The financing package involved a $59.1 million, 10-year, fixed-rate and interest-only, commercial mortgage-backed securities (CMBS) loan — originated by Citigroup and $24.4 million in preferred equity, which, together with an $8.7 million equity contribution from Nome, allowed the firm to buy the 374,000 Sq Ft. office building for $90 million, according to information from Fitch Ratings.
The funds also paid closing costs and covered the $7.2 million remaining balance of a reserve for tenant improvements.
Citigroup’s loan, which closed on July 20, will pay interest at a rate of 3.13 percent. The lender had pegged the iconic 10-story waterfront asset value at $92.8 million, leading to an underwritten loan-to-value ratio of 63.6%, per Fitch.
The Ziggurat is located at 707 Third Street, along the banks of the Sacramento River in West Sacramento. The property’s design is just that of its name, resembling an old ziggurat of ancient Mesopotamia, which featured ribbed terraces that look like steps that lead up to the top of the structure, where they’re typically was a temple.
Built-in 1997, it’s been fully leased to California’s Department of General Services (DGS) since 2001, which renewed its lease for another 13 years in 2019. Once the agency renewed its lease, the seller committed about $12.3 million to renovate the property and upgrading its systems to achieve LEED certification.