Nearon Enterprises Enters Sacramento Industrial Market
- Sep 05, 2018
Nearon Enterprises has purchased a three-building industrial portfolio in Sacramento’s Power Inn submarket. The facilities total approximately 518,000 square feet and are fully leased to American Building Supply Inc., a subsidiary of Jeld Wen.
Massie & Co. sold the portfolio for $34 million with the assistance of Cushman & Wakefield. The facilities are located at 6300 S. Watt Ave., 8360 Elder Creek Road and 8920 43rd Ave.
A desirable submarket
Built between the late 1980s and 1990s, the facilities are situated on almost 30 acres and can be accessed via interstates 50 and 99. According to Cushman & Wakefield data, the Power Inn submarket is one of the most sought-after industrial areas in Sacramento, which is otherwise known for its dynamic retail activity. Vacancy in Power Inn was 3.7 percent in August, below the city’s overall industrial vacancy of 4.4 percent.
“The tenant still has several years of term remaining on their lease. This long tenure, coupled with in-place rents approximately 30 percent below market standard will provide stable cash flow and also a value-add component at renewal,” said Executive Director Kevin Partington in a prepared statement.
The team of brokers arranging the transaction included, in addition to Partington, Matt Cologna, Bryce MacDonald, David Nicholson, Ron Thomas, Bruce Hohenhaus, Chris Schwarze, Adam Lasoff, Seth Siegel, Steven Hermann and Eric Fox.
“With limited entitled land options and skyrocketing construction costs, the properties are pretty well-insulated from downside risk,” added Partington.