Renovated Distribution
For Sale
$3,300,000
106 Galli Drive, Novato, CA 94949
Multi-tenant industrial facility with a gated yard, flexible configuration options, and substantial recent building improvements.
Property Size12,236 SF
Lot Size0.50 Acres
Price / SF$269.70
Days on Market157
Property Features for 106 Galli Drive
General Information
Standard status
Active
Size
12,236 SF
Lot size
0.50 Acres
Property subtype
Industrial - Warehouse/Distribution
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Building Details
Building Size
12,236 SF
Year Built
1977
Year Renovated
2025
Buildings
1
Tenancy
Multi
Listing Agency:
Meridian Commercial
(415) 259-9642
Listed By:
Samuel Ko · License #01894341
Source:
Commercialcafe
Added: Mar 28
Changed: Aug 30
Last Checked: Aug 30 at 12:51PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Meridian Commercial
Investment Insights
Based on property information with market context.
This multi-tenant distribution facility at 106 Galli Drive includes approximately ±12,236 SF on an approximately half-acre corner lot. A comprehensive renovation added a new roof and gutters, replaced portions of the roof structure, installed new roll-up doors and windows, and refreshed the interior and exterior finishes. Site improvements include upgraded paving, curbs, hardscape, irrigation, lighting, and landscaping. The property also includes a secure gated yard and parking area of approximately ±10,000 SF.
The building is located in Bel Marin Keys Industrial Park in Novato, with access to major highways and transportation hubs. Two major shopping centers and local services are within walking distance. The water main is being upgraded to support new fire sprinklers, while two new restrooms and multiple sewer stub-outs are planned for delivery, supporting flexible space configuration and division.
The building is located in Bel Marin Keys Industrial Park in Novato, with access to major highways and transportation hubs. Two major shopping centers and local services are within walking distance. The water main is being upgraded to support new fire sprinklers, while two new restrooms and multiple sewer stub-outs are planned for delivery, supporting flexible space configuration and division.
Key Highlights
- ±12,236 SF multi‑tenant industrial building
- Approximately half‑acre corner lot in Bel Marin Keys Industrial Park
- Secure gated yard and parking area of approximately ±10,000 SF
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$186,712
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.66%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,734,240
$3.7M
Cap Rate 7%
$2,667,314
$2.7M
Cap Rate 9%
$2,074,578
$2.1M
Market Conditions
NOI Build-Up for 12,236 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$234.9K $19.20/SF
− Vacancy
−$15.3K −$1.25/SF
EGI
$219.7K $17.95/SF
− OpEx
−$32.9K −$2.69/SF
NOI
$186.7K $15.26/SF
Area
Marin County, CA
Vacancy
6.50%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
15.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,734,240
Cap Rate 7%
$2,667,314
Cap Rate 9%
$2,074,578
Alternative Uses
Best Use
Warehouse
$2.67M
$2.33M – $3.11M
NOI $186,712 @ 7.0% cap · market cap 5.66%
Second Best
Industrial
$2.09M
$1.83M – $2.44M
NOI $146,465 @ 7.0% cap · market cap 4.44%
Theoretical Best
Specialty Retail
$59.77M
$52.30M – $69.73M
NOI $4,183,748 @ 7.0% cap · market cap 126.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,109
Businesses Nearby
Explore this area
Business Placement
Demographics for 94949, CA
17,588
Population
7,541
Households
2.3
Avg Household Size
46
Median Age
48%
College-Educated
93%
High-School Grad
13.4 sq mi
ZIP Area
1,313
Density / Sq Mi
$116,101
Median Household Income
$60,149
Median Earnings
$2,596
Median Rent
$1,075,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Distribution center - Multi-tenant industrial facility with a gated yard, flexible configuration options, and substantial recent building improvements.
Where is this distribution center located?
The property is located at 106 Galli Drive Novato, CA.
What is the asking price?
The asking price for this property is $3,300,000.
What are key features of this property?
This property features: ±12,236 SF multi‑tenant industrial building; Approximately half‑acre corner lot in Bel Marin Keys Industrial Park; Secure gated yard and parking area of approximately ±10,000 SF
