10-04-2013 08:13 PM

Roseville office building sells for highest rate in years


Tony Wood, principal at Tiner Commercial Real Estate Services, said at $180 a square foot, the office at 970 Reserve Drive in the Vintage Oaks Office Park was the most expensive such transaction in more than four years.




An office building recently sold in Roseville shows signs the market is approaching levels not seen in five years, according to the broker who helped arrange the deal.
Tony Wood, principal at Tiner Commercial Real Estate Services, said at $180 a square foot, the office at 970 Reserve Drive in the Vintage Oaks Office Park was the most expensive such transaction in more than four years.
“I think it’s reflective of the marketplace in a number of ways,” Wood said. Because the property, 3,000 square feet, is a Class A building in what he termed a Class A location, it didn’t have much trouble getting offers. “If you’re talking Class B, Class C properties in less desirable situations, the market is still finding its balance.”
The transaction also is noteworthy for two other reasons, Wood said: The building was bought from Owens Financial by Tevis Insurance Services, which already has an office next door, and the insurance company bought what’s considered a shell, he said; Walls, windows, and not much more.
“Reserve Drive is a popular place, and it really commands top dollar,” he said. And if Tevis expands into the new purchase, as he expects, they’d be doubling their existing space and filling it with new staff and employees, he said, suggesting confidence in the overall economy continuing to improve.
When the market peaked, Wood said, such space would go for about $200 a square foot, then plunged to as low as $89 a square foot more recently. The price for the Reserve Drive office shows the market is approaching peaks again, he said.
Ben van der Meer covers real*estate, development, local and regional planning, construction, transportation, agriculture and water for the Sacramento Business Journal.


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