By Jon Peterson
The San Francisco office of New York Life Real Estate Investors has paid around $6 million to acquire 20 acres of land for the development of an industrial property in Petaluma, according to sources familiar with the transaction.[contextly_sidebar id=”qoiyMDFNLarVSGjgQkVbrOMWTt6Xn1VH”]New York Life declined to comment on the financial terms of the transaction when contacted for this story.
The seller of the property was RNM Cader LLC. The entity is affiliated with RNM Properties, which was led at one point by Robert Minor, a co-founder of Oracle. After Minor’s passing away family members made the decision to dispose of the land. The seller sold the property with the assistance of Trevor Buck, a managing director and principal with Cassidy Turley Commercial Real Estate Services in its San Rafael office.
The development is being called the Cader Commerce Center. It is located at 1466 to 1490 Cader Lane in Petaluma. The project will involve the development of 250,000 square feet of industrial space over four buildings.
New York Life believes there is a strong demand for light industrial space not currently met in Petaluma. “We see that the market demographics are very strong for new development. For tenants looking for space larger than 50,000 square feet, there are very limited options. For light industrial space, current vacancy is around 8 percent. Our development will be the first new industrial development in Petaluma since 2001,” said Brian Seaman, a senior director with New York Life.
The development will have Devcon as the general contractor and McNeill Real Estate Services in conjunction with Project Management Applications of West Sacramento as the overall development manager for the project.
The site had been approved for the development of 355,000 square feet of office space six years ago under the previous owner. New York Life will be getting it re-zoned for light industrial use. The actual ground breaking for the project is projected to be in about four to six months.
New York Life is 100 percent owner of the project. Presently the project is funded exclusively by equity. “There is a good chance that a construction loan will be arranged for the project in the future,” said Seaman. The project is attracting very strong interest from potential tenants. The development could have some tenants signed up before the project starts, and it could begin as a spec development. The project will have an office component of around 5 percent.
New York Life will be investing in Cader Commerce Center on behalf of the McMorgan Northern California Value-Add/Development Fund. This is an investment entity that looks to invest in development projects or existing properties in Northern California that have a value-added component.