Sterling American Property Inc., in a joint venture with Hines, has announced the $130 million (approx. €162 mln) acquisition of 300 Capitol Mall in Sacramento, CA.
300 Capital Mall,
The 18-story, 383,238-ft², Class A office property is home to several government agencies including the California State Controller's Office and the California Department of Insurance. This acquisition marks Sterling's first major investment in Sacramento and the seventh Northern California acquisition for the Sterling/Hines joint venture since 2005.
Designed by DMJM and completed in 1984, 300 Capitol Mall is known as one of Sacramento's most desirable office locations due to its proximity to the state capitol and other government offices. The building is currently 98% leased.
"We feel the demand for commercial space in Sacramento will continue to accelerate as the size of government agencies and local business expands," said Tarak Patolia, Head of Acquisitions for Sterling American Property, Inc. "By acquiring this terrific asset at well below replacement cost, we are in a good position to benefit from the strong demand and increase in rental rates within the market."
Hines will assume the on-site property management and leasing responsibilities for the building.
"We are looking forward to working closely with our partner in enhancing the value of this superb asset by effectively managing the mid-term lease rollover of several large tenants," said Hines Vice President, Cameron Falconer. "We believe strongly in the upside potential of the Sacramento market, and feel confident about 300 Capitol Mall."
300 Capitol Mall features high-quality construction with efficient and functional floor plates to accommodate an extensive range of tenant requirements. Amenities include an attached 761-car garage as well as expansive city and river views. The property offers convenient access to downtown Sacramento's emerging 24/7 urban amenity base including abundant retail, residential and cultural offerings as well as an extensive transportation infrastructure that provides direct links to communities throughout Northern California.