By Ben Van der Meer
Ethan Conrad Properties Inc. has snatched up another prominent office property, this one for $11.8 million, on the Highway 50 corridor of Sacramento.
According to the company, escrow has closed on 8880 Cal Center Drive, a building complex totaling about 120,000 square feet.
Prolific real estate investor Conrad liked the building’s design, layout and visibility from the nearby freeway, said Vincent Dupavillon, a company vice president, in an email.
The building is currently 60 percent leased, with tenants including Pacific Workplaces, Bank of America, United Healthcare Services, Retirement Security Center and AAA. Ethan Conrad Properties is planning a full renovation, exterior and interior, to be completed by November.
Available spaces in the building range from 800 to 23,000 square feet, according to the company. Built in 1988, the building underwent a full renovation in 2005.
Research firm Trepp Inc. said in a report that 8880 Cal Center was previously bank owned, with the loan in special servicing since June 2014. The previous borrower missed two mortgage payments in May and June 2014, as the building was around 80 percent occupied. At the time of foreclosure, rental revenues had fallen by 7 percent since 2012, the same year debt service rose by 5 percent when payments switched from interest-only to principal and interest. The defaulted loan originated in 2007, and had a balance of $18.5 million.
Conrad also recently bought La Borgata at Serrano, a 62,183-square-foot retail center in El Dorado Hills that was foreclosed in 2012.
A previous version of this story referred to the property as four buildings. It is one. Also, KTB Property Management is no longer located in the building.