Manulife Sells Sacramento Office Tower for $117M
Manulife US Real Estate Investment Trust has sold 400 Capitol Mall, a 501,308-square-foot office tower in downtown Sacramento, Calif. The asset traded for $117 million. The seller is an entity related to Buzz Oates Real Estate, according to Sacramento County records.
The property last changed hands in 2019, when MUST purchased it for $198.8 million from Starwood Capital Group, according to CommercialEdge information.
MUST will use the net sales proceeds to repay a $130.7 million loan, with a maturity date set for 2025, by the end of this year.
The all-cash sale is part of the company’s recovery strategy, implemented to allow it to make early repayments of debt maturities and to mitigate risks amid the ongoing challenges in the U.S. office market, said CEO & CIO John Casasante in prepared remarks. After the deal, the REIT now owns nine properties in the country, totaling nearly 4.6 million square feet.
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The tenant roster includes Wells Fargo, Deloitte, WeWork, Cushman & Wakefield and Morgan Stanley among others, the same source shows.
Office building in downtown Sacramento
Also known as The Wells Fargo Center, the 29-story Class A+ office building came online in 1992 and features 34,000-square-foot floorplates, 13 passenger elevators, 20,000 square feet of first-floor retail space and 1,094 parking spots across five levels.
The amenity package includes a fitness center with sauna and locker rooms, a tenant lounge, a conference room, a common lobby, an outdoor deck with a heated swimming pool, an on-site Italian restaurant, concierge and 24-hour security services. Additionally, the high-rise is the only building in Sacramento with a WiredScore Gold certification.
Located in Sacramento’s central business district, the property has access to Interstate 5, Tower Bridge and to multiple light rail and bus stations. Sacramento International Airport is some 10 miles northwest.
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