Sacramento Office Campus Lands $45M Senior Loan
- Feb 06, 2018
Pacific Coast Capital Partners LLC (PCCP)—a real estate investment management company specializing in debt and equity financing—has granted a $44.5 million senior loan to S&P Co. and Basin Street Properties for the acquisition of Prospect Green, a Class A, 518,156-square-foot, two- and three-story building office campus in Rancho Cordova, Calif.
Ranging from approximately 72,300 to 126,000 square feet, the buildings were developed in several phases between 1992 and 2001, and were purchased in prices ranging from $99 million to $179 million. Situated on a 32.5 acre-site, the property’s major tenants include the State of California, Liberty Financial Home Equity, Allstate Insurance and NEC Solutions. According to PCCP, the property was 73 percent occupied at the time of the sale. Located at 10877 to 10951 White Rock Road, 10850 and 10860 Gold Center Drive, Prospect Green also features a workout facility and a café.
“PCCP’s loan includes funds for the property acquisition as well as capital for future capital improvements and leasing expenses,” said Jim Galovan, partner with PCCP, in prepared remarks. “This is a quality asset with strong in-place cash flow and a significant opportunity to add value over the coming months through renovation and leasing.”
In the last few years, office-space development in this metro area went towards a downward spiral. Nevertheless, suburban markets have recorded an impressive gush of transactions thanks to the employment’s sector recovery and a growing demographic. Moreover, start-up companies are constantly searching for cheaper options as compared to larger metro areas.
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