555 Capitol Mall: Up for sale or not?
By Bob Shallit -
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Is 555 Capitol Mall still on the market? Bill Palmer, whose brokerage company is marketing the 16-story downtown building, says it is. The same word comes from Fred Teichert, whose family is one of the building's owners.
But Teichert hints that some re-evaluation is going on in light of the general business slowdown and the planned exit of some of the building's key tenants.
"We're trying to respond realistically to the market in respect to any sale," Teichert says.
What we've heard is that offers have been below what the ownership group expected - largely because of the looming vacancies.
Law firm Downey Brand LLP already has announced plans to leave next year and another legal tenant, McDonough Holland & Allen, has signed a letter of intent to move across the street to 500 Capitol Mall in 2009.
The owners have done a great job restoring the lobby and bringing in the 55 Degrees restaurant on the first floor.
Broker Chris Strain, executive director of Cushman & Wakefield's Sacramento office, credits the owners with a "great redo."
"But that said, it's still an old building," he notes, with less desirable floor plans than other downtown high-rises.
Bottom line: If they keep it, the owners will have to offer aggressive leasing to fill the emptying spaces.
For the rest of Bob Shallit's column, see Wednesday's Bee.