Basin Street says it's committed to Petaluma for the long run

<p>Basin Street Properties is committed to Petaluma for the long run, principals say, and to prove that point, they have put their money where their mouths are.</p><!-- Nothing to do. The paragraph has already been output --><p>Last week, the firm purchased the Marina Business Center at 765 Baywood Drive for an undisclosed amount, announcing plans to “clean it, fix it and bring it back to its glory days.” </p><p>“The property is in need of some refurbishment,” said Matt White, the company's president and CEO, “but we want the local tenants to know that ... we have troops on the ground to manage it and maintain it in a way they have come to expect.”</p><p>Basin Street moved its headquarters to Reno earlier this year, leaving a small team in Petaluma but fueling speculation that it was severing ties. In an interview from his Reno office, White said that just isn't true.</p><p>“I could tell people that until I was blue in the face, but nobody believed it,” he said. “Long term, more of our growth will be outside of California and the Bay Area, but that doesn't mean we aren't committed to Sonoma County.”</p><p>White, 41, said he grew up in the family business and loves Petaluma. “It has been good to us, and we have tried hard to leave it with projects the community can be proud of.”</p><p>The firm's decision to relocate was purely economic, he added. “Our business is very difficult, especially in these economic times, and what we need is political predictability. There's not a lot of that in Petaluma.</p><p>“We do business in a lot of other cities in the West that are extremely excited about what we do, places like Boise, Salt Lake, Las Vegas and the Sacramento area. (Those experiences) led us to the realization that there is life outside of Sonoma County.”</p><p>That said, White points to the marina purchase as a demonstration of Basin Street's commitment to investing in Sonoma County and maintaining a strong local presence. </p><p>“From a strategic standpoint, it gives us the three best properties in Petaluma, in the best three submarkets,” he said. “If you want to be in north, central or southern Petaluma, we should be your landlord of choice.”</p><p>The Marina Business Center, about 70 percent occupied, has three Class A buildings with a total of 116,000 square feet of space, in suites from 300 square feet to 10,000 square feet.</p><p>The Marina complex was built over a 10-year period, with the most recent building 10 years old. The buildings are up to 20 years old.</p><p>At the Redwood Business Center, Basin Street owns three Class A buildings with more than 200,000 square feet of office space, adjacent to Club One Fitness Center. Downtown, it has nearly 100,000 square feet of space in Basin Street Landing, Water-front and Theatre Square. </p><p>“All are designed to accommodate small tenants, which are Petaluma's bread and butter in good times and bad,” said White. </p><p>He points to increased leasing activity over the last quarter as a sign that things have stopped getting worse. “People are a bit hesitant to make a move, but they're out there kicking tires and seeing what's available. That's the first step,” he said.</p><p>Some potential tenants are Santa Rosa companies interested in space that is closer to San Francisco and Marin, but White said “a good number are local companies looking to expand or upgrade their images.” Most are interested in 1,000- to 4,000-square-foot spaces.</p><p>Marina Office Park Associates, which developed the marina complex, will continue as joint venture partners. </p><p>“They wanted to sell it because they realized we still have a large presence in the market and were competing head to head on a lot of deals,” White said. </p><p>Basin Street will serve as managing partner and will continue to work with a local brokerage firm.</p><p>(Contact Linda Castrone at argus@arguscourier.com)</p>