The "G" in G REIT stands for government, as the REIT focuses on buildings with long-term government tenants as anchors. In this case, that tenant is UC Davis Extension, which is committed to leasing 18,000 sf in the development through 2011. Other tenants in the 96% leased property include John Robert Powers, Blockbuster, H&R Block and Chicago Title.
Jon Skaalen of Triple Net Properties represented G REIT in the transaction. Bill Palmer and John Sedar of CB Richard Ellis represented the seller, Stuart Rubin of Rubin Pachulski Properties LP. Skaalen tells GlobeSt.com that the property is a former specialty retail center that failed and was repositioned such that the upper floors of the three-story property were converted for use as office space.
Sutter Square, located at 2901 K St. in Midtown, is the 11th property to be included in G REIT's portfolio of multi-tenant office properties. G REIT's typical hold is three to five years, says Skaalen.
In August, GlobeSt.com reported that G REIT paid $24.2 million for the 130,805-sf North Pointe Corporate Center in suburban Sacramento. Located at 4330 Watt Ave., the property is 68% occupied by the Internal Revenue Service. Quest Education Corp., a division of Kaplan Inc., leases another 14% of the building. The building is 95% leased, with no leases expiring during the next 12 months.
At that time, a Triple Net Properties executive told GlobeSt.com that the firm will manage the property for a fee equal to 5% of the gross income of the property in addition to compensation for property-level services, including leasing fees, loan origination and servicing fees and property tax reduction fees.
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