Foreign Investor Pays $31.5MM for Office/R&D Asset in Santa Rosa

By Jon Peterson

Chinese-based Nautilus Global Investment has acquired the two-building 126,585 square foot office/R&D building located at 3850 & 3880 Brickway Boulevard in Santa Rosa for $31.5 million, or just over $248 per square foot, according to sources familiar with the transaction.

The seller of the property was Drawbridge Realty Trust. The company did not respond to several phone calls seeking comment for this story.

Drawbridge was represented in the sale by Cushman & Wakefield, and the two people involved in the sale were Adam Lasoff, a managing director in the company’s San Francisco office, and Eric Fox, an executive managing director in the San Jose office. Others included in the sale included Seth Siegel and Steve Hermann, both out of the company’s San Francisco office. Cushman & Wakefield declined to comment when contacted for this story.

Drawbridge had owned the property since July 2013, when it paid $18.1 million, or $284 per square foot, according to public records. The property was developed in 2001, and it offers parking, attractive landscaping, a cafeteria and upgraded common areas.

3850 Brickway is now considered to be a stabilized property; it is 100 percent occupied by Medtronic Vascular on a triple-net lease. The tenant has been occupying the building since 2005 for its cardiac and vascular groups, as stated on the seller’s website. Medtronic’s lease expires on March 31, 2025, and the rent sits at $1.25 NNN, at the moment, with 3 percent annual increases and one five-year option to renew, according to an offering document.

Medtronic is the world’s largest medical device company with fiscal year 2017 revenues at $29.7 billion. The company employs nearly 1,000 people across Sonoma County and has been in the region for over 25 years. Medtronic is also completing a $2 million improvement project, which includes news labs and specialty testing areas.

The property is located just minutes from downtown Sonoma and walking distance from the Sonoma Airport SMART station. Also, the neighboring companies in the area by the Sonoma County Airport form a little life-science cluster for the region. Along with Medtronic, other companies in the immediate area include NeilMed Pharmaceuticals, Boston Scientific and Claret Medical.

The acquisition by Nautilus Global will represent its second asset that it acquired in the San Francisco Bay Area. This investment firm ventured into the region for the first time last September with its $21.5 million acquisition of 1704 Automation Parkway in San Jose. This is an 84,208 square foot office/R&D property that is 100 percent leased NNN to Quantenna Communications for the next six years.

West Coast Commercial Real Estate News