A new player in industrial property investment made its first local purchase with a value-add park in the Point West area of Sacramento.
Newly formed Sword Industrial Partners, an investment platform under Dallas-based MAG Capital Partners, closed escrow April 8 on Expo Centre, at 1767-1791 Tribute Road.
“We’re focused on value-add, multi-tenant industrial in infill locations,” said managing partner Scott Word, explaining why his company targeted Expo Centre. “We’re also focused on small-bay infill locations with no near-term supply competition.”
Records show Sword Industrial Partners paid $17.55 million for Expo Centre, which has 121,816 square feet of space across seven buildings and 7.7 acres. Current occupancy is around 70%.
Before Sword’s acquisition, the previous owner spent about $5 million on property upgrades and reconfigurations that helped create newly leasable space within the center, which was built in 1975.
Word said the company is planning some further cosmetic property investments, but the bulk of its strategy will be on leasing available space. Matt Susac and Todd Sanfilippo of CBRE will be the leasing agents for the property.
With bays ranging from 1,500 to 6,600 square feet, Expo Centre has a niche hard to find in the northeast part of Sacramento, where most industrial properties have either larger spaces or a single tenant.
Sword Capital Partners is expecting tenant interest across the board, Word said. “Small businesses that are operating and need a space to serve that general MSA,” he said.
BKM Capital Partners in Newport Beach is the seller in the deal. Company representatives were not immediately available for comment Friday. Records show the firm bought Expo Centre in 2018 for $10.1 million.
Rebecca Perlmutter of CBRE represented BKM Capital in the sale to Sword Industrial.
Sword Industrial Partners is focused on buying industrial properties with a similar profile across the western U.S., Word said. That could include other such properties in the Sacramento region, he added.