San Francisco, CA (April 26, 2021) — Newmark Knight Frank (“Newmark”) announces it has arranged the $57.5 million (just over $182 per square foot) sale of 1625 & 1747 North Market, a Class A two-building office park located in Sacramento, California.
Newmark’s Vice Chairman Grant Lammersen, Head of Northern California Capital Markets Steven Golubchik, Senior Managing Director Jonathan Schaefler, Director Darren Hollak and Associate Director Jack Phipps represented the seller,Pac West Office Equities, L.P., in the transaction to buyer Nome Capital Partners.
“1625 & 1747 N. Market offers the highly-desired opportunity to acquire an asset with stable, long-term cash flow from investment-grade tenancy,” said Lammersen. “The project will join Nome Capital Partner’s expanding portfolio of income-driven office assets located in key markets throughout California.”
Totaling 315,372 square feet across 22.99 acres, the project is currently 99% leased to the AA-rated California Department of Consumer Affairs (DCA). With occupancy at the project since 2005, the Department of Consumer Affairs has demonstrated long-term commitment through recent extensions and expansions within the buildings as well as significant capital investment into their space.
The project is being acquired by San Francisco-based Nome Capital Partners, a real estate private equity asset management firm specializing in the acquisition and management of government and healthcare office assets.
There is an additional 4.6 acres of excess land included in the project that has the potential to be developed as an additional office building for future use. Located in the North Natomas submarket of Sacramento, the project presents an abundance of walkable retail amenities, direct access to I-80 and proximity to Downtown Sacramento. Nome Capital Partners plans to invest in solar plants and smart energy technologies to increase the efficiency of the project.
According to Newmark Research, North Natomas continues to be one of the top-performing submarkets in the region boasting a Class A office vacancy rate of just 2.6%, significantly lower than the overall Sacramento Class A market’s rate of 7.0%.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently-owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.