By Jon Peterson
Oakland-based Madison Park Financial has placed on the market for sale the 59,498 square foot Courtyard Center office/retail property in San Ramon located at 2410 San Ramon Valley Blvd. The asking price on the property is $16.5 million, which would bring the pricing to just over $277 per square foot.
The listing agent on the sale is the San Francisco office of Marcus & Millichap. “This is a property that should attract many types of buyer groups. The property has good current income, and it represents a chance for an investor to buy a property at a higher cap rate than is typically available in the San Francisco Bay Area,” says Jeffrey Ida, a manager director with Marcus & Millichap. Ida, along with Brendan Gallagher and Taylor Flynn, is working on the sale of the property on behalf of the owner.
The cap rate based on the anticipated pricing on the asset is 7.46 percent. This yield is based on the property’s current net operating income. The pro forma cap rate is 7.63 percent. There will be some additional income that could be added to the property in the future, since the building does have rents that are currently below market.
The property has strong operating fundamentals. “The asset is now 97 percent occupied. Many of the tenants have been in the property for at least five years and have current leases with a good amount of time left on them,” said Ida. There is a total of 18 tenants in the building, which includes a combination of retail and office businesses. Some of the tenants are IM=X Pilates & Fitness, Babcock Chiropractic, The Tutoring Center and Panache Academic.
Madison Park is selling this property as part of a concerted effort to focus on multi-family assets for its future investment moves. The property in San Ramon is the company’s last non-multi-family asset that it will be selling.