Population growth and low vacancy increase Sacramento industrial demand

JLL Capital Markets closed the $26M sale of a triple-net-leased industrial warehouse property in a last-mile Sacramento location

JLL Capital Markets announced today that it has closed the $26 million sale of a 267,284-square-foot, single-tenant, triple-net-leased industrial warehouse at 5440 Stationers Way in Sacramento, California.

JLL marketed the property on behalf of the seller, Goldrich Kest. STAG Industrial acquired the asset.

5440 Stationers Way is in a last-mile location in Sacramento’s desirable McClellan Industrial submarket and has access to critical infrastructures, including Interstates 80 and 15 to aid in last-mile delivery to the 2.4 million Sacramento-area residents. The light industrial building is also seven miles from Sacramento McClellan Airport and within two hours of seaports and three intermodal rail facilities, allowing the tenant to serve the entire Northern California region and beyond.

The building was completed with concrete tilt-up construction with wooden trusses in 1990 and features a 30-foot clear height, ESFR fire protection system, 38 dock-high doors, one grade-level door, deep truck court, ample parking and low office finish. Essendant, a wholesale distributor of office supplies, has occupied the building for 27 years and recently renewed its lease.

With low interest rates, interest in industrial properties in Sacramento remains elevated, both among investors and owner-users. JLL Research’s United States Industrial Outlook – Q4 2020 report details that, as 2020 net absorption surpassed 1.9 million square feet and vacancy at 4.1 percent, the lowest of the Northern Californian markets, Sacramento remains an attractive option to both tenants and investors. JLL expects the Sacramento region to see that momentum carry over into 2021, as it is an affordable option to the Bay Area, coupled with robust labor.

The JLL Capital Markets Investment Sales Advisory team representing the seller was led by Senior Director Ryan Sitov, Senior Managing Director Mark Detmer and Associate Andie Fezell along with local market experts Executive Vice Presidents Mike Zimmerman and Sean Merold.

“The Sacramento region is seeing unprecedented demand from both users and investors,” said Sitov. “This is an excellent opportunity for STAG to grow their existing portfolio in the region.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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