Two Office/Warehouse Buildings in Novato Hit Market with $14MM Asking Price

Novato, Beckett Capital, HL Commercial, Bel Marin Keys

By Jon Peterson

The Charles and Barbara Goodman Trust has placed on the market for sale two office/warehouse buildings in Novato located at 8 and 16 Digital Drive totaling 48,600 square feet. The asking price on the portfolio is $14 million, or roughly $288 per square foot, according to the property’s offering document.

The seller has chosen Beckett Capital and HL Commercial to be the listing agents on the sale. David Noravian, principal and founder of San Francisco-based Beckett Capital, and Robert Knez, founder and CEO of San Rafael-based HL Commercial, are leading the marketing efforts on this sale.

The plan is to sell the two properties to a single buyer, which could lead to further dispositions in the future. 8 Digital Drive is fully leased presently, and it will attract investors looking for an investment with long-term leases committed. 16 Digital Drive is approximately 20 percent occupied, and it may become vacant in the near future. This asset may appeal to owner/occupiers.

The 28,044 square foot leased building 8 Digital is occupied by a total of five tenants, as stated in the property’s offering documents. The largest tenant in this space is Golden Gate Pharmacy Holdings. This company has a lease that covers 10,700 square feet. Its lease does not expire until the end of February of 2027. The other tenants are Haddon Heating & Cooling, Solarcraft Services, Café Cruiser and US Vet Meds. Overall, this property has little rollover for the next 18 months.

16 Digital totals 20,556 square feet and is currently around 20 percent leased. The near-term rollover with this building means that it will be 100 percent available for lease starting in early 2023. Combined, the two buildings are 66 percent occupied. The parking ratio for the full property is 2.5 spaces per 1,000 square feet.

The two properties are considered part of the Bel Marin Keys Park office/warehouse complex in Novato, which is part of Southern Marin County. It is in close proximity to the Bel Marin Keys Industrial Park, which may be expanded by an additional 300,000 square feet in the future. The city council conditionally approved the expansion if projected traffic issues resulting from the planned growth can be resolved, according to published reports. This potential additional development could be of benefit to the two properties that are up for sale.

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