Laguna Creek Industrial

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Laguna Creek Ranch Industrial Park

3132 Dwight Road, Elk Grove, CA

Status: Completed 2007
Property Type: Industrial (Distribution)
Project Type: Acquisition and Repositioning
Size: 2 buildings totaling 297,972 square feet
Capital Structure: Balboa Income & Growth Fund, L.P., Private equity – internally managed discretionary fund

The Laguna Creek Ranch Industrial Park is a two-building industrial project located in Elk Grove, CA (a Sacramento submarket) that offers ready access to Interstate-5. The Company acquired the project off-market from Lincoln National Life Insurance Co, which had begun repositioning the project into a multi-tenant facility by demising the buildings into smaller suites. After acquiring the project, the Company continued repositioning it, and was successful in leasing it in smaller increments and securing higher rents than bulk space commanded, which increased the project’s current and pro forma capitalized value. After stabilizing the project, the Company decided to liquidate the property given aggressive market valuations at the time.