Mill Building in Berkeley Hits the Market, Will Test Investment Interest

By Jon Peterson

A smaller, but somewhat significant asset in the Berkeley submarket will soon test the market. Maia Holdings LLC has placed on the market for sale the 29,526 square foot Mill Building in Berkeley located at 2001 Addison Street. The pricing guidance on the three-story property was not available at this time.

The seller of the property has hired both Colliers International and Lee & Associates to be the listing agents on the sale. The brokers working on the sale include Matthew Nebel and Michael Donnelly at Colliers and Chris Schofield and Joe McGlynn at Lee & Associates. Colliers did not respond to several phone calls seeking comment for this story.

The current ownership has held title to the property for over 18 months. It had acquired the property for $4.4 million, or just around $150 per square foot, in February 2017, according to public records.

The property does have a value-add component associated with it. A portion of the building is available for lease, around 18 percent of the building is avail for lease. According to the offering document, one space totaling 1,833 square feet is available for lease, as it another totaling 3,430 square feet. Leasing up this part of the building would create additional value in the property. The two largest existing tenants in the property include UC Regents, which takes up 9,634 square feet, and RGN Berkeley I, LLC, which rents 9,662 square feet in the building. Smaller tenants in the building are the Japan Society for the Promotion of Science, a mortgage company and UC Theatre.

The office building was completed in 1985. The property has a total of three stories, and all building systems, including electrical, mechanical, HVAC and elevators have been maintained and updated as needed, according to the offering document. The property has a strong central location, which puts it one block from the Downtown Berkeley BART Station and offers a number of newly constructed parking garages and bus stops within walking distance.

The downtown Berkeley office market remains a very tight market according to data compiled by Colliers International. Through the second quarter of this year, the total vacancy for all types of office buildings in the sub-market was 7.3 percent. The are a total of 39 buildings in this submarket totaling 1.9 million square feet of space.

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