Doubling-Down on Downtown Sacramento
Cushman & Wakefield have facilitated the acquisition of 87,140-square-foot mixed-use office and retail building, 630 K Street in downtown Sacramento, California by New York Life Real Estate Investors (NYL REI).
As part of a new repositioning plan, the owner will be making significant capital improvements to the asset that will bring it to Class A market ready condition.
630 K Street is the second acquisition NYL REI has arranged on behalf of its client in downtown Sacramento in the past two years. In early 2018 770 L Street, a 170,267-sf Class A office tower located right around the corner was also acquired.
Cushman & Wakefield’s Northern California Capital Markets group comprising Adam Lasoff, Seth Siegel, Steve Hermann, Ryan Venezia and Eric Fox in the Bay Area together with Ron Thomas and Kevin Partington of the firm’s Sacramento office brokered the sale of 630 K Street. NYL REI retained Cushman & Wakefield to perform Project Leasing services, an effort being led by Ron Thomas, Kevin Partington, Spencer Nielsen and Ben Corfee, as well as Property Management services on its new asset.
“We are thankful for the assistance provided by Cushman & Wakefield in acquiring this asset and look forward to working with them in bringing it to stabilization. We continue to be compelled by the growth trajectory recently experienced by Downtown Sacramento and believe in its prospects going forward. The dynamism being created within the DOCO region is impressive and we look forward to contributing to its continuation through our ownership of 630 K Street,” said Ross Berry, Senior Director at NYL REI.
630 K Street is positioned at the 7th Street terminus of K Street, the main pedestrian entrance to Downtown Commons (DOCO), which since its completion in 2016 has become the social epicenter of Sacramento and is the region’s leading live/work/play destination. The location also provides direct access to multiple public transportation options servicing the region, with stops immediately in front of the building.
Ron Thomas, Managing Principal, said, “This was a rare value-add investment opportunity in the CBD, and by remodeling the asset and leasing up the available office space, the owner has an excellent opportunity to unlock the true value of this coveted, amenitized building situated in a world-class location in the heart of downtown’s vibrant entertainment district, and which also provides great regional accessibility and city views.”
Thomas added, “Downtown has a severely limited number of sizable Class A leasing options to support the existing tenant demand and office growth in our urban core. Upon completion of the asset’s transformation, 630 K Street will provide well appointed, modernized full floor and/or contiguous floor options for larger users—it is one of few buildings that can deliver a full floor in a Class A building, let alone up to 62,000 sf or more in downtown.”
In addition to its four stories of glass lined office space, 630 K Street consists of basement and ground floor retail space that is fully leased to a strong tenant roster of food/coffee/beverage, financial and other services directly accessible to occupants. The location is also walkable to the substantial amount of dining, shopping and entertainment options within DOCO and the surrounding downtown area. Exceptional tenant signage and visibility in a premier location are further potential perks for future larger tenants in the building.
Thomas noted, “The property is also uniquely equipped with two wall billboard signs, one on each side of the building, and that also provide an additional source of income for the owner.”