G REIT Acquires Sutter Square Galleria

SACRAMENTO, CA-Sutter Square Galleria, a 61,000-sf shopping center-turned-commercial office development here has been sold for $8.2 million to G REIT, a public but un-traded real estate investment trust managed by Santa Ana, CA-based Triple Net Properties LLC.

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.