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Capital Center II, III Trade for $93M

RANCHO CORDOVA, CA-The new owner of the 531,410-sf, 10-building portfolio is a client of DRA Advisors. The seller bought it in fall 2004 for less than $70 million.

By Brian K. Miller | Updated on July 18, 2006

RANCHO CORDOVA, CA-The Hines US Office Value Added Fund has sold a 10-building portfolio at Capital Center here to a client of DRA Advisors of New York for $175 per sf or $92.99 million, according to local industry sources. The fund acquired the property in September 2004 for $69.5 million and since upgraded common areas, mechanical systems, landscaping and parking lots.

Rancho Cordova is a suburb of Sacramento. Capital Center is located on White Rock Road near Highway 50. The portfolio, known as Capital Center II and III, is currently 87% leased to tenants including Bank of America, St. Paul Travelers, Delta Dental and the State of California.

A source at Hines confirmed the transaction for GlobeSt.com but declined to confirm the sale price or reveal the IRR for its investors. Hines SVP and fund manager David Congdon says that during its ownership of the property, occupancy improved by 20% and operations also improved. “We added significant value and realized exceptional investment performance,” he says.

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