South Valley Centre 5 Office Properties in Multiple Locations

Newmark Private Capital Markets is pleased to present the exclusive opportunity to acquire 8231, 8233, 8235, 8239 and 8243 E. Stockton Boulevard, a medical office and healthcare flex campus located in the heart of the South Sacramento medical corridor. The project is being offered for the first time since development by the original developer, presenting investors with a rare opportunity to acquire a stabilized healthcare asset with upside through additional development and rent increases from
strong credit tenancies and long-term demand drivers.
The campus is 93% leased to a mix of essential healthcare and public-service tenants including DaVita, WellSpace Health, and Sacramento County, serving critical community health functions in a location that directly supports their mission. The property sits within one mile of Sacramento’s most concentrated medical cluster and directly across the freeway from Kaiser Permanente South Sacramento Medical Center, the largest Kaiser facility in the region and one of the metro area’s largest healthcare employment centers. Kaiser’s operational presence in the immediate area — including its ownership of buildings within the broader campus — speaks to the site’s long-term strategic value within this corridor. This proximity creates strong and durable demand for ancillary healthcare, dialysis, and outpatient services, positioning the property as a key extension of the surrounding medical ecosystem.
The investment offers stable, in-place income with meaningful upside potential. Current weighted-average rents are approximately $0.20 per square foot below market, providing investors the opportunity to capture mark-to-market rent growth over time as leases roll. A weighted-average remaining lease term of approximately 5.3 years allows buyers to benefit from both near-term stability and future revenue growth. In addition, at an estimated delivery cost of approximately $300 per square foot, the entitled freestanding Building 5 building is projected to stabilize at an 8.5% yield on cost, a spread of nearly 300 basis points over the going-in cap rate, delivering high grade medical office product into an undersupplied market.
With the embedded rental upside, land entitled for development, and conservative leverage assumptions, the opportunity is projected to generate a mid-teens leveraged IRR over a five-year holding period, positioning the asset as an attractive core-plus investment within a supply-constrained healthcare real estate sector.