$16.5M Luxury Apartment Complex in Northern California Listed by Marcus & Millichap

 NOVATO, CA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for Oak Grove Apartments (top left photo) , an 88-unit, 75,666-square foot luxury apartment complex in Novato.

The listing price of $16.5 million represents $187,500 per unit and $218 per square foot.

Brad Pennington, a first vice president investments and a director of the firm’s National Multi Housing Group in San Francisco, is representing the seller.

“Oak Grove Apartments is the premiere multifamily community in this submarket,” comments Pennington. “The current ownership has been in place for the past 10 years.”

 Nestled into a hillside adjacent to a greenbelt, the property is located at 100-145 Cielo Lane in Novato, Marin County’s northernmost city.

Built in 1998, Oak Grove Apartments sits on six separate parcels of land totaling approximately 6.16 acres. The complex consists of eight three-story residential buildings, seven enclosed garage buildings and a freestanding fitness center.

 The buildings are wood-frame construction with stucco and wood exteriors on slab foundations. The roofs are pitched-composition shingle and the property has ample parking for 204 cars.

 The unit mix is comprised of 55 two-bedroom/two-bath apartments ranging from 893 to 1,089 square feet and 33 one-bedroom/one-bath units ranging from 636 to 870 square feet.

The large individual units all have washers and dryers, one-car garages and either a patio or a balcony. Seven storage closets are available for tenants to rent.

 Novato is located approximately 29 miles north of San Francisco and 37 miles northwest of Oakland, Calif.

The Golden Gate Bridge (bottom left photo)  links Marin County to San Francisco and the Richmond-San Rafael Bridge connects the county to the East Bay.

Marin County is bordered to the north by Sonoma County and to the west by the Pacific Ocean.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

$12.35M Northern California Office-Warehouse Listed by Marcus & Millichap

PETALUMA, CA-– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for 715 Southpoint Blvd.,(top left photo)  a two-building 85,490-square foot office and warehouse asset in Petaluma.

The listing price of $12.35 million represents $144 per square foot.

Vincent Schwab, a senior vice president investments and a senior director of the firm’s National Office and Industrial Properties Group in San Francisco, and Kenneth Blomsterberg, (bottom right photo)  a first vice president investments in the Sacramento office, are representing the seller, a local builder.

“The buildings are currently 100 percent occupied by a strong mix of government, international, national and regional tenants with staggered lease expirations,” says Blomsterberg. “Attractive seller financing is available.”

Situated approximately 40 minutes north of San Francisco, the property is located at 715 Southpoint Blvd. in Petaluma near U.S. Highway 101, which links the North Bay to San Francisco and also intersects Interstate 580, which connects the North Bay to the East Bay. The location is close to North McDowell Boulevard, a major four-lane thoroughfare lined with offices, warehouses and retail centers.

Built on 5.9 acres in 1989, 715 Southpoint Boulevard is comprised of 49 percent office space and 51 percent flex space. The steel-frame buildings were constructed by the current owner, whose business occupies a portion of one building. Other tenants include Complete Being Inc., California Department of Motor Vehicles, Dr. Robert Park, FMC Dialysis, Lagunitas Brewing Co., US1COM and Wattgrinder/DY3.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

San Francisco Retail Fundamentals Soften as Tourism Industry Weakens

SAN FRANCISCO, CA— Despite relative stability in overall market conditions last year, widespread layoffs and a drop in tourism activity are expected to be a drag on San Francisco retail fundamentals in 2009, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

In fact, through the first quarter, local hotel room demand fell 12 percent from one year earlier, compared with an 8 percent decline for the nation, reducing visitor spending.

“While investment activity is projected to decline further this year as economic strains weaken operations, San Francisco’s tourism spending and prospects for an eventual turnaround will maintain buyer interest,” says Jeffrey Mishkin, (top right photo) regional manager of the San Francisco office of Marcus & Millichap.

“Cap rates are averaging in the mid-6 percent area and will likely continue to rise in the quarters ahead.”

Following are some of the most significant aspects of the San Francisco Retail Research Report:

· Layoffs are expected to accelerate in San Francisco, led by significant losses in the financial services sector. Employers are forecast to reduce head counts by 40,500 positions, or 4.1 percent, in 2009, following the elimination of 15,700 workers last year.

· Development will slow considerably this year, as builders are scheduled to deliver only 75,000 square feet, down from 2008, when 300,000 square feet was completed.

· As the pullback in consumer spending weighs on retailer demand, vacancy is expected to push up 90 basis points to 4.8 percent in 2009, after a 30 basis point drop last year.

· Weakened occupancy levels will result in further downward pressure on rents this year. Asking rents are forecast to contract 3.2 percent to $33.10 per square foot while effective rents decrease 3.9 percent to $30.42 per square foot.

For a copy of the complete San Francisco Retail Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716