Jones Lang LaSalle Completes Sale of 801 K Street in Sacramento, Calif.
January 16, 2008 - Sacramento, CA
Jones Lang LaSalle today announced the sale of 801 K Street in downtown Sacramento. The landmark, 28-story tower, which comprises approximately 336,000 square feet of Class A office and retail space, was sold by a real estate fund managed by HDG Mansur, a leading international real estate company with 25 years experience in providing real estate fund/asset management and property development services, to an affiliate of USAA Real Estate Company of San Antonio, Texas and SITQ, one of the real estate subsidiaries of the Caisse de depot et placement du Quebec.
The sale was arranged by Michel Seifer and Rob Hielscher of Jones Lang LaSalle’s San Francisco office. Seifer and Hielscher were assisted in the sale by Jason Goff and Drew Petersen of Jones Lang LaSalle’s Sacramento office.
“801 K Street is a well located, institutional-quality office building in a dynamic office submarket,” said Michel Seifer, Managing Director, Jones Lang LaSalle.
The tower’s central location and striking architectural design have made 801 K Street one of Sacramento’s most identifiable office buildings since its completion in 1989.
The property is approximately 85 percent leased and occupied. Agencies of the State of California occupy more than 70 percent of the property’s net rentable area, offering a stable and secure income stream with outstanding credit.
“The ongoing redevelopment of the K Street Pedestrian Mall and continued strong demand from State Government tenants, coupled with the indefinite delay of the Resources Agency project, provides USAA substantial upside potential,” added Rob Hielscher, Vice President, Jones Lang LaSalle.
Jones Lang LaSalle has more than 600 employees throughout Northern California and manages more than 35 million square feet of the area's most prestigious commercial real estate. Additionally, Jones Lang LaSalle leases and manages in excess of 2.5 million square feet of Class A office space in Sacramento, including 801 K Street, on behalf of institutional clients. Last year, the Sacramento office of Jones Lang LaSalle was involved in more than $470 million in investment sales for clients and closed more than 500,000 square feet in leases in the Class A office market.
About USAA Real Estate Company
USAA Real Estate Company has sponsored fund and separate account investments on behalf of foreign and domestic institutional investors in office, industrial, retail and hospitality assets. USAA Real Estate Company has approximately $4 billion in owned and managed assets under management and provides acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial, retail, multi-family and hotel properties.
About SITQ
Founded in 1984, SITQ is a real estate investment, management and development firm. Its portfolio is comprised of office buildings and business parks. SITQ owns real estate assets of 10.3 billion dollars Canadian consisting of 114 properties representing more than 35 million square feet of leasable space. A leader in the Canadian real estate industry, SITQ owns assets in the United States, France, the United Kingdom and Germany. One of the subsidiaries of the Caisse de depot et placement du Quebec, five other significant pension funds accounts as its shareholders. SITQ employs 390 people who work in Montreal, where its head office is located and in its Calgary and Bruxelles, Belgium offices. For more information: www.sitq.com
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL), the only real estate money management and services firm named to FORTUNE magazine’s “100 Best Companies to Work For” and Forbes magazine’s “400 Best Big Companies,” has approximately 160 offices worldwide and operates in more than 450 cities in over 50 countries. With 2006 revenue of more than $2.0 billion, the company provides comprehensive integrated real estate and investment management expertise on a local, regional and global level to owner, occupier and investor clients. Jones Lang LaSalle is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.3 billion square feet worldwide. In 2006, the firm completed capital markets sales and acquisitions, debt financing, and equity placements on assets and portfolios valued at $70.9 billion. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse real estate money management firms, with approximately $46.9 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.