The Great Recession was not kind to the city Sacramento. According to a study by the Pew Charitable Trusts, two years after the end of the Great Recession, revenue was still dropping in Sacramento, and growing pension obligations have kept the city at risk of a credit downgrade. But recently, the city has seen an economic resurgence. As the Bay Area continues to deal with affordability, the California capital city has become a viable alternative to some, and investors are beginning to take note.
This week, Newmark Knight Frank and it’s Northern California Capital Markets Team announced that it had closed on the sale of Sacramento’s Park Plaza located at 1303 J Street in the city’s downtown core. The nearly 73,000 square foot asset was sold by Boston-based TA Associates for $210 per square foot, or just over $15 million, according to sources with direct knowledge the details of the transaction. The buyer was San Jose-based Insight Realty Company. Newmark’s efforts were led by Grant Lammersen and Steven Golubchick, both are vice chairmen with the firm’s office in San Francisco, along with Edmund Najera, executive managing director, and Nicholas Alimam, director.
Insight is no stranger to Sacramento, or working with TA Associates. The companies transacted in April of 2016, when TA sold the 155,448 square-foot 2180 Harvard St. property to Insight for $18,390,500, or just over $118 per square foot, according to public records. This property is three miles from Mid-Town and four miles from the State Capitol Building, and Insight had renamed the building to Harvard Square.
Newmark did not respond to calls seeking comment on the transaction.