A Bay Area investment company hit a home run two years ago, buying a vacant Rancho Cordova office park and quickly signing a blue-chip tenant to take all the space.
Now Strada Investment Group of San Francisco is hoping for another dinger with a second big acquisition in the same Prospect Business Park area. In a deal that closed last week, it paid about $7 million for the vacant 108,000-square-foot building at 3068 Kilgore Road, near Sunrise Boulevard.
“They had pretty good success out there and now they’re giving it another shot,” said Craig Brinitzer, executive managing director with Newmark Cornish & Carey, who handled both sides of the off-market deal with partner Todd Eschelman.
Strada now is looking for buyers for the two buildings it bought there in 2014, at 3300 Zinfandel and 10834 International drives, which are both occupied by Blue Shield of California.
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Scott Stafford, one of Strada’s founding partners, said the earlier deal strengthened his company’s resolve to acquire buildings with plenty of vacant space.
“There are very few large blocks of space available where the owner is ready, willing and able to invest in the property and meet the needs of an institutional tenant,” he said in an email.
He said the company has no tenant in mind yet for the space but said the region has many companies with “scattered real estate footprints” that would like to consolidate operations into a single location.
Brinitzer also said the property is going to be attractive to a large user.
“It’s one of maybe three buildings (in the Sacramento metro market) that can accommodate a tenant of over 100,000 square feet, so that’s what we’re looking for now,” he said.
Stafford said his company will be upgrading the building’s heating and air conditioning systems, renovating the lobby and expanding parking.
The building’s former owner was a partnership, Fordyce Investment Co., that had owned it for more than 15 years, Brinitzer said. It was occupied until last summer by Sprint.