Sacramento Office Market Set to Sizzle
Acquisition of Emerald Tower at 300 Capitol Mall by The Evergreen Company could be first in a hot summer of downtown office deals
SACRAMENTO, CA.—July 2, 2019 – Temperatures are returning to normal this week in Sacramento following an uncharacteristic summer cool down, but interest in the city’s downtown office market continues to sizzle. In fact, JLL Capital Markets’ successful closing late last week of the sale of The Emerald Tower, on behalf of a joint venture between Hines, the international real estate firm, and Sterling Equities, could signal a busy summer of transactions in the state Capital.
A joint venture between The Evergreen Company and UAIC Development Corporation purchased the 385,844 square foot Class A building, which is currently 91.8% leased.
Michel Seifer, Rob Hielscher, Erik Hanson, Cheri Pierce and Michael Manas of JLL represented the sellers.
“Investors continue to warm to downtown Sacramento’s tightening office market where trophy assets can still be purchased at per square foot prices well below those seen in San Francisco and even Oakland,” said Michel Seifer, JLL. “We are seeing strong interest in a number of other offerings across the downtown Sacramento office market right now,” he added.
Built in 1985, the 18-story Emerald Tower is certified LEED Platinum and boasts a roster of credit-worthy, long-term tenants, including the headquarters of the California State Controller’s Office, Department of Insurance and Public Utilities Commission. It’s location on Capitol Mall just one block from Downtown Commons (DOCO) and the Golden 1 Center, excellent nearby transportation and appealing view corridors makes it a popular tenant location.
A steady growth in office leasing momentum over the last several quarters has more investors scouring the market for stabilized assets as well as more opportunistic acquisitions. Construction of new office product in the downtown market has yet to get underway and this, combined with strong employment growth, is resulting in an upward trend for office rents.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2017 alone, the firm’s 2,000 Capital Markets specialists completed $170 billion in investment sale and debt and equity transactions globally.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.