Shorenstein Snags US Bank Tower in Sacramento
- Jan 16, 2018
A fund sponsored by Shorenstein Properties has acquired the U.S. Bank Tower, a 25-story Class A office high-rise in Sacramento, Calif., from a joint venture of David S. Taylor Interests and Britannia Pacific Properties.
JLL’s capital markets team represented the seller in the transaction, who completed the development of the building in 2008.
“621 Capitol Mall is one of highest caliber assets in Sacramento and the West Coast,” Rob Cole, JLL’s executive vice president in Sacramento, said in a prepared release. “David Taylor and his team have done a phenomenal job creating and maintaining a world-class asset.”
Joining Cole on the JLL team were Managing Directors Rob Hielscher and Michel Seifer, and Vice President Alan Stevenson.
Located at 621 Capitol Mall, the 366,000-square-foot office tower is situated just south of the Golden One Center and is just three blocks west of the state capitol. According to JLL, the prime location of the building, combined with the high quality of the asset resulted in great interest in the property.
The building’s tenant roster includes law firms, government agencies and tech companies.
“David S. Taylor Interests has been a great long-term partner and developed a best-in-class property,” Hector Caldera, Britannia Pacific Properties’ managing director, said. “Sacramento has been a great investment market for the group and we look forward to recycling the proceeds into other local developments over the next few years.”
The property also boasts more than 23,000 square feet of fully occupied retail and restaurant space and offers a large parking structure that services both the property and the Golden One Center.
In June, Shorenstein acquired a recently renovated 54-unit apartment building in Manhattan’s East Village neighborhood for $57 million. That same month, the company signed luxury retailer Vince Camuto-owned VCS Group LLC to a 42,748-square-foot, 10-year lease at 1407 Broadway, its Midtown Manhattan office and retail high-rise.
According to Colliers’ latest Sacramento Office Report, overall average asking rates rose to $1.90 for all classes, an increase of 4.4 percent year-over-year, while average asking rates for downtown Class A assets reached $2.91 per square foot, just 5.8 percent shy of the pre-recession peak of $3.08 in Q4 2007.
Image courtesy of JLL