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Elk Grove Citizen

Retail Property Sells for $11 Million

Jan 30, 2020 12:00AM ● By Story by Shaunna Boyd

The Carmichael Center recently sold to Southern California investors Diamond Developers, LLC. Photo by Patrick Larenas

Retail Property Sells for $11 Million [2 Images] Click Any Image To Expand

CARMICHAEL, CA (MPG) - Real estate investment group CBRE recently announced the $11 million sale of a retail property in Carmichael, CA.

The Carmichael Center is located at 7223, 7225, and 7241 Fair Oaks Blvd. The three tenants are well-established businesses that have long-term leases at the property: Big Lots, Smart and Final, and Wells Fargo.

CBRE facilitated the sale by representing the owner, 99 Palms, LLC, a joint venture between three private investors/developers based in Southern California. That group had owned the property for approximately six years. CBRE senior vice president Patrick Wade said 99 Palms, LLC chose to sell at this time “so the investors could trade into separate properties.”

The Carmichael Center is located on a corner lot that is centrally located and in a high-traffic area, making the property a desirable investment opportunity. Interest in the property was primarily from developers in Southern California. Because property values are so much higher in Southern California, each investment dollar can go much further in a more affordable area — such as in the Sacramento region. Wade said that there were multiple offers on the property; many groups were “attracted to the investment because it offered higher yields than typically seen in coastal and Bay Area/SoCal investments.”

CBRE helped select the buyer — Diamond Developers, LLC, a group of private investors in Southern California. Wade said that the group stood out as a potential buyer because “they had a shorter due diligence period than the other offers on the property and had capital readily available on hand.”

“They placed long-term debt,” said Wade, so Diamond Developers, LLC plans to hold the investment property long term.