Newmark has completed a 28-acre land sale to Dignity Health at the Folsom Ranch Corporate Center in California’s Sacramento region for an undisclosed amount. This transaction kicks off the Folsom Ranch Corporate Center, a 240-acre developable land for mixed-use commercial space. Dignity Health intends to build a medical office building as phase one of a longer-term plan to develop a comprehensive medical campus. Construction on the medical office building is likely to begin in 2022.
Newmark’s Executive Managing Director and healthcare specialist Garth Hogan, along with Executive Managing Directors Todd Eschelman, Joe Hamilton and Craig Brinitzer, who are the exclusive listing brokers on the 240-acre project, represented the owner and seller of the Folsom Ranch Corporate Campus, PCCP.
“We are proud of our 40-year legacy of serving the Folsom community, and as the city and surrounding area continues to grow, we are excited to announce our initial plans to grow with it,” said Laurie Harting, Greater Sacramento Division CEO for Dignity Health. “This state-of-the-art medical office building will be an integrated hub that expands access to quality care services that are reflective of the growing needs of Folsom.”
“Breaking ground on Dignity Health’s new medical office building marks a major milestone for the entire Folsom community and the broader Sacramento region,” said Sarah Aquino, Mayor of Folsom. “The past few months have refocused Folsom’s efforts on how we can better meet the needs of our community as the economy begins to recover. Access to high quality healthcare is vital to our quality of life in Folsom and critical to economic investment and job creation in our region.”
Elaine Anderson, City Manager, added, “The Folsom community is fortunate to be the beneficiary of Dignity Health’s high quality and accessible health care, and we are thrilled that Folsom will be home to this important expansion. Now more than ever, we know that access to quality health care is the cornerstone of a healthy community and economy. We are grateful for our longstanding partnership with Dignity Health and deeply value their long tradition of investing in the health and well-being of Folsom and our surrounding region.”
Folsom Ranch Corporate Center is a 240-acre developable site that is a part of the larger Folsom Ranch project. The corporate center site, comprised of four large parcels, runs from Prairie City Road to east of East Bidwell and south of Highway 50. The property, surrounded by oak tree studded hills, ponds and creeks, offers a tranquil and unmatched potential campus setting.
Since breaking ground in 2017, over $200 million has been invested on infrastructure to service the Folsom Ranch project. As of late 2018, approximately 600 building permits have been pulled by seven different home builders who are all now actively building and selling homes in proximity to the Folsom Ranch Corporate Center
“Folsom Ranch and the surrounding area consist of the ideal demographic to construct a multi-health system campus for the entire continuum of care, birth through life,” said Hogan. “Along with Dignity Health, there continues to be strong interest from additional health systems as well as multi-acuity senior care, which plan to address the post-COVID-19 care environment.”
Eschelman concluded, “Paired with the continued demand for more healthcare real estate, we believe the unique topography of Folsom Corporate Center – West will be attractive to a technology, R&D and/or life sciences user.”
The site is directly across the freeway from Intel’s 1.3 million square foot R&D facility which brought 6,000 jobs to the market.
The Folsom office submarket posted a 4.3% vacancy in the Q2 2020, slightly lower than Q1 2020 vacancy rate of 4.5%, according to Newmark research. Folsom had the lowest vacancy rate of the 22 submarkets in the Sacramento Region. Although net absorption was only 2,179 square feet it brought the year-to-date total to 48,758 square feet. Folsom benefits from a wide and diverse private sector user base and boasts one of the highest qualities of life opportunities in the region, according to Newmark Research.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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