CT Realty Adds 93,000-SF Flex-Office Park

SACRAMENTO, CA-CT Realty Corp. of Newport Beach has acquired American River Commons, a 93,000-sf flex-office park here for $9.2 million. The 7.4-acre development consists of seven single-story buildings and has an average vacancy rate of 9%.American River Commons is located one mile from Downtown at 600-660 Bercut Dr., just east of Interstate 5 and north of Interstate 80. CT Realty acquired the property from the Andrew Alan Lewis Revocable Trust and the Simmons Living Trust, both based in Sacramento.CT Realty Senior Vice President John Valentine says five of the seven buildings are 100% occupied, with two of the five buildings occupied by a single tenant. Major tenants at the office park include the California Board of Corrections, the California Department of Health, Paracorps, Verizon and Training Towards Self Reliance. CT Realty plans to invest $700,000 to upgrade the exterior of the buildings with a contemporary paint scheme and new landscaping. Additionally, the company will resurface and re-stripe the property’sparking lots and replace the buildings’ HVAC units and lighting fixtures.In addition, Valentine says CT Realty is currently working with the city of Sacramento to create a planned unit development (PUD) whereby each building will have its own parcel. That will allow the buildings to be sold off individually in the future to users and investors.”It…offers great upside potential,” says Valentine. “The outlook for this business park is extremely positive due to the continued growth of Sacramento in almost every economic segment.”CT Realty represented itself in the transaction, with Jeff Boucher of TRI Commercial in Sacramento representing the sellers. Equity financing was provided by CT Realty Fund IV, with debt financing provided by Pacific Coast Capital Partners LLC.Prior to American River Commons, CT Realty’s most recent Sacramento-area acquisition was its November acquisition of the Davis Commerce Center in Davis, CA. CT paid $4 million for the 59,000-sf business park. It was approximately 65% leased at the time.