By Jon Peterson
While the north Bay Area town of Napa may seem like a sleepy, agricultural neighbor of Silicon Valley, the industrial market in town is anything but that. In one quick swoop, all of the 226,000 square feet of the first phase of the Greenwood Business Park located at the intersection of Airport Blvd. and Delvin Road in Napa has been leased to a single-tenant. Vynapse, LLC dba Pack n’Ship Direct, a subsidiary of Adams Wine Group, has agreed to a 10-year lease to occupy the first phase development in the project.[contextly_sidebar id=”gvitMI0aBTOu0Dt67G2RttSI4VevXHiS”]The tenant does currently occupy 60,000 square feet of space in Napa, so in essence this new lease is considered an expansion. The initial phase of the development will be completed shortly, and Vynapse is expected to move into the building in October of this year.
The wine industry in northern counties of the Bay Area have rebounded quite well from the Great Recession, and demand for industrial space targeted toward this type of customer has been in high demand. “I would think that this space should be leased pretty quickly as it will show the demand from wine tenants looking for distribution space in the Napa area. There is essentially no vacancy in the market right now,” says Brooks Pedder, a senior managing director of DTZ in its Walnut Creek office.
The Walnut Creek and San Rafael offices of DTZ were involved representing both the owner and tenant in the lease transaction. The property is owned by the New York Life Real Estate Investors. Pedder, Tony Binswanger and Trevor Buck worked on the lease for the landlord. Pedder and Scott Bertrand represented the tenant.
The first phase of Greenwood Business Park involves both warehouse and office space. The amount of office space will total around 7,000 square feet in two different locations in the building. This design was intentional, and the first building was divisible so that it could accommodated more than one tenant, if needed.
The second phase of Greenwood Business Park is now under way. It will total around 79,000 square feet when completed. “This part of the project is expected to have anywhere from one to three tenants. We are leasing this now, and it will just depend on what kind of interest we get from tenants,” said Pedder.
The San Francisco office of New York Life was the equity source that acquired the land for the project. When it was acquired in 2013, the project had a development cost in excess of $20 million. The development covers around 19.4 acres, and the construction company working on the project is the Milpitas-based Devcon Construction.
New York Life made its investment in Greenwood Business Park for the McMorgan Northern California Value Add/Development Fund. This investment entity looks to invest in apartments and commercial projects in Northern California. This can be buying existing properties that have a value-add component or placing equity into new development projects.
Vynapse is a full-service, end-to-end fulfillment company focused on the direct-to-consumer wine industry. The company has several service facilities in California. This includes Napa, Windsor, Paso Robles and Buellton. It also has a number of other locations in Illinois, New York, Florida and Oklahoma.