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Purchase of existing property saves county millions, accelerates move, offers opportunities to generate revenue
SAN RAFAEL, CA., Feb. 27, 2012 – Jones Lang LaSalle has assisted the County of Marin in purchasing a facility located at 1600 Los Gamos Drive in San Rafael, California. The 315,000-square-foot property, known as the Marin Commons Building, will house its mission critical Emergency Operations Center and Sheriff’s Department.
The County of Marin had been wrestling for years to find a location for a new Emergency Operations Facility (EOF), to house the County’s disaster relief capabilities and Sheriff’s department, and had received strategic real estate and financial planning counsel from Jones Lang LaSalle. The county was on the verge of spending $102 million on an 85,000-square-foot, build-to-suit project at a cost of $833 per square foot. But with the crash of the real estate market, the County was approached about 1600 Los Gamos Drive, a largely empty, 315,000 square-foot office. The property was put on the market by a subsidiary of Cigna Corp., which had foreclosed on it in 2009.
The county asked Jones Lang LaSalle to assist in negotiating the terms for the County to purchase the building for $28,425,000, or $90.00 per square foot. The total cost is $82 million, which includes $53 million to build it out, for about $260 per square foot – $20 million less than the county had originally planned to spend. Additionally, the project will be delivered at least twelve months earlier than the previously proposed build-to-suit project.
Harry Schoening, Bob Hunt and Michel Seifer of Jones Lang LaSalle represented the County of Marin in the transaction while Dave Hopkins of Sares Regis represented the owner of 1600 Los Gamos Drive, Cigna Insurance, LLC.
“Municipalities in many parts of the U.S. are taking advantage of a soft real estate market to buy properties rather than renting or building them,” said Bob Hunt, Managing Director, Jones Lang LaSalle. “This project is an excellent example of a highly complex and visible project that truly leveraged the depressed real estate market to the county’s benefit. The result is an outstanding financial and operational real estate transaction, where the mission critical project will be delivered at least 12months sooner than if the build-to-suit process had run its course.”
In addition to the County of Marin saving a significant amount of money on this transaction, the Emergency Operations Center and Sheriff’s Department will be able to move into new space much more quickly. Additionally, the size of the building provided the County with excess space that it can lease to generate revenue or use to house other county related offices in the future.Jones Lang LaSalle’s public sector real estate practice is a premier provider of strategic real estate advisory and transaction services for local, state, national and international public institutions, covering the spectrum of the real estate cycle. From strategy and project management, to transaction and execution, Jones Lang LaSalle brings public sector entities the perspective and expertise to turn a real estate portfolio into a collection of working assets that meet operational and occupancy requirements while generating revenues and reducing costs.
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About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.9 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.
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