Last week, Conrad closed escrow on four buildings at 1111 Howe Ave. and 1010 Hurley Way for about $10 million, he said in an email.
“These properties are ideal for service type businesses like the ones that are in the buildings,” Conrad said, explaining why he decided to buy them. “Examples of what I’m referring to are vocational colleges, salons and other similar uses like title companies, residential real estate companies, medical uses and other uses which desire some good visibility as well as convenient access in a central location.”
Howe Hurley Office Park dates to 1975. The park is about 70 percent leased, with Unitek College occupying about 18,000 square feet as the single largest tenant. Other large tenants include the California Horse Racing Board, Leung International, commercial real estate inspection firm Pacific Field Services and Sacramento Vietnam Vets.
Conrad said 1010 Hurley Way is remodeled and in good shape, so the focus will be making similar improvements to 1111 Howe and then marketing it.
In the last few years, many local office brokers have said there’s a persistent lag in leasing older properties, partially because many of them are all but obsolete or in less desirable areas for workers today.
While he said he’d acknowledge that’s an issue for some properties, Conrad said that Howe Hurley Office Park has a reasonably modern design by comparison.
“Also, to put it in perspective, although these properties have had an absentee former owner who hasn’t been that focused on them and they do have some deferred maintenance, they are still 70 percent leased,” he said.
Ben van der Meer covers real estate, development, construction, water issues and the business of sports.