Exchange Sale of Sacramento Food Processing Facility Closes for $20.8MM

Stan Johnson Company, Sacramento, Raley’s, Emeryville, Libitzky Properties, Buzz Oates Companies, 1031 Exchange

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of 3925 Seaport Boulevard in West Sacramento, California. The 135,885-square-foot industrial facility is fully leased to Raley’s, which is a privately held family of grocery stores in California and Nevada. Stan Johnson Company’s Ben Prater represented the Emeryville, California-based private seller, Libitzky Properties Companies. The buyer, Buzz Oates Companies, was a local developer who purchased the asset for $20.8 million at a 4.91 percent cap rate. Both parties were involved in 1031 exchanges.

“We brought the deal to market just as the pandemic hit, which created a few challenges, but due to the high quality and cold storage nature of the property, the asset quickly became highly sought-after,” said Prater, Associate Director in Stan Johnson Company’s Sacramento, California office. “We were able to achieve above-market pricing through an aggressive marketing campaign, and our buyer ended up being a local developer who was familiar with the asset and the tenant.”

The property includes a large percentage of refrigeration and freezer storage which is crucial for Raley’s and helped distinguish the asset from competing properties. The building serves as a production bakery and distribution center for the tenant and is strategically located, serving approximately 150 stores.

About Stan Johnson Company:               

Stan Johnson Company is one of the nation’s leading commercial real estate brokerage and advisory firms that focuses on investment sales transactions involving retail, office, industrial, healthcare, and specialty properties. The firm provides acquisition, disposition, sale leaseback, capital markets, and advisory services for institutions, developers, investment funds, corporate occupiers, and private investors across the United States. With a historic focus in the single-tenant net lease sector, Stan Johnson Company is now in its fourth decade of operation and has expanded its service platform in order to better serve its valued clients. The firm has completed more than $35 billion in transactions nationwide and continues to be regarded as the Net Lease Authority® as it focuses on continued growth and expansion into other industry sectors and services.

About Libitzky Property Companies:               

Libitzky Property Companies (LPC) is a privately held real estate investment company that owns and operates 7,000,000 square feet of commercial properties in nine states. LPC strategically adds value to its portfolio through lease-up, renovation, and entitlement activity. LPC was founded in 1978 and is headquartered in Emeryville, California.

West Coast Commercial Real Estate News