By Meghan Hall
DRA Advisors and Menlo Equities have struck a deal for an asset in Marin County’s Corte Madera. According to public records and a recent market report by Cushman & Wakefield, the two firms solidified a synthetic land lease for $32 million, or about $318 per square foot. DRA Advisors acquired the property’s buildings from Menlo Equities.
The deal for the asset, located at 5725 Paradise Dr., closed on December 13th, according to public records. In all, the property also includes just under six acres of land. The site is developed for commercial uses and is part of the professional and administrative office district.
Menlo Equities originally purchased the six-building, Class A office campus in 2015, according to its website. The property is 99 percent leased to Restoration Hardware, which also occupies an adjacent warehouse building. Combined, the assets serve as the company’s corporate headquarters.
The North Bay office market remains in a state of flux in response to the coronavirus pandemic. According to Cushman & Wakefield, the markets saw a slight decline in leasing volume at the end of the year. The inactivity is largely attributed to large players sitting out of the market; Cushman & Wakefield notes that returning to the office is a “delicate proposition” for many employers.
However, rental rates did increase, ending the year at $2.83 per square foot. However, Marin County, where 5725 Paradise Drive is located, saw a stagnation in rents at the end of the year. The price decrease is a result of lower quality and lower-priced spaces remaining on the market.