Seagate, Cottonwood Pay $55M for Sacramento Office Asset

925 L St.

A partnership between Seagate Properties and Cottonwood Group has acquired 925 L St., a multi-tenant office building totaling 168,844 square feet in downtown Sacramento, Calif. A joint venture between Soma Capital Partners and Hazelview Investments sold the asset for $55.1 million. JLL represented the seller and procured the buyer.

According to CommercialEdge data, the property previously changed hands in 2017, when it was acquired for $45.5 million and was subject to a $32.2 million loan originated by Wilmington Trust.

An office building next to the State Capitol

Completed in 1972, the office building rises 13 stories at 925 L St., adjacent to the State Capitol, featuring retail space on the first floor and floorplates averaging 12,500 square feet. Tenant amenities include a conference facility, bicycle parking and a 925L-branded bicycle share program available during office hours. The building was 94 percent leased to public and private tenants at the time of sale.

The property underwent cosmetic renovation in 2001, CommercialEdge data shows. Full renovation was completed in 2018, including lobby and exterior signage, having achieved LEED Gold certification.

The office building has major exposure to 10th and L streets in downtown Sacramento, just two blocks from Hyatt Regency and Sheraton Grand hotels, the Sacramento Convention Center and the Community Center Theater. Tenants have access to numerous dining options on K Street, around the Golden 1 Center.

Senior Managing Director Rob Hielscher, Senior Director Erik Hanson and Director Nick Deaver of JLL Capital Markets negotiated on behalf of the seller. In August, a JLL team assisted Blue Shield of California in the sale of a Class A, 244,983-square-foot office building in Dorado Hills, Calif., for $49.3 million.