Rarely do free-standing single tenant buildings come on the market in Danville, especially buildings that may lend to a more “flex” type use. Located at 112 W. Linda Mesa Avenue is 1,600 square foot building that is an excellent little piece of real estate. The building offers a large roll-up door that opens to storage or garage area with a retail storefront.
If you are having a hard time picturing Linda Mesa Avenue, think the side street where Pete’s Brass Rail is located, connecting Hartz and Railroad.
The price of this little beauty: $649,000 or $401 per square foot. A steep price tag for what it is, then again we are talking about a not-so-common commercial building in the core of downtown. An owner/user very well could make sense of this number given rents and inventory of comparable space.
294 Railroad Avenue sits on the corner of Church and Railroad Avenue, adjacent to Lunardi’s Market. The stand alone building is split into two spaces totaling 2,870 square feet. The building does have a small parking lot which is beyond valuable in Danville. Why is parking valuable? if you wanted to build a restaurant, cafe, or bakery the last I was quoted parking impact fee is $7,000 per seat if you cannot provide the appropriate parking… OUCH. Built in 2001, the building is very attractive and has great visibility.
The retail price is: $1,450,000 or $505 per foot. Sticker shock?
522-524 Hartz Avenue is a bit different from the other two properties. This is more of a long-term investment or perhaps a redevelopment play. The building is just under 6,000 square feet with a lot size of .33 acres. As it currently stands, the building is fully leased. The plans that are included in the sale are for a 15,000 square foot building with 9 parking stalls.
Asking Price: $3,300,000 or $553 per square foot.
My interpretation of the pricing is two factors are being put together, the value of the building and the value of the land. If there is a redevelopment play in downtown (besides the Hotel) this would be one of the larger parcels giving it more value. At $553 per foot, plus the cost to build the new building, even if redeveloped the new rents would have to be astronomical to make the economics work.
Now that you have seen the asking prices of the current market inventory, let’s talk what has actually sold.
Most recent was the sale of 100 Railroad, Danville. This building is just over 8,000 square feet and sits behind the Clock Tower and Pete’s Brass Rail. The multi-tenant building isn’t the most attractive and doesn’t fetch the highest rents in town but it gets the job done. The rumor comp is between $280-$295 per square foot.
115-125 Hartz Avenue, Danville located on the corner of Hartz and Railroad across from San Ramon Valley High School traded hands earlier in the year. You might remember this little mult-tenant strip center being a bit rundown. The Danville Redevelopment Agency picked this little piece up for $430 per square foot. Redevelopment agencies aren’t exactly known for being a bargain hunter.
180-190 Hartz sold in September. This building consists of retail and office space and is 10,800 square feet. Built in 2001, the building offers a lot of glass and corner location. This building sold for $356 per square foot. Tenants include Chicago Title and Quizno’s Subs.