SACRAMENTO-DivcoWest has completed the purchase of Prospect Green, a 642,262-square-foot property portfolio consisting of six class A office buildings. The purchase was made on behalf of Market Street Capital Partners, a real estate investment fund sponsored by DivcoWest. The Prospect Green portfolio contains six class-A office properties including a six-story office tower and five mid-rise buildings.
The six-story building, One Capital Center, was developed in 1989 and is one of the only office buildings in the community visible from nearby Highway 50, a major business thoroughfare in South Sacramento. The purchase also includes a one-acre development site.
Developed in phases between 1990 and 2001, the Prospect Green buildings all sit within a campus featuring a 2.5-acre central park. Occupancy in the park is approximately 70% and includes a major national tenants including Barclays, NEC, Pearson, Allstate and Aerojet.
Although price and terms were not disclosed, an unidentified source not involved in the deal tells GlobeSt.com that although they didn’t know what One Capital Center went for, the other five properties came to a total of approximately $55 million.
The Prospect Green portfolio is located in the heart of the seven million square foot master planned community known as Prospect Park. The first buildings in the park were constructed in the 1980s and development has continued to expand there to include significant retail, residential and commercial uses. Prospect Park has become a recognized destination for tenants requiring class A amenities in a corporate campus setting along the Highway 50 corridor.
“This is our first purchase in the Sacramento area but this market has long appealed to us because of its solid base of government, education, and technology that attracts nationally recognized tenants,” said Sam Hamilton, DivcoWest Director of Acquisitions. “For our investors, we see solid long term growth, strong tenant interest and an asset which is exceptionally well located in its market.”
In Mid-August, DivcoWest acquired 11 Beacon Street, a 147,751 square foot, 11-story office building sitting atop Boston’s historic Beacon Hill. Since the beginning of the year, the investment real estate company announced the completion of three large leases in its office assets in Boston and San Jose, CA totaling more than 300,000 square feet.
As GlobeSt.com previously reported, the 518,000-sf Prospect Green office campus and the 123,741-square-foot One Capital Center office building changed hands to the new ownership joint venture of JPMorgan Asset Management and Lowe Enterprises. The seller at that time was Lewis Trust Group.
Prospect Green was developed between 1990 and 2001. Building I is four stories and 126,816 square feet; building II is two stories and 70,065 square feet; building III is three stories and 100,308 square feet; building IV is three stories and 102,840 square feet, and; building V is three stories and 17,940 square feet. The buildings surround a 2.4-acre park. Also included in the transaction is a one-acre parcel that can be developed.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
