By Jon Peterson
The Woodlawn Foundation, a Catholic charitable foundation that operates an office in San Bruno, has placed on the market for sale the 63,800 square-foot, two-building flex property in Vacaville at 3333 Vaca Valley Parkway. No pricing guidance for the property was available at this time.
The seller has hired the Walnut Creek office of CBRE to be the listing agent on the sale, and the people involved in the effort include Greg Smyth and John Salamida, both first vice presidents at the firm. The property manager on the asset is Morgan Hill, Calif.-baed Smith Commercial Management.
It is likely that the property could attract two types of buyers, according to source familiar with the sales efforts and marketing of the asset. One type of buyer would be motivated by a value-add component of the buildings and invest in this opportunity with the goal of increasing cash flow or value of the asset over time. The other type of buyer could be owner or user groups that would occupy part or all of the vacant space in the asset.
The property now has occupancy around 75 percent, according to the marketing materials on the buildings, which translates to roughly 16,000 square feet in the property that is presently vacant. The space that is occupied is leased to tenants that have space from 1,597 square feet to 13,400 square feet. The largest tenant is the Community Housing Opportunities Corporation. This company’s lease expires at the end of April 2025.
The property in Vacaville is considered to be a flex property. It has a mixture of office, industrial and lab space. The project was initially developed in the period between late 1980s to early 1990s, and it covers a total of 5.22 acres. The property is in a strong location with other notable tenants in the area. It sits right across the street from the Kaiser Permanente Vacaville Medical Center, and it is in close proximity to a building that is occupied by Genentech.
3333 Vaca Valley Parkway is a property that will likely attract small tenants, and the size of this project will be a rarity in the future, according to sources familiar with the market. Most of the new development tends to satisfy more traditional industrial requirements and looks to attract tenants that are seeking space of 200,000 square feet or larger. Vacancy for flex space in this city is three percent, so it provides an opportunity for a new owner to own a unique asset.