Navigating Challenges, Maximizing Opportunities: Transforming a San Rafael Industrial Canal District Property to a Prime Investment
Challenge: The owner partners owned three warehouses on two separate parcels in the industrial canal district of San Rafael, since the 1950’s. The properties had deferred maintenance and obsolete mechanical items. Several tenants were subletting for a profit as their business space needs changed. Rents rates were only 48% of market. The new owners would have to make significant improvements to bring in market lease rates and to earn quality tenants. A true value add opportunity.
Action: We conducted lease audits and a full Cre-SWAP study to determine the potential use of the property and the required investment to reach optimal performance. In order to bring the sellers an equitable sale we illustrated a clear path to profitability to prospective owners. We reached out to investors with a clear and focused presentation on how to best achieve the properties full potential. We enacted our Full Market Exposure program reaching out to both local and regional qualified buyers.
Results: We received strong interest from the investment and owner user communities resulting in several offers, allowing the sellers an opportunity to choose the terms that most worked for their unique circumstances. One parcel was purchased by an investor that will pursue the required development and the second parcel was purchased by an owner user that will benefit from the high traffic, visibility, and location.
Property Description
911 Francisco Boulevard East is a highly visible commercial property currently improved as an automotive dealership. The property features strong frontage along Francisco Boulevard East, excellent exposure to daily traffic, and convenient access to Highway 101. Its location within San Rafael’s industrial and commercial corridor makes it ideally suited for auto-related uses or other service-oriented businesses requiring prominent visibility and accessibility.
Location Description
The property is situated in San Rafael’s Canal Core Industrial district, one of Marin County’s primary commercial corridors. Francisco Boulevard East carries consistent traffic and serves as a direct parallel to Highway 101, providing quick connections throughout Marin and into the greater Bay Area. The surrounding area supports a mix of automotive, industrial, and service businesses, reinforcing this location as a natural hub for dealership and retail operations.
Highlights
- Prime frontage and visibility along Francisco Blvd East
- Excellent access to Highway 101 and central Marin
- Currently occupied by Marin Imports, a luxury auto dealership
- Strong traffic counts in established auto/industrial corridor
- Flexible commercial zoning supportive of auto-related uses
Testimonial: “Ces and Steve gave us clarity in a process that was completely new to us. They helped us every step of the way keeping us informed from the initial property inspections, informing the tenants of the upcoming sale, presenting the property to the investment community, and finally assisting us in negotiations. We recommend Ces and Steve to anyone that is selling or investing in Commercial Real Estate.” – Gaye Lauchenauer and Phyllis Sharrow, Co-Owners and Trustees