SACRAMENTO, Calif.--(BUSINESS WIRE)--Lowe Enterprises Investors (LEI), in joint venture with The Family Office (TFO), has acquired a portfolio of four office buildings totaling 316,771 square feet located in Gateway Center. Gateway I through IV are located at 2150 River Plaza, 2151 River Plaza, 2295 Gateway Oaks and 2520 Venture Oaks in the South Natomas area of Sacramento.
“The Sacramento area has been slowly recovering from the recession and is poised for growth,” said Brad Howe, co-CEO of LEI. “Over $1 billion of new projects and infrastructure are underway with another $4 billion of projects planned over the next five years. The new Golden 1 Arena, revitalization of the Railyards and new hospital signal stability and vitality returning to the local economy.”
Gateway Center is located along Interstate 5 near the Interstate 80 interchange, offering easy access to Downtown Sacramento and the Sacramento International Airport. Built between 1990 and 1998, the buildings are configured to accommodate medium and small space tenants and are currently 86% occupied by 64 tenants.
“The Gateway Center area offers a convenient and attractive alternative to Downtown Sacramento, where office rental rates have increased by as much as 25%,” said Peter Houghton, an LEI senior vice president. “Providing a quality environment for our tenants and maintaining the property’s competitive position in the market is our top priority.”
LEI and TFO plan to update the properties, including lobby renovations, landscape and lighting improvements, upgrades to conference rooms, common areas and outdoor gathering spaces.
LEI affiliate, Lowe, will operate the buildings and manage improvements to the property. The portfolio comprises Gateway I with 122,629 square feet, Gateway II with 66,186 square feet, Gateway III with 45,814 square feet and Gateway IV with 82,142 square feet. Lowe’s previous activities in the area include operating, and jointly owning, the One Capitol Center and Prospect Green buildings in Rancho Cordova.
The Gateway Oaks buildings are LEI’s third acquisition in Northern California in the past several months. The company acquired the 2581 Junction office building in San Jose and the 500 Ygnacio Valley Road office building in Walnut Creek in late 2016.
Peter Morgan led the LEI acquisition team. Los Angeles law firm Eisner Jaffe represented the Buyer for the acquisition and the joint venture. This is the first acquisition by the LEI/TFO joint venture with an objective to acquire several additional West Coast office properties in 2017.
About Lowe Enterprises Investors
Lowe Enterprises Investors (LEI) provides real estate investment management services on behalf of a select list of institutional and high net worth clients and partners through individually managed accounts, commingled fund relationships and targeted investment programs. The firm has been responsible for $7 billion in real estate assets, including commercial, hospitality and debt investments, since inception in the late 1980s. LEI has been a leading value-added investor through multiple cycles, employing equity and structured debt in its investment strategies.
Based in Los Angeles, LEI is an affiliate of Lowe, a national investment, development and management firm. Since inception in 1972, Lowe has acquired, developed or managed more than $28 billion of real estate assets. Lowe’s current activities in Northern California include the development of the Santa Clara Civic Campus for the County of Santa Clara, the development of a new 127 unit apartment and retail mixed-use project in Oakland. Lowe maintains regional offices in Northern California, Southern California, Denver, Philadelphia, Seattle and Washington, DC. For more information, please visit: www.leinvestors.com.
About The Family Office
The Family Office is a global investment manager that specializes in developing long-term wealth plans for individuals and families in the Gulf Region.