Starwood Capital Group
Starwood Capital Group is the new owner of 400 Capitol Mall, also known as Wells Fargo Center. An iconic part of the Sacramento skyline, the landmark Class A office building is the tallest between San Francisco and Portland. First delivered in 1992, Wells Fargo Center rises 423 feet above Capitol Mall in the Sacramento central business district, topping off at 30 stories.
Amenities in the building include a gym and lap pool on the 6th floor, a Wells Fargo Bank branch and retail services on the ground floor, and of course, five-star dining at Il Fornaio Italian Restaurant. With 511,000 square feet (SF) of rentable building area, the property commanded a sale price per-square-foot of $343.42, for a total of $175.5 Million.
The occupancy level, as of the time of sale, was 85.7%, and the average asking rents range from $2.95/SF to $3.50/SF on a monthly, full service basis. Key tenants at Wells Fargo Center (in addition to Wells Fargo) include Morgan Stanley, Orrick Law Firm, Pacific Ethanol, Pricewaterhouse Coopers, and of course, Cushman & Wakefield in their new office space on the eighteenth floor.
Commercial real estate brokers Ron Thomas, Kevin Partington, and Sean Mullen of Cushman & Wakefield worked closely with listing agent Eastdil Secured to complete the transaction on November 11, 2016, and have been assigned as the property’s leasing agents. Key goals of both the Cushman & Wakefield team and the new building owners will be new leasing as well as retention of present tenants, as the Sacramento CBD continues the urban renaissance already in progress.
The advancement of the Sacramento central city has been accelerating since the economic recovery began to take off roughly five years ago, and is expected to lure more office tenants and investors to the Downtown submarket. Beginning with game-changers like the newly opened Golden 1 Center, and following up with other projects currently under construction like Downtown Commons (“DOCO”), Sacramento is becoming a city that can and will attract a higher level of demand for office space that is closer to the core.