Manulife US REIT - Annual Report 2021

ANNUAL REPORT 2021 67 Sacramento Market Data Leasing Activity (Sacramento) Tenant Address Class Lease type Size (s.f) Penumbra 620 Roseville Parkway B Expansion 96,505 Gainwell 620 Roseville Parkway B Renewal 96,300 California Dept. of Health Care Services 1700 K Street B Renewal 77,742 State Controller’s Office 10600 White Rock Road B Renewal 76,251 California Dept. of Motor Vehicles 2730 Broadway B Renewal 62,784 Travelers 11090 White Rock Road B Renewal 43,777 Office Sales (Sacramento) Building RBA (s.f) Sales Price (US$) Price ($ p.s.f.) Buyer Seller California Capitol Collection 843,646 116,100,000 $139 Cherng Family Trust Buzz Oates The Ziggurat 373,725 90,000,000 $241 Nome Zurich Parkshore Plaza 271,484 72,200,000 $266 Kingsbarn Asset Preservation 620 Roseville Parkway 193,573 33,200,000 $172 NexCore Strada Ridge Capital Portfolio 199,598 29,500,000 $148 River City Ridge Capital 9832 Business Park Drive 108,020 20,300,000 $187 Corsair David Fite Active Development Pipeline (Sacramento) Building Developer Spec/BTS Completion RBA (s.f) Anchor XC Sacramento Kings Spec 2022 124,471 - of Motor Vehicles all renewed a combined 216,777 sq ft of space across the market. The local investment sales market also had a strong second half, registering US$361.3 million in assets trading hands in deals larger than US$20 million. The Cherng Family Trust’s acquisition of the seven-building California Capitol Collection portfolio for US$116.1 million from Buzz Oates was responsible for much of this activity, although five other substantial sales took place in the second half of the year, underlining investors’ search for yield as pricing in the Bay Area and Southern California remains out of reach for many potential buyers. Outlook Sacramento’s underlying demographic and economic drivers will keep activity stable even with a lower presence of higher-growth industries. With only one property currently under construction – the renovation of 6609 J Street (known as XC) – vacancy is unlikely to rise much further, although a lack of quality product is likely to catalyse new speculative construction.