Who Owns Sacramento?
Sacramento is on the radar of the world’s investment community. With Properties selling for $600 to over $1,000 a square foot in top tier markets like San Francisco, Sacramento’s class A office properties selling for $250 to $350 a foot seem like a pretty good value. In the last 5 years, several of Sacramento’s CBD office buildings have sold. Most recently, 400 Capitol Mall sold to Starwood for about $340 per square foot. Some other notable buildings in Sacramento’s CBD that are owned by out of town entities include:
- 980 9th Street (Park Tower) is owned by Los Angeles CIM Group. The building is on the market, and will probably sell for about $300 a foot. This property is offered with an additional parking structure. Recently signed a lease with the State for about 65,000 square feet, so that should bolster the sales price.
- 300 Capitol Mall, aka the Emerald Tower is owned by Sterling Investments out of New York. Home to the Department of Insurance and the State Controller. The Asset manager is Hines.
- The Senator Hotel office building, located across the Street from the State Capitol was acquired by Swift out of San Francisco for $198 a foot. In 2015 when they bought the building it was about 40% vacant. Currently the building is about 20% vacant and that will drop to about 10% when CMTA moves into 14,000 S.F.
- 621 Capitol Mall was Developed by David Taylor Enterprises and the Lewis Trust out of the UK. The Property sits on a City block across the Street from the Golden 1 Arena. Rumor has it the building was in contract but fell out and is no longer on the market. Don’t forget that there is a half block next to this building that could be developed into a hotel, office building or how about Condos like the ones planned 10 years ago?
- 501 J Street was bought by Kaiser and the 200,000 s.f. building is going through a considerable (complete) renovation. Kaiser will be occupying the building by the end of 2017.
- 1325 J Street is owned by Princeton Holdings out of New York. The 2014 acquisition was part of a 5 property portfolio and 1325 J was valued at approximately $305 per square foot.
- 801 K Street sold to GPT Property Trust out of Maryland for about $235 a foot in early 2016. The Renaissance Tower sits on a multi-level parking structure just 2 blocks from the east entrance of the Golden 1 Arena or DOCO (Downtown Commons).
- 770 L Street was picked up in August 2013 for about $178 per square foot by AMP Capital out of Australia. Shortly after acquisition the State of Ca leased up about 25,000 s.f. Then shortly thereafter, the Golden One Arena was announced, located just just two blocks from 770 L Street. College Hoops commentator Dick Vitale exclaimed, “Serendipity Baby!”
- 915 L Street is owned by Government Properties Trust located in Massachusetts. Predominately occupied by the State of California (Finance).
- 925 L Street is owned by JLL Income Property Trust out of Chicago. Home to the Legislative Counsel.
While we haven’t seen a lot of capitol flowing in from China or other international investment circles, it shouldn’t be too long before we see the international capitol flow quicken and surge. For additional commentary on Sacramento’s CBD, check out the article here: It’s Just a Matter of Time .