SKB, Angelo Gordon Pocket $67M in Northern California

The partners sold the Belvedere Place office complex in Mill Valley, three years after purchasing the asset for $46.8 million.
Belvedere Place. Image courtesy of ScanlanKemperBard

ScanlanKemperBard and Angelo Gordon have sold Belvedere Place, a 110,300-square-foot office complex encompassing approximately 104,500 rentable square feet in Mill Valley, Calif., just three years after purchasing the Class A asset. The partners sold the two-building property to GTIS Partners and Graham Street Realty in a transaction valued at just over $67 million.

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SKB and Angelo Gordon acquired Belvedere Place from Bently Holdings for roughly $46.8 million in an off-market transaction in late 2016. The partners’ decision to part with the premier asset was prompted by one simple but vital fact. “We took the property from 60 percent leased to 100 percent leased,” Todd Gooding, president at ScanlanKemperBard, told Commercial Property Executive.

Sited 12 miles across the San Francisco Bay from downtown San Francisco, Belvedere Place made its debut in 2000, offering best-in-class office accommodations to the North Bay’s affluent Marin County market. Under the ownership of SKB and Angelo Gordon, the property has benefited from enhancements, including the addition of an amenity package featuring such offerings as a private fitness facility and electric vehicle charging stations.

Eager audience

SKB and Angelo Gordon’s sale of Belvedere Place comes during a highly active seller’s market in Marin County. “The asset was well received, and we had a good depth of buyers,” Gooding said of the disposition process. The price tags on office properties in the area tell the story of high investor demand. SKB and Angelo Gordon bought Belvedere Place for $424 per square foot and just sold it for $608 per square foot. During the second quarter of this year, The Harbors, a two-building property in Sausalito, sold for $468 per square foot after trading for $308 per square foot in 2016. And the building at 4040 Civic Center Drive came under new ownership in a deal valued at approximately $400 per square foot, five years after selling for $267 per square foot. 

As noted in a second quarter report by Cushman & Wakefield, “These transactions are emblematic of the overall market stability seen this cycle and that investors recognize the opportunity to continue adding value. With future development limited by available land and rising construction costs, investors are placing significant value on well-positioned existing assets.” And there has been a notable presence of first-time entrants into the Marin County market. The 4040 Civic Center property was LPC West and Innovatus Capital Partners’ first asset in Marin County, and Baskin Investment Group expanded into the market with the acquisition of the 9,300-square-foot building at 495 Miller Ave. in Mill Valley for $5.6 million, or $600 per square foot.