Tuesday, December 15, 2020

Tri Commercial Real Estate's Osborne Group Announces Construction of Ground-Up Medical Office Building in El Dorado Hills, CA

 

 Robb Osborne

El Dorado Hills, CA, Dec. 15, 2020 – TRI Commercial Real Estate’s The Osborne Group, a leading provider of commercial real estate services in the greater Sacramento area, announced today that construction is underway for a new ground-up medical office building at 8105 Saratoga Way in El Dorado Hills, California, an affluent submarket of Sacramento.

The mostly speculative Class A development, which is owned by a medical group through KFG & FOUR Cs LLC, demonstrates the strength and stability of the medical office sector in Sacramento as well as ongoing opportunity within the sector, according to Robb Osborne, Principal at TRI Commercial and The Osborne Group, which is representing the property for lease.

“While the pandemic has challenged and will continue to challenge many asset classes within the commercial real estate industry, medical office is well positioned for growth,” says Osborne.

Dr. Kelly Hunt 

“Maintaining health and wellness has clearly become a focal point for people. With the imminent release of a viable and safe COVID-19 vaccine and research showing that medical office investments are highly favored for their long-term leases, stable occupancy and income, and tenant credit quality, we anticipate this sector to continue to prosper.”

The affluent El Dorado Hills market where the medical building is being constructed boasts a median household income of $137,903, and 82.5% of the population within a three-mile radius is covered by health insurance.

 This creates a particularly strong location for the property use, notes Osborne.

“The El Dorado submarket contains only about 2.5 million square feet of office space,” says Osborne. “The vacancy rate has notably compressed since 2017, and with positive net absorption for the past three years, office demand has remained healthy.

"These solid fundamentals bode well for continuing demand for this type of new construction in the market.”

Osborne notes that he is optimistic about transaction volume in the Sacramento region heading into the new year as 2020 has been strong for his team, which focuses on office sales and leasing, as well as industrial and retail, in the market.

“In a year marked by a pandemic and financial uncertainty for many, the Osborne Group has performed extremely well, completing 36 lease transactions and 20 sale transactions comprising 250,000 square feet and more than $37 million to date in 2020,” says Osborne.

“In addition, we continue to expand and have added a new team member: Kannon Kuhn, who assists with listings, represents tenants and users, and gathers market research for both lease and sales transactions.

"We are looking forward to ongoing growth in 2021, beginning with the leasing up of this highly desirable asset.”

Kannon Kuhn

There are many medical office users and few high-end properties comparable to this new building in the Roseville/Rocklin/Folsom submarkets of Sacramento, according to 8105 Saratoga Way owner Dr. Kelly Hunt of KFG & FOUR Cs LLC.

“As physicians, we’re aware that this higher-end building is truly needed in our community.  

"We will occupy part of the building ourselves, and we have received considerable interest from other reputable medical groups in the area,” says Dr. Hunt.

“The demand for a quality medical office like 8105 Saratoga Way, which offers exceptional visibility and access for Sacramento and El Dorado Hills/Latrobe Road commuters, is already strong and demand will likely grow. 

"In fact, the population of El Dorado Hills has grown by nearly 10 percent in just the past five years.”

8105 Saratoga Way is a 33,000 square-foot, two-story building that will focus on dental, medical, and minor surgical uses. The property is adjacent to Highway 50 at the Latrobe Road exit and enjoys proximity to residential communities, shopping, daily needs retail, and restaurant centers.

 CONTACTS:

 

 Katie Haga / Jenn Quader

Brower Group

(949) 438-6262

khaga@brower-group.com

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