851 Irwin St 29,923 SF 100% Leased Office Building San Rafael, CA 94901 $8,165,000 ($272.87/SF) 6.63% Cap Rate

The Kilpatrick Team of NAI NorCal presents this fully upgraded, 100% leased acquisition opportunity for 851 Irwin Street, a 29,923-square-foot, three-story office building in Downtown San Rafael.

851 Irwin Street has been leased to a solid mix of tenants since its 20% occupancy rate at the outset of 2024, offering a stabilized, cash-flowing asset ready for a turnkey takeover. The strong lease-up strategy has led to a scheduled NOI of $525,611 and leaves ample potential for value-add initiatives. The average monthly rate of leases here is $2.54 per square foot, compared to the San Rafael office submarket average of around $3.37 per square foot. 851 Irwin Street’s diverse roster of thriving tenants will likely be receptive to rental due to the current discounted rents, and the building’s estimated income could increase nearly 60% upon reaching market rates.

A flexible layout and recent capital improvements give 851 Irwin Street sturdy fundamentals for long-term appreciation, minimal capital expenditure costs, and strong future leasing potential. The building’s floor plan comprises small- and mid-sized offices, an optimal range for the San Rafael submarket, where the average office lease size since 2023 is approximately 1,365 square feet. After purchasing the building, the ownership group has made significant refurbishments along with its superb leasing strategy. Infrastructure upgrades include HVAC modernization, elevator improvements, roof restoration, and comprehensive security/safety enhancements. Aesthetic revisions were also made to freshen up the interior flooring, lighting, and common areas, plus a communal kitchen and conference room were added.

Direct Highway 101 exposure and access in the heart of San Rafael are some of the greatest advantages of 851 Irwin Street, attractive facets that are amplified by its rare abundance of on-site parking at 59 spaces. This is an excellent address for any office user with lifestyle-elevating amenities right at the doorstep. The building is within three blocks of essentials like Starbucks, Whole Foods, Trader Joe’s, Petco, and over a dozen restaurants, plus the San Rafael SMART rail station.

Marin County paints an optimistic outlook as its real estate indicators turn positive after the industry-wide pandemic slump, building upon its unrivaled foundation as one of the wealthiest counties nationwide and its proximity to San Francisco. Due to the density of high-income households, the Marin County real estate market comprises mostly residential assets, with commercial inventory and new development sites limited by municipality regulations, underpinning the exclusivity of 851 Irwin Street. This has put upward pressure on office rents, and the county saw a 1.4% growth rate in 2024 after remaining flat the previous two years. Additionally, much of the county’s leasing activity is concentrated along Highway 101, particularly near transit hubs, outlining 851 Irwin Street as a marquee model for success.