Global real estate manager Invesco doubled down on its strategy to invest in warehouse and logistics space in Sacramento, California, with the purchase of a speculative industrial development in the state capital.
Invesco paid developers Ridge Capital and Buzz Oates $61 million to purchase two completed buildings in the Southport Business Park in Sacramento, in an off-market transaction arranged by Colliers.
The deal included two industrial properties at 3065 Ramco St. and 3085 Mary Place. Invesco also agreed to buy a third building at the property once it completed construction. That building sold in October.
The purchase of the three buildings added to the Atlanta-based investment firm's portfolio and was selected as the winner of a 2023 CoStar Impact Award for sale of the year for Sacramento, as judged by a panel of real estate professionals within the market.
Invesco's focus on the Northern California industrial market has increased in recent years as demand among tenants and investors for warehouse and distribution space soared to unprecedented highs.
While the properties at the Southport Business Park were developed without tenant commitments in hand, they have since landed lease agreements with Safelite AutoGlass and Valley Relocation and Storage, both of which leased space in the Ramco Street building to bring it to full occupancy.
Global shipping technology company Pitney Bowes, CEVA Logistics and auto parts maker Kinte Future collectively leased space in the Mary Place property, which is also now fully occupied.
Invesco's Northern California acquisition spree has spread through Silicon Valley, the East Bay as well as the North Bay regions. In mid-June, it spent nearly $120 million to acquire a recently completed, five-building industrial park in Morgan Hill from developer Trammell Crow Co.
That deal closed shortly after Invesco shelled out more than $100 million to purchase a vacant six-building portfolio scattered across the East Bay island of Alameda. Two of those properties are now fully leased after national life science consultant Azzur Group signed a lease for the buildings in March.
About the project: The three-building Southport Business Park portfolio encompasses nearly 500,000 square feet of newly built warehouse space.
What the judges said: "As a former broker, establishing major sales of this magnitude create a benchmark for more institutional investment in the Sacramento region. It helps Sacramento become a primary investment market versus a secondary one," said Petrovich Development Co. President Paul Petrovich,
They made it happen: The Colliers investment sales team included Executive Vice Presidents Mark Demetre, Matt Lofrano, Brad Idleman, Robert Gilley, Andy Zighelboim and Associate Vice President Michael Hoo.