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Eureka Corporate Plaza Trades at $38M

ROSEVILLE, CA-The Miller Family Cos. acquires three buildings here totaling about 200,000 sf, including the two-building, 143,000-sf Eureka Corporate Plaza.

By Brian K. Miller | Updated on April 19, 2005

ROSEVILLE, CA-The Miller Family Cos. has put its foot in the door of the local office market with the purchase of three buildings here totaling about 200,000 sf. The combined purchase price is $52 million.In the larger of the two transactions, the Calabasas-based company paid $38 million for the two-building, 143,000-sf Eureka Corporate Plaza. Miller Family Cos. also acquired an adjacent 51,000-sf building (1544 Eureka Rd.) for $14 million.Eureka Corporate Plaza includes two three-story buildings at 1504 and 1512 Eureka Rd. The asset was sold by Wong Family Investors, LP and Ritchie Family Partners, LP, both of Sacramento, who acquired the project form the original developer just two years earlier for an estimated $30 million. The sellers represented themselves in the transaction. Miller Family Cos. was represented by Heath Charamuga and Erik Neese of Grubb & Ellis’ Sacramento office.Charamuga tells GlobeSt.com that the buildings are about 95% leased. Charamuga says there is some near-term rollover by smaller tenants, but given the tightness of the market, it should quickly result in a new tenant paying a higher rent. He declined to confirm the capitalization rate on the deal, which other local sources tell GlobeSt.com is in the 6% range.”Because of a lack of available land, buildings are trading at astronomical prices–EOP acquired a 100,000-sf building less than one mile away for $270 per sf–but the rents continue to support the sale prices, which continue to climb,” Charamuga says. “When any building in Roseville hits the market, it has multiple offers; by acquiring Eureka Corporate Plaza in an off-market transaction, I believe the Miller Family actually got a pretty good deal on the building.”In a related transaction, Miller Family Cos., acquired an adjacent 51,000-sf building for which little information was immediately available Monday afternoon.

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