Bannon Investors is extending its bet on south Natomas as an office market, submitting plans to the city of Sacramento for a three-story building near the company’s signature Gateway 2020 structure.
The newly proposed building, 90,000 square feet, would be on the northwest corner of where Natomas Park Drive meets West El Camino Avenue. Tom Aguer, principal and managing director at Avison Young’s Sacramento office, said preleasing for the building is underway.
The site of a proposed south Natomas office building.
Enlarge
The site of a proposed south Natomas office building.
BEN VAN DER MEER | SACRAMENTO BUSINESS JOURNAL
“We’ve got a six-acre site sitting here, so we figured, why not get a building started?” Aguer said. The building won’t be under construction until there’s a healthy amount of preleasing, he said. But if the project gets through entitlements in time and that prior leasing comes through, construction could start next spring and the building ready for tenants in about a year.
“Our vacancy is squeezing down, but more importantly, our big blocks are disappearing,” he said. That’s not only true in downtown Sacramento, but even in a “relief valve” submarket like south Natomas, where spaces of 100,000 square feet or more are also increasingly scarce. JLL Sacramento listed a vacancy rate of 3.4 percent for class A buildings in south Natomas during the third quarter of 2016.
For potential tenants, the building at Natomas Park and West El Camino offers free parking and proximity to I-5, downtown and Sacramento airport, Aguer said. There’s also a bus stop on the corner and the Natomas Racquet Club within a short walking distance.
With a small cafe planned to open in Gateway 2020, Aguer said, the future building’s prospective tenants would also have meal options close by.
Brendan Koon, of Vitae Architecture, is the architect for the project. Vitae’s local projects include Parkshore Plaza I and II in Folsom and Roseville Highlands in Roseville.
This is Bannon’s second move to increase its profile in Natomas this year, with Gateway 2020 now virtually full. This summer, preleasing began for an entitled office development by Bannon west of Interstate 5 and south of West El Camino. That development could take the shape of either a 12-story building like Gateway, or a three-building complex, according to leasing group Avison Young.
Aguer said activity is good for both that and the newly announced proposal, but he could not confirm any leases as of yet.
Ben van der Meer covers real estate, development, construction, water issues and the business of sports.
Article and photography provided by: http://www.bizjournals.com/sacramento/news/2016/10/27/exclusive-new-office-building-proposed-in-south.html
Capital City Real Estate Magazine 