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Capital City is Once Again Open for Business
ROSEVILLE, CA - Activity in the Sacramento region is continuing to hum along. Some $4 billion of projects planned during the next five years, the completion of the Golden 1 Arena, revitalization of the Railyards and new hospital all point to stability and vitality returning to the local economy.
Dovetailing with that activity level is the joint venture between Barker Pacific Group and WHI Real Estate Partners acquiring its second project. Olympus Corporate Center is a class-A office asset consisting of four multi-tenant buildings totaling 195,665 square feet. The purchase price was $33.85
million, GlobeSt.com learns.
"Roseville is an attractive market, given where we are in the cycle," said Michael Barker, managing director and CEO of Barker Pacific Group, tells GlobeSt.com. "Compared to the run up in prices in the San Francisco Bay Area, Roseville still has value, and makes for an appealing investment."
Olympus Corporate Center boasts an array of tenants, including Direct Technology, Granite Bay Development, KB Home, Gallelli Real Estate, Orange Hook and UBS. Located at 3001, 3005, 3009 and 3013 Douglas Blvd., Olympus Corporate Center consists of four two- and three-story buildings located in Roseville's Douglas Corridor. The project has amenities including an on-site
fitness center and conference room.
Following the trend set with its first Roseville project, Lava Ridge Business Park, the joint venture secured debt financing from BBVA Compass. Chris Lemmon and Zac Collie of Newmark Cornish & Carey are Olympus?s leasing agents, observing the asset has minimal need for deferred maintenance, leaving room to focus on improving the lobbies and upgrading corridors.
"Olympus Corporate Center is one of the most attractive campuses with outdoor plaza areas in the Roseville market," said Barker. "The Roseville office submarket is the premier suburban office location in the Sacramento region, and our team is committed to providing office space for the market?s diverse array of tenants."
The acquisition of Olympus Corporate Center is the joint venture?s second foray into the Sacramento market after the acquisition of Lava Ridge Business Center. Barker Pacific Group also developed 100 First Plaza, and currently owns and manages One Sansome Street in San Francisco.
"Olympus Corporate Center is a fabulous asset. We see great potential to increase value," said WHI Real Estate Partners' Jim Orth.
In other Sacramento acquisition news, Lowe Enterprises Investors in joint venture with The Family Office, has acquired a portfolio of four office buildings totaling 316,771 square feet located in Gateway Center. Gateway I through IV are located at 2150 River Plaza, 2151 River Plaza, 2295 Gateway Oaks and 2520 Venture Oaks in the South Natomas area of Sacramento. The purchase price was undisclosed.
"The Sacramento area has been slowly recovering from the recession and is poised for growth," said Brad Howe, co-CEO of Lowe Enterprises Investors. "Over $1 billion of new projects and infrastructure are underway with another $4 billion of projects planned over the next five years. The new Golden 1 Arena, revitalization of the Railyards and new hospital signal stability and vitality returning to the local economy."
Gateway Center is located along Interstate 5 near the Interstate 80 interchange, offering access to downtown and the Sacramento International Airport. Built between 1990 and 1998, the buildings are configured to accommodate medium and small-space tenants and are currently 86% occupied by 64 tenants.
"The Gateway Center area offers a convenient and attractive alternative to downtown Sacramento, where office rental rates have increased by as much as 25%," said Peter Houghton, a Lowe Enterprises Investors senior vice president.
The joint venture plans to update the properties, including lobby renovations, landscape and lighting improvements, upgrades to conference rooms, common areas and outdoor gathering spaces. Lowe Capital City is Once Again Open for Business Enterprises affiliate, Lowe, will operate the buildings and manage improvements to the property. The portfolio comprises Gateway I with 122,629 square feet, Gateway II with 66,186 square feet, Gateway III with 45,814 square feet and Gateway IV with 82,142 square feet. Lowe?s previous activities in the area include operating and jointly owning the One Capitol Center and Prospect Green buildings in Rancho Cordova.
The Gateway Oaks buildings are Lowe?s third acquisition in Northern California in the past several months. The company acquired the 2581 Junction office building in San Jose and the 500 Ygnacio Valley Road office building in Walnut Creek in late 2016.
Peter Morgan led the Lowe acquisition team. Eisner Jaffe represented the buyer for the acquisition and the joint venture. This is the first acquisition by the joint venture with an objective to acquire several additional West Coast office properties in 2017.
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