PCCP Sells Three-Building Sacramento Industrial Asset for $31MM

Sacramento, PCCP, Seaport Industrial Park, Schnitzer Properties, Harsch Investment Properties, Colliers

By Vladimir Bosanac

After owning an industrial property in Sacramento for roughly two years, Los Angeles-based PCCP is selling a three-building asset at a nice profit. The company is selling the 225,626 square-foot Seaport Industrial Park for $31 million, or just over $137 per square foot, to Portland, Ore.-based Schnitzer Properties, a West Coast industrial property investment and commercial real estate firm. PCCP purchased the asset in July of 2020 for $18,990,000, according to public records reviewed by The Registry.

The latest transaction was first reported by the Sacramento Business Journal.

The property is situated on 11.3 acres located at 3910, 3930 & 3940 Seaport Blvd. in the West Sacramento submarket with immediate access to US Interstate-80, US Interstate-5, State Road 50 and downtown Sacramento. This multi-tenant industrial park is home to McKesson Corp., Frito Lay, Hunter Douglas N.V. and the U.S. Postal Service, according to published reports. 

The property includes parking, 22-26′ clear height ceilings and 14 grade-level doors. Schnitzer is planning to add some improvements to the property, which will include updated landscaping and fresh paint.

Schnitzer Properties, formerly known as Harsch Investment Properties, was founded by Harold Schnitzer in 1950 when he converted an old warehouse into an office building. Today, the company owns a portfolio of office, multi-tenant industrial, multi-family and retail commercial properties, mostly across the Western United States. The company has seven regional offices with over 280 real estate professionals.

PCCP is a major global investment manager with over $18.2 billion in assets under management. The company’s major offices are in New York, San Francisco, Atlanta and Los Angeles. The company looks to invest across the capital stack, from joint venture equity to senior and mezzanine debt, while seeking to identify the best risk-adjusted returns for its investors, according to the company’s website.

Sacramento’s industrial market is still on solid ground as tenant demand holds strong throughout the first half of 2022, according to a recent, 2022 Q2 Sacramento Industrial Market Report by Colliers. The warehouse/distribution market vacancy rate ticked up 40 basis points last quarter, but this was from its all-time low of 4.1 percent. Roughly 552,000 square feet of spec product was delivered to the market, which had an impact on those figures. 

Quarterly industrial net absorption of 367,000 square feet decelerated from the pace of the last four quarters but is expected to escalate in the near term as new construction is occupied, the report stated. Market average warehouse/distribution asking rents rose 17.6 percent year-over-year to an all-time high of $0.70 per square foot NNN.

On the investment sales side, quarterly sales volume more than doubled from the first quarter to $315.8 million, and the average sale price of $147 per square foot jumped 47 percent year-over-year, stated Colliers.

West Coast Commercial Real Estate News