Dunhill Partners Pays $30MM for Orinda Office/Retail Property

Dunhill Partners, Orinda Theatre Square, San Francisco, Orinda, GLL Real Estate Partners, HFF, Vacaville

By Jon Peterson

Two Dunhill Partners companies have come together to acquire the 90,537 square feet Orinda Theatre Square office/retail property in Orinda for approximately $30 million or $331 per square feet, according to multiple sources aware of the transaction.

The buyers were two brothers who lead their own parts of the Dunhill Partners company. The San Francisco-based Dunhill Partners West is led by Mark Hutchinson, its president, while the Dallas-based Dunhill Partners is led by his brother Bill Hutchinson, its president.

“We think that the property we acquired is not just your typical property. It’s a very unique property for Orinda that would not be able to be duplicated in the immediate area, and it’s a kind of asset that we are looking to acquire all over the San Francisco Bay Area,” said Mark Hutchinson.

The seller of the property was GLL Real Estate Partners. The Munich, Germany-based company is a real estate fund manager. Through a company representative, it declined to comment when contacted for this story. The company has a regional office in San Francisco located at 199 Fremont, according to its Web site.

GLL sold the asset through the San Francisco office of HFF. The listing agent declined to name the buyer, sales price and cap rate.

“This property went through a large marketing sales process. There was a great deal of capital sources interested in the project. This included a mixture of real estate managers with a separate account relationships and high-net worth capital sources,” says Steven Golubchik, a senior managing director with HFF. He worked on the deal along with Nicolas Bicardo, managing director, and Brandon Rogoff, senior real estate analyst.

GLL had really made some major improvements to the property. “They had owned the property for a long time. I think this was somewhere in excess of seven years. They were able to add value to the property by increasing the occupancy in the asset and re-position the ground floor office and retail section of the property,” said Golubchik. The asset is now 98 percent leased to a variety of retail and office tenants. These include Starbucks, Morgan Stanley Smith Barney and Wells Fargo Advisors.

Hutchinson sees that there are many draws to the property. “I think one of the major features in the property is the art-deco style three screen theatre. This brings a lot of people into the property. The asset is also located adjacent to the Orinda BART station. This gives the office workers in the complex very strong access to public transportation, which is important for many businesses,” said Hutchinson.

Hutchinson is looking to expand its investment efforts for retail properties in Northern California. “With the deal in Orinda, we now own retail assets in several markets throughout the region. This would include places like Antioch and the Nut Tree complex in Vacaville. We are hoping to find more properties in the region in the future,” said Hutchinson.

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