Three downtown Sacramento buildings now under Pac West Office ownership
By Ben van der Meer – Staff Writer, Sacramento Business Journal Jul 27, 2018, 5:53pm EDT
Three downtown Sacramento buildings have been transferred to a new owner, signifying their move from improvement projects to stable investments.
The properties — 555 Capitol Mall, 1107 Ninth St. and 906 G St. — are now under the ownership of Pac West Office Equities LP, which is predominantly owned by entities affiliated with Sacramento-based developer and real estate investor Buzz Oates.
Dan Corfee, chair of the investment committee for Pac West, said the move both reflects the buildings’ status and simplifies their ownership structure.
“It allows a lot of economies of scale,” said Corfee, also president of Preferred Capital Advisors, which partnered with Buzz Oates and Rubicon Partners to buy the properties previously. “This is a transfer from a value-add stage to more of a long-term hold.”
After the partners acquired them, all three buildings underwent sizable renovations and upgrades, and then a campaign for new tenants. At 555 Capitol Mall, occupancy was about 50 percent in 2014 but is now well over 90 percent.
Property records show Pac West acquired the buildings from ownership entities under Rubicon and Buzz Oates earlier this month. Those records show Pac West paid $78.2 million for 555 Capitol Mall, $19 million for 1107 Ninth St. and $5.005 million for 906 G St.
Rubicon will continue to manage the properties. Current tenants should notice no changes, Corfee said.
As a result of the purchase, Pac West, formed last year, now has 31 properties totaling 2.4 million square feet of office space.
Corfee said Pac West now owns practically all office properties formerly under the Buzz Oates banner, as Buzz Oates continues to pivot toward its core business in industrial properties.
Pac West directors want to add to the portfolio, Corfee said.
“We made a commitment to do this with an intent to do it right and grow it,” he said. “It’s our goal to expand in a thoughtful manner.”