Atlanta-based Invesco is expanding its footprint in Northern California, and this time the company is buying into the Sacramento industrial market with two recently-completed spec properties developed and owned by Ridge Capital and partner Buzz Oates. The two properties, totaling 348,000 square feet were sold for a combined $61 million, or just over $175 per square foot, according to a recent industry report from Colliers.
The two properties are located at 3065 Ramco St. and 3085 Mary Pl. The Ramco property is 119,000 square feet, and the Mary Place property measures at 229,000 square feet. Both properties were completed in 2020. Ramco sold for $20.9 million, while the Mary Place property’s price was $40.1 million.
A third property, which measures at 148,000 square feet and is also part of the same development, is located at 3095 Mary Pl. This property is not finished, yet, but it is planned for acquisition by Invesco, as well, according to reports, citing a statement by the property’s broker, Mark Demetre of Colliers. This sale is planned to close at the end of the year, although the building does not have a tenant lined up, yet.
Tenants in the other two properties include Safelite AutoGlass, Pitney Bowes Inc. and Ceva Logistics, according to published reports.
Sacramento’s industrial market is still on solid ground as tenant demand holds strong throughout the first half of 2022, according to a recent, Q2 of 2022 Sacramento Industrial Market Report by Colliers. Vacancy in the region has increased after 3 quarters of continuous reduction. This vacancy has been spurred mostly by speculative development hitting the market, however, rising construction costs and interest rates are starting to create pressure on developers who may reconsider starting new projects.
Sacramento’s sales volume spiked during the second quarter with $315.8 million of sales volume, more than double the first quarter’s total, according to Colliers’ report. The average price per square foot on these deals came to $161 per square foot, which is only nine percent below the price point paid for office products in the region.
Year-to-date industrial sales hit $448 million, which is 15 percent off 2021’s record-high of $1.26 billion but still proceeding at an encouraging rate, stated Colliers. Occupancy gains slowed in the second quarter with 325,939 square feet of net absorption recorded across the region’s warehouse/distribution properties, the report confirmed.