REAL ESTATE NEWS

SACRAMENTO CHECKS ALL THE BOXES FOR MEDICAL ACQUISITIONS

Published on Friday, November 20, 2020

A 14,820-square-foot DaVita Kidney Care facility at the College Square Shopping Center was subleased to DaVita in 2019 after the merger/acquisition with Rite Aid, and was recently acquired by Nazareth Enterprises.

 

SACRAMENTO—Built in 2009 as a Walgreens, the 14,820-square-foot DaVita Kidney Care facility at the College Square Shopping Center was subleased to DaVita in 2019 after the merger/acquisition with Rite Aid. DaVita recently completed a total remodel of the property at 8275 Bruceville Rd. and subsequently relocated its Sacramento facility to this site, more than doubling its previous location’s operations.

Nazareth Enterprises Inc., a San Mateo-based investment firm, recently acquired the facility for $11 million.

“We were particularly interested in this property, both due to its solid revenue stream and its high-trafficked, high visibility corner location,” said Nazareth president and CEO Mounir Kardosh. “Particularly during these uncertain times, we were pleased to find a quality location with strong fundamentals tenanted by DaVita, an industry-leading healthcare company.”

Nazareth has been targeting the medical space for the past two years, Kardosh says.

“We acquired a medical building with Kaiser and Petaluma Health as tenants in Rohnert Park, and two medical manufacturing facilities: one with Paramit in Morgan Hill, the other with Johnson & Johnson Vision in Milpitas and just last year, a medical office building whose principal tenants include Sacramento Heart and UC Davis Medical,” Kardosh tells GlobeSt.com. “While so many people look at retail that is ‘Amazon-proof’, these investments have shown to be ‘COVID-proof’.  So, adding DaVita to the portfolio meets our acquisition strategy, fits comfortably within our financial requirements and is a good addition to our Sacramento County portfolio.”

Nazareth was represented by Abe Matar of Landmark Realty. Tony Odom and Jonathan Hanhan of Compass Commercial represented the sellers. Financing was arranged by Mitch Zeemont and Tony Kaufman at Gantry Inc.

Sacramento was listed among the “Next 10 Tech Markets to Watch” in CBRE’s annual Tech 30 Report. The city and surrounding area benefit from proximity to the Bay Area tech industry, with a high quality of life and growth opportunities as the tech industry continues to look for talent hubs. In fact, the tech industry currently has some 15,373 positions in Sacramento.

In addition, CBRE reports that Sacramento has a 7.7% concentration of office employment and $24.36 average asking office rent as of the second quarter.