By Jon Peterson
6085 Acquisition Associates LLC has acquired the 65,000 square foot office/flex building in Rohnert Park located at 6085 State Farm Drive for $7.2 million. This asset has roughly an equal mix of office and warehouse space. A company that was involved in this purchase was Fairfield-based McNeill Real Estate Services.
The seller of the property was an entity that is controlled by the Santa Rosa-based Charles Schultz Trust. The listing agent on the sale was Ron Reinking, a managing director with Newmark Knight Frank in its Santa Rosa office.
The sale of the property will produce an 8 percent cash-on-cash return, according to sources that are familiar with the transaction.
The sale of this asset came in at below replacement cost. 6085 State Farm Drive was purchased for around $110 per square foot, while replacement cost for assets of this type in Rohnert Park are around $260 per square foot, as stated by sources that track this information.
At the same time, it is unlikely that this property will receive any new construction competition in the future, as well. Land costs and current rental rates are making development in this area difficult and don’t justify any new construction in the immediate future.
The occupancy of the asset was recently moved up to 95 percent. This was accomplished when a 10,000 square foot lease was signed with Motion Analysis. The five-year lease came in at around the same time the sale of the building closed, and the motion capture technology firm will be moving into its new space in November of 2018. The company had previously occupied space near the Sonoma County Airport in Santa Rosa.