Marcus & Millichap Lists Historic Silk Mill in Petaluma, CA for $6.25M

Petaluma’s city council plans to vote on the General Plan in May, which will pave the way for major revitalization efforts in the CBD.

PETALUMA, CA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for The Silk Mill (photo above and at left) at 450 Jefferson St., a 39,317-square foot historic structure in Petaluma.

The listing price of $6.25 million represents $159 per square foot.
John Redwine, an investment specialist in the San Francisco office of Marcus & Millichap, and Vincent Schwab, a senior vice president of investments also in the firm’s San Francisco office, are representing the seller, the Petaluma Preservation Group.

“Designed by famed architects Charles Havens and Brainerd Jones, this Georgian Colonial Revival building, with its classic brick construction and distinct three-story towers, is perfectly suited for an adaptive re-use,” explains Redwine.

“The building is listed on the National Register of Historic Places, which could allow a new investor certain tax benefits for rehabilitation. Due to the explosion of recent development in Petaluma, this property should be particularly attractive to both local and out-of-state developers and users.”

(Other Petaluma structures listed in the National Register of Historic Places are the Opera House at right, built in 1870, and the Carnegie Library, at left, constructed in 1906. However, they are not current Marcus & Millichap listings.)

Originally constructed in 1892, this (Silk Mill) property staked its claim as the only Silk Mill west of the Mississippi. In addition, this structure is believed to be the only building north of San Francisco designed in the Georgian Colonial Revival style, a common motif among the 19th century silk mills of New England.

The city of Petaluma plans to vote next month on a new General Plan, a blueprint for the city’s growth through 2025, demonstrating the city’s commitment to revitalizing its commercial business district.

(At right, the Petaluma skyline shows a summer view from Petaluma looking toward the southwest slop of Sonoma Mountain. Photo by Scott Hess.)

“The sale of the Silk Mill building is a key part of that plan because it would contribute to the transformation of a city block in an area near downtown Petaluma that is slated for major redevelopment,” explains Skip Sommer, general partner of the Petaluma Preservation Group. “There is overwhelming support by the city and its residents to salvage the building.”

According to Marcus & Millichap, the new owner will retain the original shell of the property, in an effort to maintain the historic integrity of Petaluma. As an adaptive re-use property, the asset will be repositioned to meet the demands of the growing Petaluma community. The asset could be redeveloped into an office, retail, hotel, self-storage or light industrial space.

Redwine says its best use would be a mixed-use project, or a luxury residential project with up to 30 lofts and additional townhome units.

The Silk Mill is situated on 1.45 acres, just three blocks from downtown Petaluma, two blocks from the Theatre District and two blocks from the city’s new transit center.

CONTACT:
Stacey Corso, Public Relations Manager, Marcus & Millichap, 2999 Oak Road, Suite 210, Walnut Creek, CA 94597. Office, 925 953 1716. Mobile, 415 672 6460. Fax, 925 953 1710. http://www.marcusmillichap.com/