Firm Announces Sale of Two High Profile, Fully Leased Properties, and Brings another Major Property to Market
SACRAMENTO, Calif. (February 28, 2019) – Cushman & Wakefield announced today the firm’s Northern California Capital Markets group, together with local market experts, have collaborated to advise on a pair of high profile investment sale transactions totaling approximately 466,000 square feet in the Sacramento region. The sales consisted of a fully leased medical office portfolio along with a multi-building office campus leased to a Fortune 500 Company.
Ron Thomas, Managing Principal of Cushman & Wakefield’s Sacramento office, said, “Sacramento’s economy remains robust, while leasing and sales activity across our commercial and housing sectors continues to flourish. Investors, whether regional, national or global companies or high net worth individuals, remain magnetized by our market’s strong fundamentals and performance—spurred particularly by what’s happening in the San Francisco Bay Area.” He added, “These large-scale transactions that we’ve recently advised on—which are very attractive properties for many reasons—exemplify this sentiment, as well as serve as a boost to the region’s office investment activity to kickoff 2019, on the heels of its record-setting volume in 2018.”
In Cushman & Wakefield’s most recent closing in February, Anchor Health Properties acquired a four-building medical office portfolio totaling 287,539 square feet in Roseville through a joint venture with an affiliate of Morgan Stanley Real Estate. Known as Parkway Corporate Plaza, the portfolio was 100% leased at the time of sale, with key tenants including Kaiser, Sutter Health, Wells Fargo, UC Davis, and the State of California Department of Social Services. The portfolio consists of 1620, 1640, 1660 and 1680 E. Roseville Parkway, providing immediate access to major freeways, public transportation, and top retail amenities. The seller was an affiliate of Broe Real Estate Group and was represented by Seth Siegel, Adam Lasoff, Steve Hermann, Eric Fox and Ryan Venezia who form Cushman & Wakefield’s Northern California Capital Markets group, together with Travis Ives, a member of Cushman & Wakefield’s Healthcare Advisory Group, and the firm’s Chris Schwarze as local market leasing expert.
Siegel, Executive Managing Director, said, “Situated between two major hospital campuses (Kaiser and Sutter Health), the portfolio of properties draws strong interest from the region’s top medical office tenants. It benefits from a campus-like feel and an above-market parking ratio. He added, “Parkway Corporate Plaza’s features, combined with its long term leases and investment grade tenant roster, provide upside with the stability of a core investment.”
In January, Cushman & Wakefield also advised on the sale of a Class A office campus totaling 178,429 square feet in Rancho Cordova. The two-building property is located at 10730 and 10734 International Drive and is 100% leased to Centene Corporation, which utilizes the buildings for its call center operations. The buyer was a family office and the seller was a real estate investment trust. Cushman & Wakefield’s Adam Lasoff, Seth Siegel, Steve Hermann, Eric Fox and Ryan Venezia, together with Ron Thomas, represented the seller in the transaction.
The Centene buildings are positioned in a desirable business park environment and notably have never been vacant since developed in 2001. The assets have also been very well maintained and upgraded, featuring institutional quality construction, fitness rooms, efficient floor plates, state-of-the-art infrastructure, high quality interiors, great glass lines, and sought after parking. Furthermore, situated near Highway 50, the property is primed to benefit from the outstanding growth the region has experienced the past two years.
Cushman & Wakefield has also been hired to market the sale of a high profile 399,636-square-foot office property in downtown Sacramento. Located at 1515 S Street, the buildings are fully leased on a long-term basis to the State of California. Close to the State Capitol and in the heart of the burgeoning R Street Corridor, Sacramento’s most thriving shopping, dining and entertainment district, the asset(s) represent one of the best locations in downtown. The sales effort is being handled by Cushman & Wakefield’s Adam Lasoff, Seth Siegel, Travis Trautvetter, Steve Hermann, Eric Fox, and Ron Thomas.
According to Cushman & Wakefield’s latest investment report, in 2018 Sacramento office investments exceeded the $1.0 billion mark for the third consecutive year, with nearly $1.14 billion in transactions. Last year represented the highest dollar volume on record for Sacramento’s office market.
William Austin, Senior Analyst with Cushman & Wakefield Research in Sacramento, added, “Sacramento continues to draw significant interest from investors looking to capitalize on the burgeoning local economy. Total investment activity across all sectors reached $1.14 billion during the fourth quarter of 2018, the seventh consecutive quarter surpassing $1.0 billion. This lifted the overall total for 2018 to $4.48 billion, the highest annual amount since 2000.”
|About Cushman & Wakefield|
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com.