Avistone Acquires Watt 80 Business Park in Sacramento, CA

By David Sheets | Nov 06, 2014 News
Watt 80 Business Park

Avistone is  pleased to announce in October of 2013 the acquisition by Avistone Northern Highland LLC of the 62,000 square foot Watt 80 Business Park located in Sacramento, CA .   This investment offered a healthy average annual cash on cash yield to the investors of 9.26% and an estimated annual return on investment (IRR) of 15% projected over the 5 year investment horizon.  The company was able to negotiate an acquisition price of $5,300,00 ($84.63/sq ft) which represents approximately 70% of current replacement cost.

Dan Culler, a Principal at Avistone stated that “purchasing multi-tenant industrial property at prices below replacement value in growing markets enhances the appreciation potential of the property because as new construction comes on line it will produce upward pressure on rents and valuations.  It also reduces the risk of downside depreciation.”  Occupancy of Watt 80 was 91% at the time of sale in a market that is expected to experience significant growth over the coming years thus offering investors the potential of a bright future.   The investment meets Avistone’s investment criteria of  optimal mix of yield, return and risk.

The Sacramento area for industrial and business park properties is very high on Avistone’s list of interesting markets.  California is now running a budget surplus, which is good news for the City and State.  In addition, the recently enacted Resources Reform and Development Act of 2014 is a major game changer for the Sacramento market. Among other things, it authorizes the U.S. Army Corps of Engineers to proceed with a $600 million to $1 billion project to finish the river levee work on the Natomas basin (Sacramento and American Rivers), with work slated to begin in 2015. Because this levee work has been badly needed to meet the community’s water requirements, Sacramento enacted a building moratorium several years ago that halted numerous residential projects in the region. Now, with passage of the Act, the city is seeking to lift the moratorium, thus allowing major construction projects to start and to resume… all of which bodes very well for the region’s economy; and in particular, firms in the construction and housing trades – building contractors, construction material suppliers,  household goods suppliers and supporting industries will require flex space in business parks. Further, we expect the eastward flow of businesses and residents from the high-priced San Francisco Bay area to continue and pick-up steam with the end of the moratorium.

Avistone is a real estate investment management firm that specializes in the acquisition of  high-yield, multi-tenant industrial business parks located throughout the U.S.  We target stabilized properties that can be acquired below replacement cost in growing markets that also have healthy cash flow, which improves the risk profile of these investments.

Our principals have over 50 years of combined experience acquiring and managing commercial real estate investments on behalf of individual and institutional investors.  Avistone’s expertise  is the acquisition and management of commercial real estate that optimizes  yield, return and risk for our investors.

Investment units in the Watt 80 Business Park, priced at $25,000 each,  are sold out.  Investment units in the Meridian Gateway Business Center, priced at $50,000 each, are sold out.  If you have interest in Avistone’s future investment offerings, please contact us at [email protected]

© 2024 Avistone, LLC. All rights reserved.


Communications from Avistone, LLC or its affiliates (referred to together as "Avistone"), whether it is transmitted through its website, social media, email, text or any other marketing platform used by Avistone (collectively termed "Avistone Communications") must not be taken as recommendations or endorsements to purchase, sell, or hold any securities. Furthermore, Avistone Communications should not be considered as advice related to investment, taxation, finance, accounting, legal matters, regulations, or compliance.

To gain a comprehensive understanding of the risks associated with the securities mentioned herein or in Avistone Communications, it is essential to review them with related private placement memorandums and other offering documents. Participating in private placements requires substantial financial commitment and the ability to tolerate a complete loss of the investment. Avistone Communications provide a preliminary overview and insights into Avistone sponsored investments, and are intended for initial reference. However, they do not encompass all relevant information and should not be considered a complete representation. The information presented is subject to further updates without notice and qualification as provided in the relevant offering materials. It's important to note that Avistone is not registered as a broker-dealer, and Avistone does not make any claims or warranties regarding the legality of investments in Avistone sponsored investments ("Avistone Investments").

Investing in alternative securities or real property carries inherent risks, are illiquid, may depreciate in value, and is limited to accredited investors under the Securities Act of 1933. These risks include market fluctuations, credit vulnerabilities, interest rate exposure, and potential loss of capital. Before investing, all prospective investors must conduct an independent assessment, evaluate fees, uncertainties, and risks outlined in offering materials, and consult with investment, tax, financial, and legal advisors. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or endorsed any Avistone Investment, or authenticated the accuracy or exhaustiveness of any information or materials furnished via Avistone Communications.

The information in Avistone Communications is not a recommendation, investment advice, or a solicitation to buy, sell, or hold any security or investment strategy. It is not provided in a fiduciary capacity and does not consider an individual investor's specific goals or circumstances. The information reflects Avistone's market interpretation, and the success of Avistone Investments is not guaranteed. Investment decisions should be based on individual goals, in consultation with financial professionals. Past performance does not predict future outcomes. All research and supplementary information in Avistone Communications are for informational purposes only, and Avistone assumes no responsibility for inaccuracies or omissions in the content or linked resources.

The financial and investment benchmarks, including forecasted internal rate of returns (IRR), total return, distribution yields, multiples, and investment holding period returns, displayed on Avistone Communications are projections, subject to change and should not be considered as actual investment outcomes or guarantees of future results. These benchmarks always come with inherent risks, such as market volatility, operational uncertainties, and limited liquidity. Additionally, financial metrics and calculations within Avistone Communications have not undergone independent verification or audit and may differ from actual financial metrics for any investment. The investment data provided is sourced from entities believed to be reliable, but no assertions or warranties are made regarding its accuracy or comprehensiveness, and Avistone assumes no responsibility for any inaccuracies.

Avistone’s historical track record in the industrial sector showing past performance is no guarantee of future results. The performance of Avistone’s prior industrial projects have not been audited by any third party. Not all investors received the same returns due primarily to investments in different property offerings. Full-Cycle Track Record average metrics are based on weighted averages that treat investment dollars equally and are calculated after summing the results of all Avistone full-cycle industrial investments, weighted by each investment's respective capitalization amount for each Full Cycle Investment.

Materials or data emanating from third-party media external to this domain or Avistone Communications may address or refer to Avistone or correspond to information contained herein, however, Avistone does not extend endorsement or accountability for such content. Hyperlinks to external sites or reproduction of content from third-party sources do not denote an endorsement or approval by Avistone of the content thus linked or reproduced.