By Jon Peterson
Lathrop Business Park LLC, a private investment entity associated with the Stockton-based Klein family, has placed on the market for sale the Lathrop Business Park office complex in Lathrop, Calif. The offering price on the property is $18.6. million, or around $140 per square foot, as stated in the property’s offering document.
The seller has awarded the sales listing to CBRE’s office in Sacramento. One person involved in the transaction is Randy Getz, an executive vice president with the company.
The office building is located at 16916-17000 South Harlan Road. The asset holds a major position in the office market in Lathrop. It represents roughly 80 percent of the city’s total office inventory. Should the price point be reached, the asset would be purchased at a going-in cap rate of 7.32 percent based on the property’s current net operating income.
The property has a current occupancy of 87 percent, as stated in the asset’s offering document. Around 90 percent of the property’s current tenants have net leases, and all of the tenants are current on rent and CAM reimbursements despite the pandemic restrictions.
The largest tenant in the property is Performant Corporation. This company has been a tenant in the property since 1997. Its current lease end in December of this year, and the company has one five-year extension option on its space.
Two of the other major spaces in the property have leases that will keep them inside the building for some time. One of these is the Kaiser Foundation with a 26,000 square feet lease that runs through April 2028. The tenant is till completing its tenant improvements. The other is Crosslink Professional, a tax preparation software firm that has a lease for 16,210 square feet that expires in July 2029.
Lathrop Business Park was first developed in 1994. The asset has three one-story buildings that total 132,617 square feet. The total amount of land with the property is 14.28 acres. It also has a large paved parking area.