Sacramento Office Campus Recapitalized with PCCP-Arranged Loan
- Sep 30, 2015
A Sacramento-area office property is the subject of a sizable recapitalization operation recently conducted by PCCP. The company recently arranged $41.2 million to borrower Broe Real Estate Group for the Parkway Corporate Plaza in Roseville.
Consisting of four multi-tenant office buildings located at 1620, 1640, 1660 and 1680 East Roseville Parkway, the asset has had a troubled past. Before Broe took over the property, the 2001-built corporate campus had defaulted on a loan. Now the owner is recapitalizing the property and vacancy is currently at around 15 percent, and poised to drop.
The 287,539-square-foot asset is located on a 28.1-acre site in Roseville, one of the top commercial and residential areas in metro Sacramento. Proximity to executive housing, two hospitals, and convenient highway access via the nearby I-80 and I-65 are part of the overall package at Parkway Coporate Plaza. The area is home to 125,000 people and 7.5 million square feet of office product, that also features proximity to Douglas Boulevard Corridor, where average office vacancy rates are lower, at approximately 12 percent.
Six tenants currently make up the corporate center’s roster, including Kaiser Permanente, Wells Fargo, Act-On, and Sutter Medical Foundation. According to PCCP Assistant Vice President, Dorian Farhang, the loan and new equity will provide initial funding to finance the repayment of the existing loan and recapitalization of the asset.