Cushman & Wakefield Brokers Sale, Retained for Leasing and Property Management
(EDITOR’S NOTE: According to public documents, the seller of the property was Swift Real Estate Partners, which owned the asset since March of 2015. Swift paid $25 million, or just below $287 per square foot. The price New York Life paid was $28.1 million, according to public documents, or just over $322 per square foot.)
SACRAMENTO, Calif., March 13, 2020 – Cushman & Wakefield announced today the firm represented the seller of 630 K Street in downtown Sacramento, California. New York Life Real Estate Investors (“NYL REI”), on behalf of an institutional client, acquired the five-story 87,140-square-foot, mixed-use office and retail building situated adjacent to Golden 1 Center from Swift Real Estate Partners. As part of its repositioning plan, the owner will be making significant capital improvements to the asset that will bring it to Class A market-ready condition.
630 K Street is the second acquisition NYL REI has arranged on behalf of its client in downtown Sacramento in the past two years. In early 2018, 770 L Street, a 170,267-square foot Class A office tower located right around the corner was also acquired.
Cushman & Wakefield’s Northern California Capital Markets group comprising Adam Lasoff, Seth Siegel, Steve Hermann, Ryan Venezia and Eric Fox in the Bay Area together with Ron Thomas and Kevin Partington of the firm’s Sacramento office brokered the sale of 630 K Street. NYL REI retained Cushman & Wakefield to perform Project Leasing services, an effort being led by Ron Thomas, Kevin Partington, Spencer Nielsen and Ben Corfee, as well as Property Management services on its new asset.
“We are thankful for the assistance provided by Cushman & Wakefield in acquiring this asset and look forward to working with them in bringing it to stabilization. We continue to be compelled by the growth trajectory recently experienced by Downtown Sacramento and believe in its prospects going forward. The dynamism being created within the DOCO region is impressive and we look forward to contributing to its continuation through our ownership of 630 K Street,” said Ross Berry, Senior Director at NYL REI.
630 K Street is positioned at the 7th Street terminus of K Street, the main pedestrian entrance to Downtown Commons (DOCO), which since its completion in 2016 has become the social epicenter of Sacramento and is the region’s leading live/work/play destination. The location also provides direct access to multiple public transportation options servicing the region, with stops immediately in front of the building.
Ron Thomas, Managing Principal, said, “This was a rare value-add investment opportunity in the CBD, and by remodeling the asset and leasing up the available office space, the owner has an excellent opportunity to unlock the true value of this coveted, amenitized building situated in a world-class location in the heart of downtown’s vibrant entertainment district, and which also provides great regional accessibility and city views.”
Thomas added, “Downtown has a severely limited number of sizable Class A leasing options to support the existing tenant demand and office growth in our urban core. Upon completion of the asset’s transformation, 630 K Street will provide well-appointed, modernized full floor and/or contiguous floor options for larger users—it is one of few buildings that can deliver a full floor in a Class A building, let alone up to 62,000 square feet or more in downtown.”
In addition to its four stories of glass-lined office space, 630 K Street consists of basement and ground-floor retail space that is fully leased to a strong tenant roster of food/coffee/beverage, financial and other services directly accessible to occupants. The location is also walkable to the substantial amount of dining, shopping and entertainment options within DOCO and the surrounding downtown area. Exceptional tenant signage and visibility in a premier location are further potential perks for future larger tenants in the building.
Thomas noted, “The property is also uniquely equipped with two wall billboard signs, one on each side of the building, and that also provide an additional source of income for the owner.”
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 approximately 53,000 employees in 400 offices and 60 countries. In 2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
About New York Life Real Estate Investors
New York Life Real Estate Investors is a division of NYL Investors LLC, a wholly-owned subsidiary of New York Life Insurance Company. For more information please visit: http://www.newyorklife.com/realestateinvestors.
New York Life Real Estate Investors is a full service, fully-integrated real estate enterprise with more than 100 professionals. The division has market-leading capabilities in origination, underwriting, and investment in real estate equity products and related debt, including real estate equity investments, commercial mortgage loans and commercial mortgage backed securities. With over $58.3 billion in assets under management as of December 30, 2019. (1) New York Life Real Estate Investors is actively seeking to acquire additional properties throughout the U.S.