2101 Arena Boulevard
Location
Sacramento, CA
Property Type
Office
Square Footage
78,400 square feet
This two-story office was built in 1999 and substantially renovated in 2020 to accommodate the Department of Business Oversight. It is part of Sacramento’s rapidly growing North Natomas submarket and features Centene Corporation’s newest campus, which is estimated to bring 5,000 new high-wage jobs and 3,000 houses the the area.
Key Features
Well-located with easy access to the Sacramento International Airport, downtown Sacramento, and I-5, I-80 and SR-99
Sits on 5.9 acres, offers 312 surface parking spaces, and is 100% occupied
Purchase Price
$12,120,000
Invested Equity
$5,400,000
Target Return
16.1%
Hold Period
9 year
Going in Cap Rate
6.5%
2101 Arena Boulevard
our strategy
Graceada purchased the property with a new nine-year lease, with $17.40 per sf in-place and below market rent. Graceada plans to harvest cash flow and negotiate a renewal at market rent.
The current lease calls for annual rental rate increases averaging 3.0%. At approximately year seven of the nine-year lease term, Graceada will negotiate a lease renewal up to market rate.
Graceada will harvest cash flow between now and the last two years of the nine-year lease period.
