Sale of Industrial Building in Roseville Could Net $32.5MM

By Jon Peterson

Indianapolis, Ind.-based Scannell Properties has put on the market for sale the 198,774 square foot industrial building in Roseville located at 8501 Foothills Boulevard. The price for this property could come in at $32.5 million, or just over $163 per square foot, according to sources familiar with the property.

The current ownership of the property did not respond to phone calls seeking comment for this story. The asset up for sale was developed in 2013.

The listing agent on the sale is CBRE. Two people leading the efforts for CBRE are Darla Longo, vice chairman/managing director, and Rebecca Perlmutter, senior vice president. CBRE also declined to comment when contacted for this story.

The projected cap rate on the sale is anticipated to be in the range of 5.25 to 5.5 percent, as stated by sources aware of the sale of the property. This yield is based on the property’s current net operating income. The asset is a build-to-suit complex for the FedEx Ground Package System, a wholly-owned subsidiary of the FedEx Corporation. It has a lease that runs through November 2028. FedEx Ground operates their small package delivery system out of this facility. The tenant has invested $15 million, or $75 per square foot, of its own capital into the property.

The property has installed a computerized sorting and handling conveyor system that can sort up to 15,000 packages per hour and is only located at mission critical facilities. The property includes a large paved yard with ample parking and an additional five acres of land adjacent to the building that provides an opportunity to add trailer parking, expand the building or sell the excess land down the road. There is about 7,700 square feet of office space in the property.

In the Roseville industrial market for 2017 there was a 13.3 percent increase in market rents with very little new construction. The overall market in Roseville had around a 3 percent vacancy for industrial properties. This drops to 1.7 percent for class A and B quality distribution buildings.

Scannell is know as a nation developer of industrial buildings. It can do either spec or build-to-suit projects. The company does have a regional office in Lafayette. It has developed in many markets in Northern California. These include Napa, American Canyon, Livermore, Sacramento and Manteca, according to its Web site.

West Coast Commercial Real Estate News