A family investment trust out of Emeryville has purchased the 135,885-square-foot Raley’s bakery complex in West Sacramento for nearly $10 million.
Ben Prater, an associate with Colliers International in Sacramento, said Libitzky Property Cos. paid $9,675,000 to purchase the sprawling complex at 3925 Seaport Blvd. from Port View Investors LLC in Chico.
Prater co-brokered the deal, which closed Thursday, with Colliers colleague John Banchero.
The bakery serves the more than 100 stores operated by West Sacramento-based Raley’s in Northern California and Nevada. Prater said four years remain on the current lease, subject to future renegotiation or extension. He said Raley’s makes monthly lease payments.
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Prater noted that Raley’s had first right of refusal to buy the property, but opted not to do so. Raley’s spokeswoman Nicole Townsend confirmed that Raley’s leases the site, adding that the privately held grocer does not publicly disclose terms of its leases.
In 2003, Chico Parkview Investors reportedly paid Panattoni Development Co. $11 million for the bakery. Ownership was subsequently transferred to Port View. The bakery complex was built in 2001.
Officials said the 2003 sales price of about $81 per square foot made it the most expensive industrial building, on a per-square-foot basis, ever sold in the capital region. However, that price was obtained on a then-2-year-old building during comparatively high-flying times well before the recession.
A shorter-term lease also played a role in the latest change-of-ownership deal.
Prater said the current deal “was a good price for both the buyer and the seller. If the lease were longer, then it could have fetched closer to the $81 (per square foot). But due to the short lease, the buyer needed to mitigate some risk with the higher return.
“This transaction represents that there is cash coming into Sacramento, and investors are willing to take some risk if the returns are justifiable,” he said.
Raley’s oversees more than 120 Raley’s supermarkets, Bel Air Markets, Nob Hill Foods and Food Source stores.