunity was given to
any potential buyer to do their preliminary due diligence prior to
writing an offer. Property was in escrow within 120 days of
signing the listing. |
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Weak Market - Fast Sale - High Price
Property: 1465 N.McDowell, Petaluma CA
Assignment:
Orion Partners Ltd. was selected as the exclusive agent by the
seller after extensive broker interviews to sell a NNN leased
140,488 sq ft office building occupied by Tellabs, Inc., a
NASDAQ traded company.
Challenge:
Although property and Tenant are solid, the office
market in Petaluma was weak with a high vacancy rate due to the
decline in the telecom industry.
Results: With Orion’s
in-depth knowledge of the local market we were able to overcome the
buyer’s concerns about the short term market weakness. An
extensive local and national market program was instituted.
Nine all cash offers were submitted. A buyer was procured, and
the deal was closed within thirty days at very close to the asking
price. |
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From tear-down to a new Best Buy store
Property: 632 Irwin Street San Rafael
Assignment: Orion
Partners was hired to sublease 7 connecting metal industrial
buildings with freeway frontage on Hwy 101.
Challenge: The
buildings were constructed in the 1950’s and had been used for
manufacturing and lacked appropriate parking for retail.
Industrial uses were not the highest and best use given the freeway
frontage and current zoning. The sublease was for only for
four years and the building needed to be demolished.
Results: After
consulting with Orion Partners Ltd., the sublessor was able to
negotiate options to extend the master lease. Orion Partners
Ltd. was able to secure interest from retailer Best Buy who
was seeking a San Rafael location with freeway frontage. Orion
Partners worked closely with the city of San Rafael to secure
approvals for a 34,000 square feet store with rooftop parking set to
open in December 2006.
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