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8/31/26
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A private investor in a 1031 exchange paid $4 mil for a free-standing, single-tenant 10.7k sf ($374/sf) building in Sacramento leased to American Dental Companies (ADC). The property is located at 905 Secret River Dr, west of I-5 and just south of Florin Rd.
Built in 1980 and recently renovated, the American Dental Companies building on Secret River Drive features modern layouts, high-end finishes, and state-of-the-art dental equipment. ADC maintains a doctor-led, private practice feel while providing the advantages of a larger organization. Their model empowers clinicians to lead while benefiting from centralized resources, creating high tenant satisfaction and long-term practice loyalty.
The property is in a highly desirable residential pocket of Sacramento and benefits from proximity to major hospitals, outpatient clinics, dental specialists, and medical office corridors, creating consistent referral traffic and daily patient flow. The surrounding medical ecosystem enhances long-term performance and supports the tenant’s continued success.
905 Secret River Drive represents the third upleg in the investor’s strategic 1031 Exchange, along with the acquisitions of an AutoZone in Bakersfield, California, and a multi tenant retail center in Temecula, California. The exchange allowed the investor to transition out of a highly management intensive shopping center in Walnut, California—an asset with nearly 15 predominantly mom and pop tenants and substantial operational friction, including significant lease rollover, deferred maintenance, tenant downtime, and recurring leasing commissions and capital expenditures.
Progressive Real Estate Partners Senior Vice President and Managing Director Greg Bedell represented the buyer. Daniel Solomon of Kidder Matthews represented the seller, a private investor. According to Bedell, the buyer was attracted to American Dental Companies’ long term, 10 year absolute NNN lease, location within a high income trade area, and the below market, easily replaceable rent.
“The exchange was designed to fundamentally reposition the client's portfolio,” Bedell noted. “Rather than simply replace one shopping center with another, we used the opportunity to diversify into three smaller assets across multiple Southern California markets, improve tenant credit, extend lease duration, reduce rollover exposure and significantly reduce the day-to-day management burden.”
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