Tuesday, February 25, 2020

KBS Assisted in $165.5 Million Acquisition of Park Tower in Sacramento, CA

Park Tower, a 489,171 square-foot Class A office building in downtown Sacramento, Ca

SACRAMENTO, CA (Feb. 25, 2020) – KBS, one of the largest investors in premier commercial real estate in the nation, announced today the company assisted in the acquisition of Park Tower, a 489,171 square-foot Class A office building in downtown Sacramento, California. 

Rod Richerson
The property was acquired for $165.5 million by Prime US REIT (PRIME), which trades on the Singapore Exchange Securities Trading Limits ticker as: OXMU. 

Grant Lammersen, Steve Golubchik and Tyler Myerdirk of Newmark Knight Frank brokered the transaction.

Bruce Fischer, Christine Fan, and Howard Chu of global law firm Greenberg Traurig, LLP’s Orange County office represented PRIME as legal counsel in the acquisition.

KBS serves as the U.S. based asset manager for the portfolio, which included identifying and sourcing this asset on behalf of the portfolio. Park Tower is a Class A property that consists of 24 stories of office space, retail and parking garage space.

Grant Lammersen
“This is the first new acquisition for the portfolio since listing 11 properties on the Singapore Exchange last year,” says Rod Richerson, regional president, Western United States, for KBS.

 “Acquiring Park Tower is a strategic investment into a prime location and a premier asset. At 92% occupancy, Park Tower is one of the top five buildings in the downtown Sacramento market with strong in-place cash flow and a diverse base of credit tenants.”

Sacramento is a region with healthy fundamentals for continued growth, adds Richerson.

 “Private companies are increasingly drawn to Sacramento for its abundant young and highly educated workforce and lower cost of living. More than 34% of individuals in the area have a college degree.”

 Christine Z. Fan

According to a Q4 2019 Sacramento Market Report from Newmark Knight Frank (NKF), the Sacramento office market maintained its positive momentum in the fourth quarter to finish the year strong. 

Steve Golubchik 
Net absorption was positive for the 13th consecutive quarter, totaling 159,317 square-feet, which brought the year to date total to a positive 780,922 square-feet.

Sacramento’s office market also features high barriers to entry with less than 5% vacancy in Class A office assets and no new projects under construction in the downtown market. 

Several major tech, biotech and healthcare firms have a presence in the region, including the Intel Corporation, Hewlett Packard, Apple, Sutter Health, Affymetrix, Lipomics Technologies Inc., Calgene LLC, Novozymes Biotech Inc. and Volcano Therapeutics.

One of the tallest buildings in Sacramento, Park Tower is centrally located at 980 9th Street and 1010 8th Street in Sacramento, California. 

Tyler Myerdirk 
The asset is situated within walking distance of California’s state capitol; Downtown Sacramento’s retail and entertainment core, Downtown Common, a newly developed mixed-use entertainment and shopping complex with 670,000 square-feet of retail, entertainment; and Golden 1 Center, the NBA’s Sacramento Kings’ basketball arena. 

Currently in development is a mixed use project called The Railyards which will double the size of downtown Sacramento when it’s completed. 

It’s the largest in-fill development project west of the Mississippi River and will include up to 515,00 square-feet of retail, 10,000 housing units, a state-of-the-art 21,000 seat soccer stadium and a 1.22MM square-foot 18-acre Kaiser Medical Center.

Bruce Fischer
“Working with PRIME to acquire a trophy asset in the heart of one of the strongest markets in California is a testament to KBS’ ability to identify best-in-class assets that attract today’s top office users,” says Brent Carroll, senior vice president for KBS and asset manager Park Tower. 

“This transaction allows us once again to utilize our proven hands-on asset management strategy to provide tenants with high-quality, well-amenitized office space.”


Micaela Fehrenbach 

Lifetime Achievement Award to be presented at CFCAR Hallmark Awards Luncheon Friday Feb. 28 to Central Florida Real Estate Businessman John Crossman

John Crossman
ORLANDO, FL ---   The Central Florida Commercial Association of REALTORS® will host the Hallmark Awards Luncheon at the Marriott in Lake Mary Friday Feb. 28 to recognize the best of the best for 2019 in the commercial real estate industry. 
CFCAR represents the ten-county area of Alachua, Brevard, Flagler, Lake, Marion , Osceola, Orange , Seminole, Sumter and Volusia.  
 Some of the Central Florida ’s most dedicated and productive commercial real estate pros will be recognized according to this year’s Hallmark committee chair, CFCAR’s President Paul P. Partyka, CCIM, MiCP who will be officiating.  
A highlight of this year’s award luncheon is the Lifetime Achievement Award to be presented to John Crossman, CCIM, outstanding Florida leader dedicated to helping the community. 
Paul P. Partyka
Throughout his commercial real estate career, Crossman has been passionate about inspiring the next generation by mentoring students and providing exposure and opportunities for diverse students to pursue careers in commercial real estate.

Register to attend the Hallmark Awards Luncheon by logging on to http://www.cfcar.net/Hallmark-Awards or for more information call President Paul Partyka at 407-341-0805