PCCP, LLC PROVIDES $36.6 MILLION LOAN TO BASIN STREET PROPERTIES FOR THE ACQUISITION OF A THREE-BUILDING, MULTI-TENANT OFFICE PORTFOLIO IN SACRAMENTO, CALIFORNIA
San Francisco, CA, September 13, 2018 – PCCP, LLC announced today it has provided a $36.6 million senior loan to Basin Street Properties for the acquisition of a three-building office portfolio. Totaling 346,000 square feet, the properties are located at 1545 River Park Drive, 1601 Response Road, and 1610 Arden Way in Sacramento, CA.
Situated across the American River from the Sacramento central business district, the portfolio is part of the Point West submarket, a location offering an excellent, proximate alternative to downtown Sacramento. All three buildings have been institutionally owned for the past 30 years. The three buildings are presently 72% occupied, while the submarket is 88% occupied, allowing for a value-add leasing opportunity in a strengthening market.
The Point West submarket of Sacramento consists of approximately 45 buildings totaling 2.5 million rentable square feet. The portfolio’s Point West location is about five miles northeast of the heart of Sacramento’s downtown and the California state capital buildings. Tenants generally locate in this submarket due to proximity to the convergence of Hwy 50 and I-80, providing ease of access throughout the Sacramento area. The location appeals to both public and private sector tenants who are seeking a Sacramento address with abundant parking, ease of access and substantial amenities.
“PCCP believes that this portfolio represents a compelling value-add investment. We are happy to once again provide a financing solution for Basin Street Properties, a repeat borrower with extensive leasing experience in Point West and the broader Sacramento market,” said Dorian Farhang, vice president with PCCP. The loan is PCCP, LLC’s second loan to Basin Street Properties in 2018, following the financing of the 518,000 sf White Rock Corporate Campus in Rancho Cordova, CA in January.