Bering Capital's first purchase is Gold River office building – Sacramento Business Journal – The Business Journals
A veteran of commercial real estate with local roots has formed a new company based in San Francisco, and its first purchase is a local one.
Bering Capital Partners LLC made its debut last Friday by closing escrow on 12009 Foundation Place, a Gold River office building, for $13.25 million.
“The deals are where you find them,” said Bering founder and managing principal Christopher Aust, who graduated from Placer High School in Auburn.
Back in January, Aust said, he had a deal in place with seller Carlsen Investments LLC for the three-story, 107,934-square-foot building, built in 2001. At the time, he said, he believed office tenants looking at their post-pandemic plans would seek out such sites: well located with a good amenity mix and Class A feel.
As first inflation and more recently higher interest rates sent jolts through financing markets, he said, the deal ended up being the most difficult to close in his 30 years in brokerage and investment.
But with one new lease to a state agency for 9,000 square feet in the building earlier this year, and Zurich Insurance Group Ltd. signing for 16,000 square feet near close of escrow, Aust said, he believes his January hypothesis is proving correct.
“That remains my mindset today as it pertains to post-pandemic mindset for tenants,” he said. Over time, he believes “most employers will want to see employees in the office.”
With the Zurich lease, the building is about 30% occupied, with boosting occupancy further is a big focus for the new ownership. Many new leases might very well be on the smaller side, Aust said, noting Zurich is relocating from a 60,000-square-foot lease elsewhere on the Highway 50 corridor.
Bering Capital will also invest in some aesthetic upgrades, such as adding an electronic tenant registry in the lobby and enhancing some common spaces. Aust said he didn’t have an exact figure for that investment, but emphasized the building was well maintained and doesn’t have any deferred maintenance that would mean a greater outlay.
Carlsen Investments LLC originally developed the building, known for many years as where insurance agency The Hartford had its local outpost. That company vacated the spot in recent years.
A message left with Carlsen Investments was not returned. Randy Getz, Jason Goff and Nellie Cruz of commercial real estate brokerage CBRE in Sacramento worked on the deal on behalf of Carlsen.
Odyssey Capital Group and MBM Cos. provided project equity for the deal, while Prime Finance provided acquisition financing.