By Jon Peterson
The owners of an industrial property in Sonoma County is offering up for sale or lease the 249,904 square foot Victory Station located at 22801 8th Street, according to sources familiar with the marketing details of the asset. There has been no pricing guidance set on the property at this time.
The current ownership of the property includes McNeill Real Estate Services and Washington Capital and its partners. These two firms had worked on a potential sale of the property earlier this year. At that time, the building was placed under contract for $55 million, but a final sale did not materialize. The listing agent on the current sale or lease for the property is the Walnut Creek office of Cushman & Wakefield. Those working on this transaction include Brooks Pedder, executive managing director, Tony Binswanger, executive director, and Bo Harkins, director.
Washington Capital and McNeill Real Estate were involved in the initial development of the property when it was completed in 2019. The total development cost of the building was $32 million. Around 90 percent of the capital for the development was coming from Washington Capital.
The property owners did have a lease signed with Amazon that had been worked out in May of 2020, according to previous reporting by The Registry. This tenant was planning to take the entire space in the property in a 10-year agreement. Amazon was even going to invest around $15 million of its own capital to get the space ready for the 2020 holiday season. The lease would have been the company’s first lease in Sonoma County. During the discussions of the lease, there were some issues raised by local officials that led to Amazon walking away from leasing the property. The issues, according to a source, pertained to volume of trucks that would occupy the streets, the general congestion it would possibly cause in the city and how this may impact the community in its immediate vicinity.
The asset is now a vacant property. It could be either sold to an investor or to a user. A potential user could be a company that is involved in the wine business given the proximity of the property to the wineries in the region, according to sources familiar with industrial properties in Sonoma County.
The land for Victory Station covers 19 acres, and it was acquired in 2018 for $3.7 million, according to industry sources. The asset also includes additional 3.5 contiguous acres that are available with the building or that could be sold separately. This other land is likely to be converted to trailer parking or approved yard functions.
The asset is located midway between Highways 101 in Sonoma and 29 in Napa. The amount of parking for the project involves 338 auto parking spaces. The site has M-3 zoning, which allows for light manufacturing, R&D, warehousing distribution and retail/office.