Seagate Properties buys vacant West Sac industrial property, plans full rehab
By Ben van der Meer – Senior Reporter, Sacramento Business Journal
March 31, 2023
Seagate Properties Inc. has made its first Sacramento region industrial purchase, a former manufacturing facility at 2080 Enterprise Blvd. in West Sacramento.
The 208,000-square-foot building, currently vacant, sold in mid-March to San Rafael-based Seagate, according to brokerage JLL.
“It’s a value-add repositioning where we’re looking for a single tenant who can fill it,” said Mike Zimmerman, a managing director at JLL who helped broker the sale of what was most recently a Hunter Douglas blinds factory site. “It’s pretty much a clean slate.”
According to JLL, Seagate paid $19 million for the building, which includes 28,000 square feet of office. Mike Kamm, a principal with Seagate, said shifting to industrial investments reflects the market overall, with lending tighter but industrial still hot.
“This former Hunter Douglas property benefits from having a pretty extensive electrical system,” he said. “For someone who can use that, there would be a lot of value.”
Kamm said Seagate will spend $4 million to $6 million on additional property upgrades, including a new roof and dock equipment as well as new paint and lighting and addressing deferred maintenance. A side yard on the property will be paved to create space for additional storage, giving the property another attractive feature, he said.
With more office space than typically found in an industrial property, the owners will look for a tenant who can use it. Otherwise, that 28,000 square feet could be reduced, Kamm said. Both Kamm and Zimmerman said it’s also possible the building would be split up to house multiple tenants.
Records on real estate information website Reonomy show Bytheways Manufacturing Inc., with an address in Pearl River, New York, was the seller. No contact information for the seller was available.
Zimmerman said the building has been empty since previous tenant Hunter Douglas, a blinds manufacturer, consolidated operations to a site in Mexico.
West Sacramento is nearly built out on industrial land, so both investors and tenants may have to look at existing stock if they want to be there.
Such properties are also likely to cost 65 to 75 cents a square foot, compared to 85 to 90 cents a square foot for a new property, Zimmerman said.
In addition to Zimmerman, Sean Merold and Mike Metzger of JLL worked on behalf of the buyer. Ryan Sitov of JLL worked on behalf of the seller.
Seagate Properties Acquires Property in West Sacramento for $19M