Marcus & Millichap is pleased to offer the exclusively listed San Joaquin County WorkNet Building. This 51,864 square foot 2-story Office Building is in the City of Stockton, California. It was constructed in 2005 for the tenant and is situated on 2.61 acres of land. It is 95% occupied by AA-bond rated San Joaquin County, which provides the investor the highest likelihood of renewal and long-term capital preservation. The County occupies this property under a 15-Year Lease that provides for an annual increase subject to the Consumer Price Index or three percent, whichever is less.
Priced below replacement cost and currently leased with below market rents, this offering presents an investor significant “value add” potential through leaseup of the 5% vacant space, lease renegotiation and repositioning in future years. While the property is leased to San Joaquin County, it is the primary office for their Employment & Economic Development Department (“EEDD”). Consistent with the directives of the Budget to ensure fiscal responsibility, the EEDD Department recently subleased 2,379 square feet of their building space to the San Joaquin General Hospital for their Emergency Call Center, which is another department within San Joaquin County.
A built-to-suit in 2005, this County facility sits in the heart of the newly formed Stockton’s waterfront district. Stockton’s new City Hall is currently under redevelopment, just down the street. Across McLeod Lake and Stockton’s Waterfront are several local amenities including Stockton Arena, Banner Island Ballpark and University Plaza Waterfront. This property is also surrounded by city owned land expected to attract future mixed-use developments. The Department of Motor Vehicles is across the street, the Waterfront Warehouse retail building is just down the street, and the 200-unit Delta View Apartments are within one block. The asset also provides convenient access to both Highway 4 and Interstate 5, and holds 2-metro bus stops on both sides of the property’s frontage.
The property provides an investor with the opportunity to acquire a well-constructed and maintained office building in the middle of Downtown Stockton, just off the I-5 Freeway. The building is situated close to the Port of Stockton, the third largest port in California, and a major logistics hub for both rail and water transport. This ‘net-net-net’ lease is backed by San Joaquin County’s “AA” credit rating by Standard & Poor’s. Being strategically placed in a prime California market, the property offers the long-term value of a strong municipal tenant and the opportunity to re-lease at market rates should the tenant ever vacate.
Tenant is “AA” Bond Rated San Joaquin County
Tenant Improvements Exceeded $3.3 Million
15-Year ‘Net-Net-Net’ Lease thru Sep-2020
Quick Access to Interstate 5 & Highway 4
Prime Location Near Stockton Channel
Stockton City Hall Moving ½ Block Away
University of the Pacific only Two Miles Away