Napa Square, one of downtown’s largest — and newest — commercial office buildings, has been listed for sale for an undisclosed price. Experts estimate that it could sell for $45 million to $50 million.
The property, which occupies the frontage along First Street from School to Franklin streets, was completed in 2009 and is owned by Napa Square Associates LLC. It cost an estimated $25 million to build. The center was developed by CDI LLC, which owns a portion of the project.
The timing is right to try to sell, said Harry Price, president of CDI LLC. “It’s a very strong investment market,” he said.
Other commercial buildings in Napa that have recently been listed for sale or sold include the Fagiani’s building, the Food City shopping center, the Napa Register building, the north Copia property and the former Ritz-Carlton-approved property on Silverado Trail.
Price wouldn’t elaborate further on why the ownership group wanted to sell now. However, “We are real estate developers,” he said. “We build buildings and we sell them from time to time. This is part of the business we’re in.”
Napa commercial real estate broker Burt Polson said, based on his estimates, he believes the property could sell in the $45 million range.
“It’s a trophy property,” said Polson. “You are buying it for the income and prestige” of owning a downtown landmark.
Commercial sales activity and prices in Napa and elsewhere have been on the rise.
“Harry is a smart guy. He’s selling at the top of the market,” said Polson. Price could then use his capital to develop another project in Napa, he said.
Jeff Doran, who developed the hotel across from Napa Square, thinks Napa Square could sell somewhere in the neighborhood of $45 million to $50 million.
“The real estate development community is trying to reposition itself as downtown starts to blossom,” said Doran. The Archer hotel is underway, the former Tuscany property was demolished to make room for a new structure and the Borreo building is about to get a new use, he noted.
“A lot of the development community is repositioning themselves to do what they do best.”
Napa Square property offers 65,000 square feet of leasable space with underground parking for 44 cars. It has proven popular with tenants and is 92 percent leased. Tenants include UPS, Charles Schwab, Wells Fargo, pureCru Napa Valley, US Bank, Oenotri and Norman Rose restaurants and Studio M Fine Wines.
The 2014 earthquake damaged the property, causing the west half of the south wall of the building to shift out and east about 10 inches, leaving a visible bulge over an alley. Repairs, which cost “several hundred thousand dollars,” were finished in January, Price said earlier this year.