Description
CBRE is proud to offer the opportunity to acquire Micron Corporate Center, a stabilized institutionally-owned office building in Sacramento, California.
This handsome, well-maintained asset sits on the western end of the Highway 50 Corridor, one of the most successful suburban office submarkets in the Sacramento Metro. The building is less than 15 minutes from the Central Business District and all city, county, state and federal government offices. It is five minutes from the confluence of Highway 50 and Interstates 80 and 5 allowing for rapid transit to all points on the compass. The complex is surrounded by housing of all types and proximate to a variety of retail amenities. Perhaps most importantly for the Subject’s occupants and their clients 9616 is located next to Sacramento County’s Branch Center Complex which hosts several key county departments, administrative office and specialized human services facilities.
The asset is priced at $8,760,000 which equates to $125 per sq. ft. for 69,441 sq. ft. of improvements and a year one capitalization rate of 8.9%. Of the building’s total footprint approximately 6,343 sq. ft. is available, offering an opportunity for a modest bump in annual revenue if and when this space is occupied. The balance of the building has long been leased to Sacramento County which recently initiated multiple expansions to accommodate growth and increased utilization of the facility.
Per CBRE’s Q2 Office Report the Highway 50 Corridor consisted of 11.39 million sq. ft. with an availability rate of 29.7%. Year-to-date net absorption was positive 128,000 sq. ft. By way of contrast, the 9616 Micron Avenue is 91% leased, clearly outperforming its regional peer group. The building’s location, condition and capable management have allowed it to achieve economic success in what may otherwise be described as a challenging environment.
