Graceada Partners continues Point West investment with $10.22 million buy

Originally Published at Sacramento Business Journal

With an eye toward a post-Covid-19 office environment, one investor has picked up a second Point West building in recent weeks.

Modesto-based Graceada Partners bought 1451 River Park Drive, a 72,304-square-foot building, for $10.225 million on Nov. 30, according to property records.

"There's ample free parking, and it caters to small businesses," said Joe Muratore, a co-founder and principal at Graceada. "We think that's a good bet."

Currently 94% leased, 1451 River Park Drive has 30 tenants, occupying an average of around 2,500 square feet each. Muratore said that gives his group more flexibility to meet what tenants need, whether it's more or less space.

Muratore said Graceada bought the building for $141 per square foot, or about $8 less per square foot than a comparable building. "Our pricing reflects a more challenged office investment market," he said.

Graceada plans to spend about $300,000 in the short term on building improvements such as common area upgrades, outside signage and new paint, he said.

Property records show 926 J Street LLC as the previous owner, with a San Francisco address. A message left for the previous owner was not immediately returned Wednesday.

Brokers from Cushman & Wakefield's Sacramento office were involved in the sale.

Built in 1978, the two-story building is on a 4.39-acre parcel. Earlier this year, Graceada Partners bought a nearby Point West office building, 1651 Response Road, for $4.08 million.

In all, Graceada Partners has bought five Sacramento region properties in 2020, totaling $72 million. Muratore said his firm is actively involved in buying more, including one in contract in Folsom.