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]

© 2023 Avistone, LLC. All rights reserved.


Communications from Avistone, LLC or its affiliates (referred to together as "Avistone"), whether it is transmitted through its website or any other marketing platform used by Avistone (collectively termed "Avistone Communications") must not be interpreted or meant to 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.

The content provided herein and through Avistone Communications must be reviewed in conjunction with related private placement memorandums and other offering documents to comprehensively understand the risks associated with the securities to which it pertains. Participation in private placements necessitates substantial and sustained financial commitments, the capacity to withstand a complete loss of the investment, and minimal liquidity requirements. Avistone’s website and Avistone Communications imparts preliminary and generalized insights regarding the Investments, intended solely for initial reference purposes. It does not encapsulate or consolidate the entirety of applicable information. The information within is subject to qualification by and subject to more intricate details as presented in the relevant offering materials. Avistone is not registered as a broker-dealer. Avistone disclaims any assertion or warranty to any potential investor regarding the legality of an investment in any Avistone Investments.

Investments in securities or real property involve inherent risks and are exclusively available to accredited investors, as defined in the Securities Act of 1933, who comprehend and willingly assume the elevated risks associated with private investments. These risks encompass, but are not confined to, market fluctuations, credit vulnerabilities, interest rate exposure, and the prospect of partial or total loss of invested capital. Prior to investment, one should: (1) conduct an independent investigation and assessment; (2) meticulously evaluate the investment along with all concomitant fees, expenditures, uncertainties, and risks, including those stipulated in the offering materials; and (3) consult with individual investment, tax, financial, and legal consultants.

The content presented in Avistone Communications is neither intended as a recommendation nor a form of investment counsel, nor does it signify an entreaty to procure, vend, or retain a security or investment strategy, and it is not imparted in a fiduciary capacity. The information provided does not factor in the specific goals or circumstances of any given investor or propose any particular course of action. The information reflects Avistone’s interpretation of the prevailing market milieu. The viability of achieving the objectives of any Avistone fund or investment, or averting substantial losses, cannot be ensured. Investment determinations must be formulated on the basis of an investor’s individual goals and circumstances, and in collaboration with their financial professionals. Historical performance is not indicative of future outcomes. All research and supplementary information supplied through Avistone Communications is crafted exclusively for informational purposes, and Avistone assumes no accountability for any inaccuracies or omissions within the content of this website or any linked resources.

All approximated financial and investment benchmarks, inclusive of forecasted internal rate of returns (IRR), yields, multiples, and investment holding period returns, as displayed on Avistone Communications, stand as conjectural projects of performance exclusively, are hypothetical in nature, are not to be regard as actual investment outcomes, and do not present guarantees of future results. Such approximated benchmarks are invariably accompanied by intrinsic risks, encompassing but not restricted to market volatility, operational ambiguities, and limited liquidity, and do not signify or assure the real outcomes of any transaction; and no assertion is made that any transaction will, or is likely to, attain results or profits akin to those depicted. Moreover, additional financial metrics and calculations shown on Avistone Communications (including amounts of principal and interest repaid) have not undergone independent verification or audit and may diverge from the actual financial metrics and calculations realized for any investment. The investment data contained herein is sourced from entities Avistone believes to be reliable, yet no assertions or warranties are made as to the accuracy or comprehensiveness of said information, and no responsibility is accepted for the same.

Avistone’s historical track record showing past performance is no guarantee of future results. The performance of Avistone’s prior projects have not been audited by any third party. Not all investors received precisely the same returns due to differences in their respective commitment dates for individual 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 investments, weighted by the respective capitalization amount for each Full Cycle Investment.

Investments in private placements are speculative and involve a significant quantum of risk, and those investors whose financial situation cannot withstand a complete loss of their investment should abstain from investing. Moreover, investors may receive securities with limited liquidity and/or constraints on transferability, subject to specified holding duration prerequisites and/or concerns about liquidity. Investments in private placements inherently entail a high degree of illiquidity, and investors with an inability to retain an investment over the long term (at least 5-7 years) should refrain from investing. Real estate and alternative investments should only constitute a component of a broader investment portfolio.

Private placement investments are not equivalent to bank deposits (and consequently lack FDIC insurance coverage or safeguarding by any other federal government agency), are illiquid, are not endorsed by Avistone or any other entity, and may depreciate in value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or endorsed any investment, or authenticated the accuracy or exhaustiveness of any information or materials furnished via Avistone Communications. Investors must be financially prepared to absorb the complete loss of their 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.