By Jon Peterson
Los Angeles-based Gatehouse Partners and Fairfield-based McNeill Real Estate Services have come together to acquire 3750 Westwind Boulevard in Santa Rosa. The R&D acquisition was made for $9.25 million, according to sources familiar with the sale of the property.
The seller of the property was Tulloch Construction based in Emeryville, and the listing agent on the sale was Palmer Capital. Leading the effort for Palmer was John Seder, a managing director for the firm out of its Sacramento office. The leasing on the property going forward will be overseen by Ron Reinking, a managing director with Newmark in the Santa Rosa office.
The new owners of the property were able to significantly increase the occupancy of the asset during the time it was negotiating the acquisition of the property. They have signed up II-VI Inc., a provider of precision optics for life sciences and optical networks, which agreed to an 11-year leasing term for 44,000 square feet in the property. This means that the property now only has 7,500 square feet available for lease going forward. It also inked a new five-year lease with Westamerica Bank. The other main tenant in the property is Redwood Toxicology, a subsidiary of Abbot Labs.
The property was purchased well below the replacement cost. The purchase came in at $131 per square foot. This compares to current replacement cost for similar assets in the area at around $350 per square foot, according to industry sources.
3750 Westwind has a very strong location from a mass transportation perspective. The R&D property is less than one mile west and within walking distance of the Sonoma County Airport SMART station and a block away from the Sonoma County Airport. The asset was first developed in 2000.
The purchase by McNeill and Gatehouse was its first transaction together. McNeill is known as an investor in industrial assets and other property types on an opportunistic basis through many parts of the San Francisco Bay Area.