Offers Under Review for Capitol Towers

SACRAMENTO, CA-Offers were due by end-of-day Monday for Capitol Towers, a 415-unit Downtown multifamily development owned by Fowler Flanagan Partners of Marin County. The asking price was $55.2 million, which translates to a 6.6% capitalization rate.

Gary Roller, one of two Marcus & Millichap brokers handling the disposition, tells GlobeSt.com that he and the owner are now reviewing all offers and in the next few weeks will decide whether to accept one of the offers or continue marketing the property. Multiple offers have been received, he says, predominately from institutional players due to the size of the asset and a significant potential redevelopment play.

Capitol Towers spans nearly four city blocks Downtown. Originally constructed in 1965, the property has been substantially refurbished and updated in the past two years by FFP. The offering includes three parcels with a total of 292,579 sf of rentable space. The Tower building is a 203-unit, 15-story high-rise with six retail tenants on the ground floor. An attached garage is leased to a professional operator and is included in the sale. The Villas are situated on two additional parcels and include 206 condo-style units on 8.6 landscaped acres. Total occupancy is currently 92.5%.