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| 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.
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| 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.
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| Grant Lammersen |
“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.”
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| 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.
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.
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| Steve Golubchik |
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.
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.
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| Tyler Myerdirk |
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.
“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.
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| Bruce Fischer |
“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.”
CONTACT:
Micaela Fehrenbach
mfehrenbach@brower-group.com
mfehrenbach@brower-group.com
