Dos Rios Business Park Trades Hands

SACRAMENTO, CA-The 56,935-sf Dos Rios Business Park here has changed hands for $4 million. An LP led by local investor George Johnson purchased the two-building flex-office development from locally based Carson Development Company. Located on 3.8 acres at 250 Dos Rios Ave., the 22-year-old development is fully leased to six tenants, though leases representing 20% of the building are set to expire next year. The largest tenant is the state of California, which occupied 29% of the leasable space. Other significant tenants include Sherwin Williams with 21%, Brownie’s Blueprints with 20% and Sutter Printing with 17%.Johnson’s Dos Rios Park LP financed the acquisition with a $3-million, 10-year loan from Morgan Stanley Mortgage Capital that was sourced by Jim Rice and Brenner Daniels with the Portland, OR office of GMAC Commercial Mortgage. The loan has a 25-year amortization schedule and an interest rate of 6.05%. Daniels tells GlobeSt.com that to seal the loan deal the borrower had to put up a $415,000 letter of credit. The LOC mitigates the fact that the state of California’s 10-year lease, which expires in 2009, has a 60-day out provision that starts in 2007 and runs through the end of the lease. The money from the LOC would be used to demise the space into smaller chunks and improve the space for new tenants should the state decide to leave prior to the end of its lease.Johan Otto, president of Carson Development, was not available on Thursday for comment on the sale.