West Sacramento’s Southport attracts local investor
March 28, 2014 by Sarah
New investment dollars are coming to the Southport area of West Sacramento.
Ethan Conrad, a local investor in real estate, has bought the office property located at 2945 Ramco Street, and is planning on maintaining the building as commercial property.
The office building was constructed in 2001 and, according to Conrad, the demand in that area for office space was not strong. Today, however, more residential and retail outlets have taken hold in Southport and this is the kind of development needed to support office buildings. Conrad believes his new property will prosper, especially with some modest upgrades and light renovation to improve the overall appearance of the building.
Presently, the two-story building can only claim a 40% occupancy rate, but Conrad thinks that will slowly and steadily improve. He explains:
“The office market, in general, has definitely been tough. Although it’s gotten better and I think it’ll continue to get better, it’s going to be a slow process.”
While the $3.44m price tag is not pocket change, Conrad believes it was a wise purchase. Given the size of the building, the price works out to $55 per square foot – far below what it would cost to construct a comparable building today.
For merchants in Southport, whether a clothing boutique or poster printing service, this type of commercial investment is a welcome sign that indicates others see the economic potential of the area.