Midtown businesses buy building for $1.925 million
Author: Sacramento Business Journal
Escrow closed last week on the purchase of 2831 G St. by Capitol Tech Solutions and Midtown Dental Group. The property on two parcels includes a two-story, 10,000-square-foot office building and 24 parking spots, a considerable number for many midtown buildings.
Broker John Mudgett of Turton Commercial Real Estate said the two companies will occupy a portion of the building. But to make the $1.925 million sale happen, previous owner and tenant Neighbor’s Financial Corp. had to agree to lease back a portion of the building.
“One of the key portions to solving the problem was that the buyers didn’t want to deal with vacancy,” he said. By leasing back some of the building, Neighbor’s gives the new owners time to figure out a full plan for it and allows a more gradual transition. “It’s the perfect opportunity for the buyer."
Bobby Reed, owner of Capitol Tech, said his web development and information technology services firm is growing but wanted to stay in midtown if possible. The search for a new space began about three years ago, he said, but the tight midtown office market made it difficult.
“As we grow, this gives us the ability to grow into the space,” said Reed, whose 11 employees will move into about 1,200 square feet in the building. Eventually, Reed said, Capitol Tech could occupy as much as 5,000 square feet at 2831 G St.
Midtown Dental is currently at 1111 24th St., while Capitol Tech is at 2131 Capitol Ave.
Mudgett worked on the deal on behalf of the buyers, while Mike Riley and Rich Ellsworth of Newmark Cornish & Carey worked on behalf of the seller.