Sacramento’s premier office tower trades for $117M

SAN FRANCISCO, Oct. 30, 2024 – JLL Capital Markets announced today that it has completed the $117 million sale of 400 Capitol Mall, a Class A, 501,308-square-foot trophy office tower that is largely considered the top performing asset in the Downtown submarket. The transaction represents the largest office sale in Sacramento in almost five years.

JLL represented the seller, Manulife US REIT, in the transaction. PacWest Equities, an affiliate of Buzz Oates, acquired the asset in an all-cash deal.

The 29-story tower has maintained an impressive nearly 90% historical occupancy over the past 25 years and its resilience is further evidenced by robust recent leasing activity with 232,000 square feet of leases signed since 2020.

The property’s ability to attract - and retain - a roster of blue-chip tenants, including Wells Fargo, Morgan Stanley, PWC, Deloitte and Orrick speaks to its quality and appeal as top-tier assets continue to command strong interest, even in a challenging office market.

The trophy tower is located in the heart of Downtown Sacramento and boasts a five-story, 1,094-space parking garage and offers tenants access to an array of amenities, including valet parking and car detailing, a fitness center with locker rooms and saunas, a private outdoor pool, conference center facility and a high-end ground floor restaurant and café.

JLL’s Capital Markets Investment Sales and Advisory team representing the seller was led by Managing Director Adam Lasoff, Senior Managing Director Rob Hielscher, Senior Director Erik Hanson and Associate Caroline Reynolds.

“The sale of 400 Capitol Mall not only represents a significant investment in Sacramento’s office market, but further exemplifies the flight to quality trend and the divergence between top-tier and lower-quality assets in the current market landscape.” Lasoff said.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom.

Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

Manulife US REIT is a Singapore listed REIT established with the investment strategy principally to invest, directly or indirectly, in a portfolio of income-producing real estate in key markets in the United States, as well as real estate-related assets.