Overview
Newmark’s Bay Area Private Capital Group is pleased to present the opportunity to acquire the fee-simple interest in 88 Rowland Way, a +/-65,000 square foot medical / office offering located in Novato in highly desirable Marin County California (the “Property”). Currently 55% leased with a weighted average lease term of 4.2 years, the Property offers a stable in-place income base with significant income upside through the lease-up of remaining vacancies at a historically attractive basis.
Built in 1995, the Property is a three-story modern office building with 235 surface parking stalls (3.65/1,000 SF) providing ample parking. Positioned adjacent to Highway 101, 88 Rowland Way is next to the Sutter Health Novato Community Hospital Campus, a 47-bed short-term acute care facility and 170,000+ square foot medical office campus with orthopedic and surgery centers and adjacent medical office buildings. It is also across Rowland Way from MarinHealth/UCSF's largest off campus facility, positioning the asset for future medical tenancies.. The project is next to the expansive Vintage Oaks Shopping Center, featuring a wide variety of dining and shopping options, outstanding nearby amenities that will help attract and retain tenants at the building.
Investment Highlights
Secure Cash Flow – Long-Term Tenancies
88 Rowland is currently 55% leased with 4.2 years of WALT, providing a stable secure base of cash flow from credit tenancy. The Property benefits from a sticky tenant base, including many who have been in occupancy for years.
Hospital Campus Adjacency / Conversion to Medical Uses
The Property is strategically located adjacent to the Sutter Health Novato Community Hospital complex, a 47-bed short-term acute care facility, positioning the building to attract medical tenancy seeking hospital adjacency. Additionally, medical office within 250 yards of a hospital is considered on-campus. On-campus outpatient departments bill under the Hospital Outpatient Prospective Payment System (OPPS) for higher reimbursement rates. 88 Rowland is also directly adjacent to Marin Health's largest off-hospital clinical and administrative facility with pediatric, mental health, imaging and other services.
Superb Marin County Location Adjacent to Rich Amenity Base Adjacency to the Vintage Oaks retail complex, a premier 620,228 RSF open air power center with approximately 60 retail and dining establishments including Costco, Target, Nordstrom Rack, Staples, Ross, Banana Republic, Old Navy and Gap, provides 88 Rowland tenants a wide variety of nearby amenities, including numerous restaurants and cafes. The Property enjoys excellent transportation access and connectivity next to Highway 101.
Future Upside through Lease-Up of Vacant Spaces | Owner-User Potential
There is a clear path to adding value through the lease-up of the existing vacancies. The vacancies are generally in excellent condition, requiring minimal further improvements. Additionally, the Property’s vacancy allows for an owner-user to occupy much of the asset with a path to full occupancy over time.
Recovering Market Fundamentals
The Marin County Medical Office market remains very healthy, enjoying a Total Vacancy Rate below 7%, down over 200 basis points year-over-year. The Marin County office market is faring well, experiencing continued recovering market fundamentals including positive net absorption throughout 2025, lowering the vacancy rate to 19.1%. Asking rents continue to steadily climb, with quality office space adjacent to premium amenities experiencing rents much higher than market averages. Additionally, the overall building stock is being lowered as office-to-residential conversions take over 1.4M square feet out of competition.
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