Sacramento’s apartment rental market continues to grow
Downtown Sacramento’s Emerald Tower sold last week for $127 million to a joint venture between a Sacramento-based real estate and property management company and a local Native American group.
The 385,844 square-foot Class A high-rise sold to The Evergreen Company and the United Auburn Indian Community Development Corporation, according to a news release issued by broker JLL.
The sale price was calculated based on transfer tax records provided by the Sacramento County Clerk-Recorder.
The tower’s seller was a joint venture between Texas-based real estate firm Hines and New York-based Sterling Equities, according to the release.
“Investors continue to warm to downtown Sacramento’s tightening office market where trophy assets can still be purchased at per square foot prices well below those seen in San Francisco and even Oakland,” JLL’s Michel Seifer said in a prepared statement. “We are seeing strong interest in a number of other offerings across the downtown Sacramento office market right now.”
The Emerald Tower, located at 300 Capitol Mall, was built in 1985 and its tenants include the California State Controller’s Office, the Department of Insurance and the Public Utilities Commission. The building is 91.8 percent leased, JLL said.
JLL suggested that investors are eager to buy due to a lack of new downtown office construction, an increasing tenancy rate and rising rents.