Demographic Trends Lure Catalyst and SIII to Industrial in Sacramento
Catalyst Real Estate and SIII Investments have been investing in Sacramento for over 30 years, with the latest acquisition involving the buy of a 402,348 square foot Highway 50 industrial portfolio for $51 million.
Ari Blum, president of Catalyst, told GlobeSt.com that the demographics are making the market attractive now. According to the Brookings Institution's 2012-2022 Metro Monitor project, out of the 54 very large metro areas in the US with populations over 1 million, Sacramento ranks 15th for overall growth and 7th for job growth at young firms.
JLL arranged the deal, with Senior Managing Director Jordan Angel, Director Spencer Bergthold, Senior Analyst Andrew Deaver and Analyst Sam Kobrine representing the borrower.
“After several years of rapid expansion, Sacramento’s industrial market is entering a period of recalibration,” Crexi said in a 2025 report.
“While new supply has outpaced demand in recent quarters, tenant interest is beginning to pick up once again. Submarkets with limited construction activity continue to show steady performance, reinforcing the value of well-located assets. As the region works through its current pipeline, all signs point to a return to balance, with long-term growth potential still intact."
The portfolio acquired includes Franklin Business Park (158,468 square feet), Gold River Business Park (66,970 square feet), Skyway Business Park (151,935 square feet) and Sunrise Gold Business Park (24,624 square feet). All are along the East-West corridor that connects Sacramento with South Lake Tahoe.
The portfolio comprises shallow-bay assets with significant conversion upside.
Nationwide provided the financing for the 19-building deal. It is currently 92% occupied, with 140 tenants in suites ranging from several hundred to 15,000 square feet, averaging approximately 2,800 square feet per suite.
Its diverse tenant mix includes construction and home improvement companies, light manufacturing and assembly operations, warehousing and distribution, automotive-related businesses, service-based businesses and creative and artisanal enterprises.
Sacramento International Airport is within a 30-minute drive, while the Port of Stockton, a major inland deepwater port, is approximately an hour away via Interstate 5.
SIII's Sacramento portfolio also shows 5753 Auburn Blvd, an industrial site offering over 32,000 square feet of rentable space with 25 tenants.
Source: GlobeSt/ALM