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4/19/24
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Chavez Management Group Inc closed on the acquisition of a Sacramento office asset, paying $44.5 mil for Natomas Corporate Center, a two-building, 419k sf ($106/sf) property in the city’s South Natomas submarket. The Class A, LEED-certified property is situated on 21 acres at 2020 W. El Camino Ave and 2555 Natomas Park Dr, just five minutes from the downtown core. It provides ample parking, common areas and outdoor spaces.
Built in 2009 and totaling 319.3k sf over 12 floors, 2020 W. El Camino Avenue is a landmark building in the Sacramento office market. The first and most prominent of its kind in South Natomas, the property features unique and contemporary architecture. The building is currently 100% leased to six tenants including the Department of Housing & Community Development, Lewis Brisbois Bisgaard & Smith LLP, and the Department of Health Care Access and Information.
2555 Natomas Park Drive was built in 2020 and totals 86,9k sf over three stories. It mirrors its companion building and is the only contemporary market asset to be built ground-up in the greater downtown area in nearly 20 years.
Natomas Corporate Center is located off Garden Highway with convenient access to Interstates 5 and 80. It also features prominent building and monument signage, and is surrounded by numerous retail, dining, and nightlife, bolstered by an accessible and safe environment.
Avison Young Principal Matt Havelock, CCIM, SIOR, and Vice President Max Kelly represented the seller, Bannon Investments Ltd. The buyer was repped by Michael J. Anthony, CCIM, of MJA Equity Investments.
“Chavez Management Group acquired these two best of class assets at well under replacement value, with the goal of capturing the “flight to quality” market, which is expected to occur over the next 36 months,” said Havelock.
“The local office market has seen improvement in the way of increased velocity in tenant activity and new office transaction requirements during the past two quarters,” said Havelock. “Office vacancies remain a concern, especially in the CBD as well as Rancho Cordova. However, compared to the challenges endured in the Sacramento region office market during 2021 and 2022, several submarkets are showing significant signs of improvement, including, Folsom, Roseville, El Dorado Hills and South Natomas. These markets appear to be headed towards a healthy volume of leasing activity over the next three quarters.
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