Fully Leased Recently Renovated Sacramento Office Building Trades Hands
A Sacramento office building at 3900 Lennane Drive has been purchased by 2919 Prom R&T LLC for $6 million in a private deal facilitated by CBRE.
The two-story, 46,149-square-foot property was built in 1978 and has long-term leases, with a majority of the deals signed post-COVID, reflecting tenants’ commitment to the North Natomas submarket, according to Matt Post, first vice president at CBRE.
“The property also received capital improvements, including upgrades on the exterior, lobby, and corridors, which positioned the buyer for future growth,” he said.
Post and CBRE’s Sammy Cemo and Anthony DeLorenzo, in partnership with CBRE’s Tony Whittaker, represented a private seller in the transaction.
The property is fully leased with a weighted average lease term (WALT) of 5.2 years. More than three-quarters of the tenants (78%) signed deals after the pandemic.
The asset sits across from the Target-anchored Promenade at Gateway and Truxel Gateway and is adjacent to Interstate 80.
Sacramento Market Gaining Strength
Overall, the Sacramento office market is gaining strength, with available space declining for the fourth straight quarter and net absorption remaining positive, according to a Q2 report from Avison Young.
State government consolidations, steady job growth in healthcare and education and a pause in new construction fuel this momentum. Office job postings hit their highest level since 2022, while a drop in remote-friendly roles suggests a gradual shift back to physical workplaces.
Source: GlobeSt/ALM