X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-KBS Real Estate Investment Trust I has acquired two office buildings in Sacramento, CA, totaling 105,000 square feet. The public, non-traded REIT paid $20.6 million for Venture Oaks, a five-story building and an adjacent single-story building at City Gate Plaza, a four-building office park fronting Interstate 5 in the Gateway Center suburban office district of the South Natomas submarket, two miles north of Downtown Sacramento. The seller was A&B Properties Inc., the real estate subsidiary of publicly traded Alexander & Baldwin Inc. of Honolulu.

The five-story building totals 101,303 square feet and is located at 2450 Venture Oaks Way. The single-story building, at 2460 Venture Oaks Way, totals 3,700 square feet and houses a deli and fitness center. The buildings were completed in 1990 are 100% leased.

Todd Eschelmen and Craig Brinitzer of Cornish and Carey Commercial represented A&B in the purchase. KBS represented itself.

A&B president Norbert M. Buelsing called the sale price for the two-building portfolio “favorable” and “reflective of the economic value of a recent lease extension for a major tenant, as well as the underlying appreciation of real estate values in Sacramento” during the company’s ownership.

The California State Compensation Insurance Fund occupies 87% of the multi-story building. Other tenants include Variable Annuity Life Insurance and EHealthline.

“We plan to put the proceeds from this sale to work, on a tax-deferred basis, in replacement properties that have a higher potential for appreciation,” Buelsing said.

The sale gives KBS three properties in the Sacramento region. It also owns the 127,085-square-foot University Park office complex in Sacramento’s Campus Common area, which it acquired in July, as well as 9815 Goethe Road in Sacramento and 3870 Kilgore Road in Rancho Cordova.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.