Innovatus Capital Partners Buys San Francisco Asset

4040 Civic Center Drive. Image courtesy of Innovatus Capital Partners

Innovatus Capital Partners LLC has acquired 4040 Civic Center Drive, a five-story Class A office building in San Rafael, Calif., from Ellis Partners. In October 2014, Ellis-led Mach II 4040 LLC acquired the property from Los Angeles-based real estate investment trust Kilroy Realty LP for $34.9 million. A year earlier, the building had earned BOMA 360 certification for its excellence in operations, security and sustainability.

The 135,000-square-foot property boasts LEED Platinum certification and features a café, high-quality interior finishes, flexible floorplates and plenty of onsite parking. The building is situated right near Highway 101, close to Northgate Shopping Center, a regional mall within easy walking distance.

The property also provides convenient transportation access thanks to the nearby Sonoma Marin Area Rail Transit Civic Center station. The 70-mile rail system is getting an extension that will connect the rail line to the ferry terminal at Larkspur Landing in late 2019, making it easier for people in the area to commute to San Francisco.

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LPC West, the West Coast arm of Lincoln Property Co., will manage the property going forward. This is the sixth property that LPC West has served in that capacity for Innovatus.

Strong demand in North Marin

A recent report by Newmark Knight Frank has revealed that North Marin is heavily in demand by investors, something that mirrors what happened in the area about 4 to 5 years ago, when 37 percent of the Class A office properties in the area changed hands. Over the last year, several of those buildings have found new ownership again. For instance, 75–88 Rowland Way in Novato sold for $24.9 million in 2015 and last year commanded $36.5 million in another trade.

Cushman & Wakefield’s Steven Hermann and Adam Lasoff represented the seller in the 4040 Civic Center Drive sale. Upon closing, the property was 90 percent leased to a tenant roster that included Pasha Group, Vionic Group, Regus and the General Services Administration.

In March, Innovatus Capital Partners acquired Vantage Place, a 165,656-square-foot Class B office building in Nashville, Tenn., for $26.5 million from The Dilweg Cos.