Avistone Nabs Sacramento Industrial Park

LAGUNA NIGUEL, CA-Locally based real estate investment firm Avistone LLC has acquired Watt 80 Business Park, a 62,000-square-foot, multi-tenant industrial property in North Highlands, CA, for a price undisclosed to GlobeSt.com. GlobeSt.com has learned that the property was purchased from Highlands Industrial I LLC.

According to Daniel Culler, managing principal at Avistone, “At 91% occupancy, strong in-place cash flow and a purchase price of approximately 70% of replacement cost, the Watt 80 acquisition meets all of Avistone's strict investment criteria, which optimizes yield, return and risk. Presently, we are actively pursuing stabilized and value-add multi-tenant industrial projects priced from $4 million to $12 million, located in major and secondary markets within the western US.”

Culler tells GlobeSt.com, “Our plan is to perform a light renovation (paint and landscaping), stabilize the property at +/- 95% occupancy, increase rents at roll-over and hold for five years for cash flow.”

As GlobeSt.com reported in April, Karine Clark-Foreman, then newly appointed managing director of locally based Avistone Capital Corp., told GlobeSt.com, “The recent government announcement that Fannie Mae and Freddie Mac are to reduce their lending volume by 10% in 2013 is a mixed blessing to the market,” Clark-Foreman says she doesn't see the reduction having a huge impact on the multifamily arena, and in fact it offers other lenders the opportunity to provide capital for this still-healthy sector.