Sacramento Industrial Park
Peachtree Finances the Conversion of a Retail Store to an Industrial Building
An experienced commercial real estate lender, Peachtree Group originated a $20.5MM development loan for a retail to industrial conversion in Sacramento, California. The property is located in the infill Northgate submarket of Sacramento where there is no new land or new supply coming online and the existing industrial buildings have a market occupancy above 95%.
Strong Basis
Peachtree's fully funded basis will be $131 PSF in a market where newer properties are trading for over $200 PSF and construction costs for new buildings are $180-190 PSF.
Experienced Sponsor
The Sponsor is a fully integrated real estate investment and development company headquartered in Los Angeles, CA that partners with institutional investors. They currently own and operate over $3 billion in total assets and specialize in developing and constructing mixed-use projects. The Sponsor currently has over 3,000 multifamily and build-to-rent residential units in development and over 1MM SF of commercial space in Sun Belt markets across the US.
Strong Submarket with Excellent Proximity
The property is located in the Northgate submarket of Sacramento, considered one of the best industrial submarkets in all of California where rents are consistently increasing with submarket averaging near $11 per square foot with market occupancy above 95%.
The property is right off the exit from Interstate 80 which has an average daily volume of 144K vehicles. The submarket offers interconnectivity to major ports, international airports, and overnight courier hubs. With its proximity to Interstate 80 and Interstate 5, there is convenient travel throughout Northern California and into Reno.
The Sacramento International Airport (5.5 miles from the Property) returned to pre-pandemic levels, servicing nearly 12 million passengers. Passenger traffic is forecasted to increase by 4.3% annually through 2041. SMF’s $1.3B expansion project will increase efficiency and capacity in preparation for the region’s expected growth over the next decade.
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Avoid Political Noise When Investing: A Market Update with Larry Adam, Raymond James
In our recent market update call, we hear insights from Larry Adam the Chief Investment Officer of Raymond James, alongside Greg Friedman, Managing Principal & CEO of Peachtree Group and Daniel Savage, VP Equity Capital Markets of Peachtree Group. One of the standout moments from the discussion was an intriguing investment takeaway that highlights the importance of consistent investing over trying to time the market based on political cycles.
Investment Insights Through the Decades
Consider this: if you had invested $10,000 in the stock market starting in 1970 and only remained invested during Republican presidencies, your investment would have grown to approximately $133,000 by now. Conversely, if you had only stayed invested during Democratic presidencies, your portfolio would have soared to around $700,000.
Now, here’s where the numbers become even more compelling. If you had stayed fully invested in the market, regardless of which party was in power, that initial $10,000 would have appreciated to an impressive $1.6 million!
The Lesson: Stay the Course
Timing the market based on political affiliation has proven to be less effective than maintaining a consistent investment strategy. As Larry Adam pointed out, “It's more important to be in the market than trying to find the market. I think that's a critical lesson…”
The volatility that comes with political changes can tempt investors to pull back or make hasty decisions. However, history shows that those who remain patient and invested through all market conditions tend to reap the greatest rewards.
The key is to be in the market, not trying to outsmart it.
About Larry Adam
Larry Adam joined Raymond James in 2018 as Chief Investment Officer. With over thirty years of experience in the financial markets, Mr. Adam brings a wealth of knowledge and valuable insights on the markets and economy to advisors and clients. As CIO, Mr. Adam develops the firm’s CIO view, a cohesive and comprehensive macro outlook, using insights and perspectives from the firm’s strategists. Mr. Adam presents at numerous client events and is renowned for his ability to explain complex concepts to investors.
Mr. Adam provides advisors and clients with in-depth guidance regarding the markets, including weekly and monthly commentary and quarterly outlooks. In addition to serving as President of the Investment Strategy Committee, he also sits on the Global Wealth Solutions (GWS) Diversity & Inclusion Campus Recruitment Committee, the GWS Executive Council, and the Alternative and Structured Investments Product Approval Committee.
Prior to joining Raymond James, Mr. Adam held the dual roles of CIO of the Americas and Global Chief Investment Strategist for Deutsche Bank Private Wealth Management. He received a B.B.A. with a concentration in finance from Loyola University Maryland in 1991 and received a master’s degree in business with a concentration in finance from Loyola University Maryland in 1993. Mr. Adam is an adjunct professor at the Sellinger School of Business and Management at Loyola University, teaching classes in International Finance. He received the Chartered Financial Analyst designation in 1996, the Certified Investment Management® certification in 2001 and the Certified Financial Planner® designation in 2004. Mr. Adam is regularly featured on CNBC and Bloomberg and is frequently quoted in well-known publications such as the Wall Street Journal and Barron’s.
Cheddar TV: Will We See a Recession in 2025?
Managing Principal and CEO of Peachtree Group, Greg Friedman, joins Cheddar's Dave Briggs to discuss the possibility of a recession in 2025.
Bloomberg TV: Peachtree CEO on Challenges in CRE, Market Trends and Why Private Credit
Peachtree Group CEO Greg Friedman joined Bloomberg TVs Abigail Doolittle to discuss the challenges in commercial real estate, market trends and why private credit.
Click here to see the entire episode which begins around 43:48.