By Emily Hamann –Staff Writer, Sacramento Business Journal

Jan 3, 2024

In his latest shopping spree, real estate investor Ethan Conrad is betting on largely vacant office buildings around the Sacramento area.

Conrad, CEO of Ethan Conrad Properties Inc., announced his company closed on the purchases of three new properties last month.

That includes 3215 Prospect Park Drive in Rancho Cordova, a 102,000-square-foot building Conrad bought for $3.96 million; 10961 Sun Center Drive also in Rancho Cordova, which has 44,000 square feet and sold for $2 million; and the 100,000-square-foot 2525 Natomas Park Drive in Sacramento, which sold for $5.35 million.

In an email, Conrad said he got the Prospect Park and Natomas properties for around a third of what a similar property would typically go for. According to real estate intelligence service Reonomy, the last time the Natomas property changed hands was in 2014, and it sold for $12.5 million — more than 50% more than what Conrad bought it for this time. The last sale price Reonomy has for the Prospect Park property was recorded in 1988, and even back then sold for twice what Conrad bought it for, not adjusting for inflation.

Both the Rancho Cordova properties are vacant, and the Natomas property is just 25% leased.

“They’re well-built and attractively positioned in mature business parks that we feel confident will have strong leasing demand once the work-from-home model relaxes and employees come back to the office,” said Grant Keeney, senior vice president with Ethan Conrad Properties.

Keeney said he knows of major employers that have allowed employees to work remotely so far, but are asking workers to come back to the office for at least a few days a week in the new year.

“We’ll be able to offer extremely competitive rents,” Keeney said. “That should be attractive to companies returning to the market in 2024.”

Keeney said all the buildings are in good condition, and the company plans to do some modernizing and remodeling to make the properties more attractive for prospective tenants.

“As is our typical strategy, we will be adding additional common area upgrades and building improvements in the next three to six months,” Keeney said.

Reprinted from https://www.bizjournals.com/sacramento/news/2024/01/03/ethan-conrad-buys-three-office-buildings.html