Gordon Biersch Brewing Company Facility in San Jose Sold for $10.5MM

Gordon Biersch Brewing Company, San Jose, Marcus & Millichap, Bay Area, Silicon Valley, San Francisco,

Gordon Biersch Brewing Company, San Jose, Marcus & Millichap, Bay Area, Silicon Valley, San Francisco,

SAN JOSE, Calif., Feb. 22, 2017 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, closed the sale of a Gordon Biersch Brewing Company facility, a 129,646-square-foot single-tenant industrial property in San Jose, California. The sale was of a leased real estate investment property and not the ancillary brewery business.

“Due to the structure of the tenant’s lease, which provided multiple short-term extension options spanning 15 years, sourcing traditional financing was a challenge,” says Jeffrey Ida, a Marcus & Millichap associate. “Harnessing the power of Marcus & Millichap’s brokerage platform, we were able to procure an all-cash buyer who recognized the property’s long-term value potential. The sale closed at a sub 4.0 percent capitalization rate, which is rarely achieved by assets with non-S&P-rated tenants.”

“This unique building is the Gordon Biersch Brewing Company’s sole manufacturing, bottling and distribution facility, and it operates 24 hours a day, seven days a week,” says Vincent Schwab, a Marcus & Millichap senior managing director investments. “The primarily automated facility produces 6,000 cases of beer per day, which amounts to over a million bottles of beer per week.”

Ida, Schwab, and John Glass, a Marcus & Millichap executive managing director investments, all based in San Francisco, represented the seller and procured the buyer.

“The transaction offers new ownership a generational redevelopment opportunity with the potential to redevelop/re-tenant the entire parcel at the end of the lease term,” adds Glass.

The facility is located between North 8th Street and North 9th Street at 357 E. Taylor St. in San Jose’s bustling Japantown submarket. It is situated on a 3.14 acre parcel just north of downtown San Jose in the Jackson-Taylor neighborhood.

About Marcus & Millichap (NYSE: MMI)
With over 1,600 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 8,700 transactions in 2015 with a value of approximately $37.8 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com

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