Riverside-based NorthPoint Development continued its national expansion with its first foray on the West Coast, buying 60 acres for industrial development in Sacramento, Calif.
The development is planned to start within weeks, with two spec buildings of 244,408 and 163,308 square feet, according to brokerage Colliers International Sacramento.
According to Colliers, NorthPoint will start work immediately on those two buildings, while the property will eventually will have 1 million square feet of industrial space across four buildings. Sacramento-based Ridge Capital TA Investments is listed as the seller in the deal, which closed May 11 for an undisclosed price.
NorthPoint representatives couldn’t immediately be reached for comment.
Mark Demetre, an executive vice president with Colliers and one of two brokers on the deal, said his firm already has sent requests for proposals to companies potentially interested in the buildings, which should be completed by year’s end. Two are local companies with a service-sector focus, and the other involves a form of distribution for a commodity product and looks for areas with big nearby populations, he said.
A reduced fee structure in West Sacramento also played a significant role in NorthPoint’s decision to buy there, Demetre said.
Colliers’ data show vacancy rates in West Sacramento for industrial properties dropped to 4.8 percent in the first quarter of this year from 9.7 percent a year earlier.
In addition to Demetre, Matt Lofrano of Colliers International Sacramento worked on the deal.