Ethan Conrad picks up mostly empty Northgate office building.

By Ben van der Meer  –  Staff Writer, Sacramento Business Journal

A lack of leasing, and overall value loss, helped create another asset for Ethan Conrad to buy, this time near Northgate Boulevard in Sacramento.

Conrad said in an email Tuesday he’d bought 3840 Rosin Court, a two-story office building of nearly 48,000 square feet, for $2.6 million. The price, about $54 per square foot, is about a fourth of what it would cost to build a similar building now, he said.

“I am a little concerned about office properties with working from home becoming more popular, but I think virtually all studies confirm that most people are more productive working from an office,” Conrad said in an email, adding he’d rather buy more suburban office properties, like 3840 Rosin, than ones in urban or downtown areas.

At the time of sale, 3840 Rosin Court was about 14% occupied, Conrad said in an email to his employees announcing the purchase. He said in the letter he’s since gotten a tenant in another building to agree to occupy about 9,000 square feet at 3840 Rosin.

As is typical, Ethan Conrad Properties Inc. is planning a remodel of the building to increase its leasing prospects, he said. The firm’s improvements typically involve upgrades to paint, common areas, and landscaping.

Built in 1985, 3840 Rosin Court most recently appears to have had Inspire Charter School as its primary tenant. The school, part of a chain of schools that specializes in assisting parents who home-school their children, changed its name to Feather River Charter School and appears to have relocated to Sutter County within the last few months.

According to media reports, the parent company of Inspire Charter Schools has faced accusations about financial misspending from member schools, which Feather River no longer appears to be.

Real estate data service Reonomy shows AEP Charter Inspire Sacramento was the most recent owner of 3840 Rosin Court. The Pleasanton address for the previous owner corresponds to GS Management Co., a commercial real estate services firm. A message left there Tuesday was not returned.

The property also appears to have declined in value in recent years. After selling for $6.225 million in 2007, 3840 Rosin Court sold to AEP Charter Inspire for $5.25 million three years ago, before the new sale for about half that to Conrad.