Hamilton Landing, the 410,000-square-foot office complex at the former Air Force base in Novato, was purchased Wednesday by Portland-based ScanlanKemperBard Companies.
While the sale price wasn’t immediately available, recent sales of comparable office space in Novato have ranged from $175 to $200 a square foot, which would peg this sale at about $82 million. Hamilton Landing is generally recognized as among the most desirable commercial spaces in Novato.
Longtime owner-manager Barker Pacific Group, the seller, sold another Novato commercial property, Rowland Plaza at 88 and 75 Rowland Way, in June for $25 million.
“We are excited to be acquiring Hamilton Landing, both the excess land parcel and all of the seven office buildings,” Todd Gooding, president of ScanlanKemperBard, said in a telephone interview.
“What attracted us to Hamilton Landing was the unique character. It’s not commodity space, it’s anything but, and that’s what the tenants like about it too,” Gooding said.
In the commercial real estate industry, “commodity space” is baseline, generic office space, generally without a lot of character. Hamilton Landing, which consists of seven renovated hangars, has sweeping views, is surrounded by open space and is adjacent to the Bay Trail.
Tenants there now include the Marin Community Foundation; 2K, a video-game publishing label of New York-based Take-Two Interactive Software; Raptor Pharmaceutical; EDG Interior Architecture; and Toys for Bob, creators of the innovative Skylanders video game, owned by Activision-Blizzard Inc.
“It’s a signature property for Marin. It is one of the first creative-style office complexes for the North Bay, with the whole nature of converting an Air Force hangar into creative office spaces,” said Haden Ongaro, executive vice president at Newmark Cornish & Carey in San Rafael.
Ongaro is one of the leasing agents for the building, along with Brian Eisberg, senior managing director, and Mark Carrington, a director at Newmark.
“It’s (Hamilton Landing) one of the top four or five commercial properties in Marin, rivaled only by properties on the water in Sausalito and Mill Valley,” Eisberg said.
The rents at Hamilton Landing are the highest commercial rents in Novato, at $2.50 to $2.85 a square foot, Eisberg said. “Asking rents will certainly be reviewed by the new ownership. They won’t be heading down.”
Asked about the impact of the deal, “Obviously, the dollar significance is there,” said Robert Eyler, head of the Marin Economic Forum. “In the sense of the magnitude of the deal, it’s a reflection of the fact that the market is seeing Marin as a place to do business and a place where the value of property is rising.
“It’s a good sign in terms of other properties in Marin as far as property values rising for commercial buildings.”
While the new owner will take over management of the buildings, the current management team will remain in place, Gooding said. He also said his company has no plans to remodel.
“There is an additional land parcel. We are trying to decide what to do with the excess land. Outside of that, Barker Pacific has done a phenomenal job on the property and kept it in great shape, so we don’t have any material changes,” Gooding said.
“Barker Pacific was a class act and we appreciate their 15-plus years of ownership of Hamilton Landing and the excellent contribution they made to the Hamilton community,” said Marie Hoch, president of the Hamilton Field of Marin Association, an association of Hamilton Phase 1’s residential and commercial properties.
“We are happy to learn that Jonathan Matsoukis will continue to manage Hamilton Landing for the new owner and serve on our board,” Hoch said.
“Michael Barker (the firm’s managing director) and Dick Johnson of Barker Pacific made the critical decision back in 1998 to convert the seven airplane hangars to office use rather than tearing them down,” Hoch said.
Hamilton Field Air Force Base was built in the 1930s. Named for Marin fighting ace Lloyd Andrew Hamilton, the base features palm trees and Spanish-style construction. The site fell into disrepair after the Air Force returned the land to the city of Novato in 1974. Los Angeles-based Barker Pacific transformed the former aircraft hangars into office buildings in the late 1990s.
“We’re excited about continuing the great work that Barker Pacific has done,” Gooding said.
