Northpoint Office Towers 2 biens | Bureau | À vendre | 16 735 316 € | Salida, CA

Titillating headlines about high vacancy rates in core markets tend to overshadow other stories about emerging opportunities as many workers move to smaller, more affordable markets and companies adapt to work-from-home protocols. Assets in less-obvious markets are thriving on renewed growth driven by demographic changes, and they represent a superb opportunity for astute investors. Northpoint Office Towers is one of those opportunities.
The local office market has a Class A/B+ vacancy rate of 4.4%, no new speculative office construction, and economic barriers to entry. The Subject enjoys good cash flow and significant upside potential, a WALT of 4.01 years, and is realistically priced. The Central Valley office market remains comparatively stable in contrast with some of the larger urban office markets in Northern California.
A lack of new development and on-going population growth have served to limit overall vacancy rates. Top tier assets, like the Subject, are the primary beneficiary of most new requirements and relocations as employers look to create a desirable workplace to attract and retain employees in the region.
CBRE, Inc., as exclusive advisor, is pleased to offer the asset for sale. It is a freeway-facing, two-building office campus totaling ±79,913 rentable sq. ft. This attractive, modern Class A property was constructed in 2008 and is 100% leased to nine tenants. Seven of the nine leases were signed in the throes of the pandemic demonstrating the remarkable attractiveness of the Subject as well as the ongoing desire for many tenants to establish a physical footprint in their community and take advantage of the collaboration, mentoring and associations only possible by in-person work. The largest tenant, San Joaquin Valley College (SJVC) has occupied two floors since 2008.
The asset is priced at $19,267,000 which equates to $241 per sq. ft. The price represents an 8.0% Year 1 capitalization rate on projected NOI as of September 1, 2025, including any scheduled rent increases. A parcel split is being processed by Stanislaus County. Once recorded the buildings will be on their own separate parcels. They will remain part of the Northpoint Office Towers campus and the two parcels will share common area expenses.