Capital Rivers Commercial
Strategic Sale of Sacramento Life Science & Biotech Facility
Specialized Biotech & Life Science Case Study
Sacramento Life Science Real Estate Sale
Transaction Overview: Capital Rivers Commercial successfully facilitated the sale of 2870 Kilgore Road in Rancho Cordova, a 75,626-square-foot biotech facility, to a Luxembourg-based biotech company for $8.5 million. The transaction closed at $112 per square foot, achieving 13% above the market average, and was completed in 150 days, significantly faster than the typical 246-day market timeline.
The sale highlights the growth of the Sacramento Life Science sector, which continues to expand through major investments and the research expertise of UC Davis. The region’s biotech presence is reinforced by developments such as Aggie Square, a state-of-the-art life science center opening in 2026, and the expansion of biotech firms like ThermoGenesis, GeminiBio, and Orca Bio. Large-scale infrastructure projects, including BioSpace’s 1.4 million-square-foot life science campus, further solidify Sacramento’s role in biotechnology.
Additionally, institutional support from organizations such as Seed Central and the HM.CLAUSE Life Science Innovation Center fosters industry collaboration and research advancements. With its expanding infrastructure and strong academic foundation, Sacramento Life Science is well-positioned for continued growth in biotechnology and agri-food technology.
The sale of 2870 Kilgore Road involved several complexities, primarily due to its specialized biotech infrastructure. Purpose-built with lab space, clean rooms, and advanced biotech facilities, the property had limited appeal to traditional industrial buyers. Additionally, the seller—an international company—sought to sell at a premium after determining the property no longer aligned with their business needs. Further challenges included the building’s large size, limited loading docks, and high conversion costs, making it less attractive to standard industrial or warehouse users.
- Specialized Biotech Space: Designed with lab space, clean rooms, and biotech infrastructure, limiting appeal to traditional industrial buyers.
- Ownership’s Financial Goals: The seller, a large international company, needed to sell at a premium to avoid a financial loss.
- Limited Flexibility: The 75,626 SF building had few loading docks and high conversion costs, making it less attractive to standard industrial or warehouse users.
To overcome these challenges and meet the seller’s price expectations, Capital Rivers Commercial implemented a targeted strategy tailored to the property’s specialized nature. Rather than marketing 2870 Kilgore Road as a standard industrial space, the team positioned it as a unique biotech opportunity, leveraging Sacramento’s status as a growing life sciences and agri-food tech hub. They focused outreach on biotech firms that could utilize the existing infrastructure without costly retrofitting while highlighting Sacramento’s competitive advantages, including affordable operational costs, a skilled talent pool from UC Davis, and a strong quality of life. This approach ultimately led to securing an international buyer that was the right fit for the property.
- Positioned the Property as a Unique Biotech Opportunity: Marketed the space within Sacramento’s growing life sciences and agri-food tech sector rather than as a traditional industrial property.
- Marketed to the Right Buyers: Targeted biotech firms that could maximize the existing infrastructure without expensive modifications.
- Highlighted Sacramento’s Competitive Advantage: Emphasized the region’s lower operational costs, access to skilled UC Davis graduates, and appeal to biotech companies looking to expand.
- Identified the Ideal Buyer: Secured a Luxembourg-based biotech company seeking to consolidate its facilities, making 2870 Kilgore Road the perfect fit.
The strategic approach taken by Capital Rivers Commercial led to exceptional results, successfully overcoming the property’s challenges and maximizing value for the seller. By precisely targeting the right biotech buyer and leveraging Sacramento’s growing life sciences sector, the team achieved a sale price above market expectations and completed the transaction significantly faster than industry norms. This case highlights Capital Rivers Commercial’s expertise in positioning specialized properties to attract the ideal buyers and deliver optimal outcomes.
- Achieved $8.5M Sale Price: Sold at 13% above the market average.
- Sold in 150 Days: Completed the sale 40% faster than the market norm.
- Secured a Global Biotech Buyer: Matched the property with a specialized user, ensuring maximum value for the seller.
“We think it was a specialty building that needed a specialty kind of tenant.”
– Ryan Orn, Vice President of Brokerage at Capital Rivers Commercial.
Conclusion: By understanding market dynamics and focusing on the right buyer profile, Capital Rivers Commercial exceeded pricing expectations and closed the deal efficiently. This success demonstrates the firm’s ability to unlock hidden value in specialized properties within emerging markets like Sacramento’s life sciences sector.
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