FEBRUARY 22, 2007
CT REALTY CORP. AND CAPITAL VALLEY PARTNERS ACQUIRE 75 ACRES NEAR SACRAMENTO
Joint Venture to Develop Mixed-Use Project in Elk Grove
ELK GROVE, CALIF. – Newport Beach, Calif.-based CT Realty Corp. has announced a joint venture partnership with Capital Valley Partners to develop Waterman Park, a 75-acre parcel of undeveloped land in Elk Grove, Calif., near Sacramento. The joint venture partnership recently acquired Waterman Park for $4.7 million from Gyan Kalwani, a private investor. Capital Valley Partners is a real estate investment company based in Sacramento focused on Northern California-based industrial and office properties.
Waterman Park is located at 10240 Grant Line Rd. on the northeast corner of Grant Line and Waterman Roads directly off Highway 99. CT Realty and Capital Valley Partners plan to subdivide the land into eight parcels for industrial, recreational vehicle storage, flex/office, gas station and retail use.
In 2006, the U.S. Census Bureau named Elk Grove the fastest-growing city in the U.S. Located just south of Sacramento, the city straddles Highway 99 and I-5. Elk Grove is primarily a residential hub for commuters working in Sacramento. In the coming years, major retail, restaurant and residential developments are expected to expand Elk Grove’s community profile and business opportunities.
According to John Valentine, senior vice president with CT Realty’s Sacramento office, Waterman Park will be located in one of Elk Grove’s fastest-growing business districts. Currently underway is a major improvement of the Grant Line and Highway 99 interchange which will expand highway traffic to eight lanes. In addition, the Grant Line Road will be expanded later this year into a six-lane thoroughfare, becoming the city’s main transportation corridor. Waterman Park will also be located one mile east of the 1.2-million-square-foot Elk Grove Promenade Mall, currently planned for the west side of Highway 99.
“Waterman Park presents an outstanding opportunity to develop and market a new commercial property in a very dynamic region of California,” Valentine said. “Given the city’s expansion plans and overall development strategy for the area, we fully expect that Waterman Park will be a highly successful business address in the greater Sacramento marketplace.”
Valentine said that once final approval is received for the development plans for the property, the eight parcels of land will be graded and a detention basin will be constructed. Improvements will also be made to Waterman Road and Grant Line Road frontage including curbs, gutters, sidewalks, sewers and streetlights. CT Realty and Capital Valley Partners expect to invest approximately $5 million overall in the new project.
No brokers were involved in the acquisition transaction, according to Valentine. Equity financing for the purchase was provided through CT California Fund V. Debt financing was provided by assumption of a $3.4 million promissory note.
Since its establishment in 1994, Newport Beach, Calif.-based CT Realty Corp. has completed more than 140 transactions totaling more than $2 billion, which includes acquisitions, sales, development and redevelopment. In addition, the company provides development equity financing through strategic partnerships with developers in the Southwest. The focus of CT Realty’s investment activities is to acquire well-located assets with the potential to enhance their value through a solid, hands-on approach. Asset types are industrial, suburban office, multi-family, senior housing, retail, golf course and self-storage properties primarily in the purchase range of $5 million to $75 million.
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