By Jon Peterson
San Francisco-based Ellis Partners has put up for sale the 89,074 square-foot Woodside Office Center in Novato located at 7250 Redwood Boulevard. There is no indication at this time what level of pricing might be achieved with the sale.
The seller has hired the San Francisco office of JLL’s Capital Markets Team to be the listing agent on the proposed sale. The team working on the deal includes Michel Seifer, Rob Hielscher, Erik Hanson and Kristina Wollan. JLL declined to comment for this story.
Ellis has owned the property since July of 2015, when it paid $16.25 million for the asset. The real estate investment firm had purchase the property on behalf of the New York State Common Retirement Fund where Ellis is an emerging manager for the pension fund.
“There was a mutual decision by both of us to sell the asset at this time. I think we felt that we had finished, for the most part, our business plan on the property faster than we had anticipated. Woodside Office Center is one of the nicer and newer office buildings in the Novato office market, and Basin Street Properties had done a really nice job building the property in 2003,” says Jim Ellis, managing principal with Ellis Partners.
The seller has invested more than $415,000 to make improvements to the property since it acquired the building, according to the property’s offering document. The work done to the property included upgrading the common areas, adding EV charging stations and putting in a new conference center.
The property has strong current income as the building is now 88.6 percent leased. This puts the property right in the ballpark for the northern Marin office market vacancy of 11.7 percent, which has come down 730 basis points since 2013.
Woodside Office Center will give the new ownership a chance to add some value to the property in the future. One of the main drivers behind that is the fact that 47 percent of the building will roll over during the next three years, and the current signed leases in the property are around 11 percent below market.
The office building has a strong location with many public amenities nearby. It is steps away from the new Downtown Novato-San Marin SMART light rail station, which is projected to open this year. Several retail destinations can be reached on foot, including Whole Foods, Peete’s Coffee, Chipotle Mexican Grill and Rustic Bakery.