Located at 1750 Howe Ave., the B-2 bomber-shaped six-story office building was built in 1985 with 30,000-sf floor plates and skinned with black glass and ceramic tile. The asset is approximately 90% leased; anchor tenants are Liberty Mutual, which occupies approximately 35% of the building, Bank of Sacramento, CBS Radio, and Landmark Healthcare. The full-service asking rent for space in the building is $2.25 per sf per month. Todd Eschelman of Cornish & Carey has the leasing assignment.
Abbey Co.'s director of acquisitions Brian Mericle tells GlobeSt.com the company is looking to acquire a couple of more assets in Northern California to complement its purchase in Sacramento. In the Landmark, Mericle says the company has a one-of-a-kind building across from a retail center in the well-regarded Point West office submarket. On the performance front, he says "nearly half" of the building is leased through 2012.
"The main attraction we had to this asset was its strong location, unique architecture and excellent visibility," Mericle says. "The building is called the Landmark for a reason."
Abbey is planning a "fairly extensive" capital improvement program to update some of the older systems that are currently in place, with the goal being "maintaining the buildings historically strong occupancy," Mericle says.
With regard to the city and the price, Mericle says the Sacramento market is not overheated like most Southern California markets. "A comparable building in a Southern California market would have traded for $275 to $350 per sf and had average in-place rents of $2.70 to $3.20 per sf [full service gross]," he says. "We were able to purchase this asset for just under $200 per sf with average in place rents of $2.00 per sf."
Bob Gilley and Steve Hermann of CB Richard Ellis had the disposition assignment.
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