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EXECUTIVE SUMMARY
SAN FRANCISCO
135,849 SF CLASS A OFFICE | 92% LEASED (76% CREDIT) | LEED
PLATINUM | HIGHWAY 101 & SMART RAIL ADJACENT
SAN RAFAEL , CASAN RAFAEL , CA
40404040SAN RAFAEL , CASAN RAFAEL , CA
40404040
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2 4040 CIVIC CENTER DRIVE // EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
135,849SQUARE FEET
LEEDPLATINUM
92% LEASED(76% CREDIT)
C L A S S AOFFICE BUILDING
Cushman & Wakefield, as exclusive advisor, is pleased to
present the exceptional opportunity to acquire the 100% fee simple
interest in 4040 Civic Center Drive (the “Property”), a five-story,
Class A office building located in San Rafael, CA. The Property is
92% leased, of which 76% is leased to credit tenants including
Vionic, Pasha Group, and GSA.
4040 Civic Center comprises 135,849 square feet of high quality
office space and two adjacent parking garages which, combined with
surface parking, provide 473 parking spaces. The Property’s
elevated position along Highway 101 makes it one of the most
visible buildings in Marin County with excellent access to nearby
freeways, panoramic views, walkability to the Civic Center SMART
rail station, and a wide variety of nearby retail amenities.
The Property’s strong in-place income, combined with staggered
lease expirations, provide an investor the opportunity to acquire
an institutional quality, stabilized asset with a secure cash flow
stream in one of the premier Bay Area office markets. The Property
is also well positioned to benefit from near term rent growth as
market fundamentals continue to strengthen in both Marin County and
the Greater Bay Area.
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EXECUTIVE SUMMARY // 4040 CIVIC CENTER DRIVE 3
Address 4040 Civic Center Drive, San Rafael, CA
Year Built / Renovated 1979 / 1995
Net Rentable Area (RSF) 135,849 (BOMA); 130,828 (In-Place)
Number of Stories 5
Site Area 11.72 Acres
Parking 473 Spaces; 3.5 per 1,000 RSF
Zoning O (Office)
% Leased 92%
Number of Tenants 9
% of Credit Tenants 76%
Weighted Avg. Lease Term Remaining 4.4 Years
Major Tenants Vionic, Pasha Group, GSA, Regus
PROPERTY SUMMARY
OCCUPANCY SUMMARY
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4 4040 CIVIC CENTER DRIVE // EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTSPREEMINENT, BAY AREA INSTITUTIONAL QUALITY
ASSET4040 Civic Center has been meticulously maintained and is
considered one of the top “pride of ownership” office buildings in
San Rafael. Located on “The Hill,” a co-branded signage program
with 4000 and 4020 Civic Center, the Property is highlighted by its
LEED Platinum Certification, high quality interior finishes,
dramatic views, flexible floorplates, and an impressive list of
nearby amenities. As a result, 4040 Civic Center has a proven track
record of outperforming the submarket by attracting and retaining
some of Marin County’s most prominent tenants.
STRONG IN-PLACE INCOME WITH STABILITY & UPSIDE 4040 Civic
Center is currently 92% leased and provides investors with a secure
cash flow stream and contractual rental increases from a number of
prominent and diverse credit tenants including Vionic, Pasha Group,
Jack Daniel’s, and GSA. Immediate upside will result from
repositioning and retenanting the first floor vacancy, a modern
space with high ceilings and potential for creative indoor/outdoor
flow.
$
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EXECUTIVE SUMMARY // 4040 CIVIC CENTER DRIVE 5
UNPARALLELED LOCATION & IDENTITY IN AFFLUENT MARIN
COUNTY4040 Civic Center is located at the heart of Marin County, an
area known for its temperate climate, natural beauty, and affluent
population. Located just north of San Francisco, Marin County is a
direct beneficiary of the region’s economic prosperity which yields
the highest GDP per capita in the US. The county’s residents are
highly educated and possess the highest percentage of advanced
degrees in the State of California. San Rafael is the largest city
in Marin County and serves as its cultural and economic core, with
convenient access to executive housing, a robust amenity base, and
access to a dense labor pool.
“Marin County was ranked as the 5th most affluent county in the
nation.”
– Time.com
EXECUTIVE SUMMARY // 4040 CIVIC CENTER DRIVE 5Ferry
San Rafael
Larkspur
Daly City
Oakland
Berkeley
South San Francisco
Novato
Petaluma
San Francisco
San Rafael
Larkspur
Daly City
Oakland
Berkeley
South SanFrancisco
Novato
Petaluma
San Francisco
SAN RAFAEL , CASAN RAFAEL , CA
40404040
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6 4040 CIVIC CENTER DRIVE // EXECUTIVE SUMMARY
PLENTIFUL AMENITIES & CONVENIENT ACCESS TO TRANSPORTATION
The Property’s elevated position on “The Hill” and immediate
proximity to Highway 101 provide excellent building identity along
the key commuter route in the north San Francisco Bay Area. 4040
Civic Center has convenient access to a wide variety of amenities
including Northgate Mall, which offers more than 60 retail shops
and restaurants. There are additional plans to add high-density
residential at Northgate to create a modern and transit-oriented
“lifestyle center” environment. In addition, the Marin County Civic
Center and Downtown San Rafael are located within minutes of the
Property.
The Property is within a 10-minute walk to the Civic Center
SMART rail station. The SMART line is a brand new, 70-mile rail
system connecting 14 stations currently running from San Rafael to
Sonoma County Airport. The Larkspur extension is due to be
completed in 2019, which will connect SMART commuters to the ferry
terminal serving San Francisco.
6
SAN FRANCISCO
DOWNTOWNSAN RAFAEL
MARIN COUNTYCIVIC CENTER
NORTHGATE
6 4040 CIVIC CENTER DRIVE // EXECUTIVE SUMMARY
0.5 Mi
SAN RAFAEL , CASAN RAFAEL , CA
40404040
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EXECUTIVE SUMMARY // 4040 CIVIC CENTER DRIVE 7
ONECIVIC CENTER DR.
MARIN CIVIC CENTER
STATION
NORTHGATE AMENITIES
OVER RETAIL SHOPS& RESTAURANTS60
EXECUTIVE SUMMARY // 4040 CIVIC CENTER DRIVE 7
THREE
MALL
SAN RAFAEL , CASAN RAFAEL , CA
40404040
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8 4040 CIVIC CENTER DRIVE // EXECUTIVE SUMMARY
ABILITY TO ACCOMMODATE A WIDE RANGE OF USERSThe Property is
zoned as O (Office) by the city of San Rafael. Under this zoning, a
variety of uses are permitted including medical office and limited
retail. The Property’s flexible zoning, generous parking ratio,
range of suite sizes, and proximity to Sutter Urgent Care and
Kaiser Permanente greatly enhance the potential tenant pool for
both traditional office and some medical office uses.
EXTRAORDINARY BARRIERS TO ENTRYIt is extremely difficult to
build in San Rafael. Developable land is scarce and with an
established urban growth boundary in place by the City, the
political environment is challenging to navigate. These factors
combined make it extraordinarily difficult and expensive to build
new in-fill office projects within San Rafael. In fact, within the
past 25 years, only three institutional quality office projects
have been completed in San Rafael, none of which boast the identity
and views provided by 4040 Civic Center.
EXCEPTIONAL OCCUPANCY HISTORY4040 Civic Center benefits from
historical occupancy levels that have outperformed the market given
its location, quality, and appeal to a wide variety of tenants. The
Property has historically maintained strong occupancy levels—95%
over the past four years—with an average tenant tenure of ±8 years,
providing testimony to the tenant’s commitment to the Property.
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EXECUTIVE SUMMARY // 4040 CIVIC CENTER DRIVE 9
21%INCREASE IN MARIN OVERALL
ASKING RENT SINCE 2013
100 BPSDECREASE IN MARIN OVERALL
VACANCY SINCE 2013
0 RSFUNDER CONSTRUCTION
OR PLANNED IN THE NEAR TERM
DISCOUNT TO REPLACEMENT & OTHER BAY AREA SUBMARKETS Situated
in Central Marin County, San Rafael offers an outstanding
alternative for office users seeking quality space at affordable
rates while maintaining a Marin County address. This offering
presents the exceptional opportunity to acquire a well-located high
quality asset well below replacement cost. Asset prices in other
Bay Area submarkets have approached, and in some cases exceeded,
replacement cost values.
With rents in Southern Marin approaching $5.00 psf and rents in
San Francisco above $6.00 psf, the relative value proposition of
Central Marin will continue to fuel tenant demand from these
markets.
COMPELLING MARKET FUNDAMENTALS The tech boom in San Francisco
has steadily spilled over into neighboring Marin County, easing the
commute time for North Bay employees and occupying creative offices
with exceptional views of the bay. Healthy tenant demand, coupled
with no new office construction, is expected to result in continued
lower vacancy trends into 2019. Asking rents are projected to
continue to rise, particularly for well-located properties near
transit/freeways such as 4040 Civic Center.
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CONTACTSINVESTMENT CONTACTS
LEASING & MARKET ADVISORY DEBT & EQUITY ADVISORY
ERIC FOXLic. #01209035ph |
[email protected]
WILL GILKESONLic. #01972336ph |
[email protected]
RYAN VENEZIALic. #01864838ph |
[email protected]
ADAM LASOFFLic. #01891096ph |
[email protected]
SETH SIEGELLic. #01493953ph |
[email protected]
WHITNEY STROTZLic. #01351397 ph |
[email protected]
BRIAN FOSTERLic. #01393059 ph |
[email protected]
STEVEN LEONARDLic. #00909604 ph |
[email protected]
KURT SCHEIDTLic. #01014206 ph |
[email protected]
STEVE HERMANNLic. #01352679ph |
[email protected]
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