Commerce Business Park
165 – 193 Commerce Circle, Sacramento, CA
Commerce Business Park is a four-building warehouse/light industrial project situated in a prime Sacramento location, offering immediate access to Interstates 5 and 80, and state highways 99 and 160. The Company acquired the project from a large industrial REIT that was liquidating non-core assets it had acquired in a merger. The project suffered from significant deferred maintenance, mismanagement, and rents that were well below market.
The Company re-roofed and painting the buildings, re-surfaced the parking lot, and made a number of other physical upgrades to the project. To allow the buildings to be sold individually and capture the break-up value of the portfolio, Company negotiated lease buyouts with tenants representing 62% of the project’s leasable area, and recorded a reciprocal easement and maintenance agreement. The Company sold two buildings approximately 4 months after acquiring the project, a third building in 6 months, and the fourth building in 11 months.