By Jon Peterson
Oakland-based Madison Park Financial has placed on the market for sale the 8,877 square foot office/retail building located at 329 Primrose Road in Burlingame. The asking price on the sale is $12.3 million, which would yield a per square foot pricing of just over $1,385.
“We think that there will be very strong interest in property. Due to its size, the mostly likely kind of buyer would be either a high-net worth individual or a 1031 Exchange investor,” says Jeffrey Ida, a managing director with Marcus and Millichap. He and Brendan Gallagher are overseeing the sale of the property, and they both work out of the company’s office in San Francisco.
The sale of the property would produce cap rate of sub four percent. This yield would be mainly based on the property’s current net operating income, as stated by sources familiar with the property.
Madison Park has owned the property since March of 2015 when it was acquired for $9.5 million, or just around $1,070 per square foot.
The property is now 100 percent leased to two tenants. The United States Postal Service is the tenant on the bottom floor of the two-story building. It has been an occupancy of its space since 2014 and has a lease that lasts until the end of 2019. It has three options to extend its lease by five years at full market value.
The second floor of the property is occupied by One Medical, a private concierge medical services company. This tenant has a lease that expires in September 2022, but it has other extension options, as well.
329 Primrose has a strong centralized location. Its near many shopping and other amenities. It also is close to public transportation, and it is around two blocks from the Burlingame Caltrain station.