In a deal that reflects institutional enthusiasm for Sacramento’s commercial real estate market, one of the investors in redevelopment around Golden 1 Center has joined with two big partners to acquire a prominent state office building in the downtown area.
JMA Ventures of San Francisco partnered with real estate giant Hines Interests and Oaktree Capital Management, a global asset management firm, to buy the 378,000-square-foot office complex at 1515 S. St., on the edge of the hot R Street corridor.
The twin-5-story buildings occupy a full block and serve as headquarters for the state Department of Corrections and Rehabilitation and for the state’s human resources department.
“Obviously we feel very good about the transformation of downtown Sacramento ... and we want to expand our interests there,” said Todd Chapman, JMA’s president and CEO, confirming the big acquisition.
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The deal also involves the purchase of two buildings in Rancho Cordova – at 10961 and 10971 Sun Center Drive – where Corrections also has offices.
Chapman declined to reveal a sales price and also would not confirm that Hines and Oaktree were involved in the deal, but said he “certainly knows them very well.”
JMA is a partner with the Sacramento Kings in a $300 million project to develop an entertainment district and 250-room Kimpton Hotel at what used to be Downtown Plaza, adjacent to the Golden 1 Center.
Chris Strain, an office leasing specialist with the Cushman & Wakefield brokerage firm, said the deal is particularly significant because of the continued presence here of Hines – a major investor in top-tier markets.
“It validates not only the health of the (local) real estate economy but the economy in general,” he said. Of JMA expanding its local presence, he added, “it’s great that a quality developer like JMA believes that strongly in the market.”
Representatives for Houston-based Hines and Los Angeles-based Oaktree were unavailable for comment.
The seller was another Hines entity that has owned the downtown property since 2005 and the 88,000-square-foot Rancho Cordova properties since 2006.
Temple’s gleaming new midtown coffee shop opened just six weeks ago and it already has achieved quite a distinction: It may be the city’s busiest java joint.
People lined up around the block to get in when the shop – decorated with a floor made from 500,000 pennies – opened at 6 a.m. on March 26. Those folks were looking to get a free mug.
But the crowds have persisted since then, with lines out the door, especially on weekends.
Cole Cuchna, Temple’s creative director, said new spots usually take time to generate a following but this one already is drawing as many people as the firm’s S Street store, which he said has been Sacramento’s most popular coffee shop.
“To have a brand-new store compete right away with the busiest coffee house in town is pretty cool,” he said.
Among the draws: Dessert pairings with some unusual coffees, including those from automated pour-over machines, Kyoto drippers and a nitro tap system. Others are attracted to the shop’s design features, including all those pennies, high ceilings and a vintage motorcycle.
The crowds may get a bit bigger later this month when the shop – at 22nd and K streets – has its grand opening party, with free food and drink and the introduction of two new regular menu offerings: affogato, made with hot espresso poured over gelato from Sacramento’s Divine Gelateria, and nitro-infused coffee floats.