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| 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.
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| 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.”
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| 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
(949)
438-6262
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