6-building Sonoma County business park sold for $23 million

A six-building commercial complex in Santa Rosa that has been in the same family of real estate developers since it was built 35 years ago has been sold for $23.5 million.

An affiliate of Pine Creek Properties, started by low-key philanthropist Ken Martin, sold the 152,925-square-foot Pine Creek Business Park property at 3350-3360 Coffey Lane to an affiliate of Richmond-based MKD Investments LP in an off-market deal April 24. The sale price is the equivalent of nearly $154 a square foot.

“With the building’s currently leased at below market rents, this is also an attractive value-add opportunity for the buyer,” said Cushman & Wakefield’s Trevor Buck, who represented buyer MKD Pine Creek Business Park LLC and seller CoffeyPCBP LLC.

Buck said the property had been well-maintained since it was built in 1990.

Tenants in the complex include Vertex Climbing Center, Vinify Wine Services, True Vine wine storage and shipping, Moonlight Brewing Co., several wineries, Pump It Up kids activity center and New Hope Baptist Church.

The Martin family has built a number of apartment and commercial buildings around Sonoma County in the past several decades.

Pat Flanagan and Darla Flanagan started MKD Partners in 2005 to invest in commercial properties throughout California, including The Great Petaluma Mill, Riverwalk Office Building in Napa and Raley’s-anchored Woodcreek Plaza in Fairfield. MKD had purchased The Press Democrat’s former 73,000-square-foot printing plant in Rohnert Park in 2016 then sold off the three parcels in 2018—2021.

In the commercial real estate recovery years after the Great Recession, the Flanagans teamed with Bill Sumski, Jeffrey Leon and David Rawson to form PB&J Acquisitions. Among PB&J’s deals was the sale of 11 south Petaluma buildings to Basin Street Properties in 2015. Sumski later joined MKD.

Jeff Quackenbush covers wine, construction and real estate. Reach him at jquackenbush@busjrnl.com or 707-521-4256.