A new owner of an office building in Roseville believes he can use his Bay Area background to lure firms looking for cheaper employee housing.
Shri Chawla, a Palo Alto-based investor, acquired the Mammoth Professional Building at 300 Harding Blvd. in late July for $5 million.
“I find this area has enormous potential,” Chawla said. For the last eight years, he managed four buildings in Silicon Valley filled with technology tenants, working in such disciplines as artificial intelligence and cloud computing. But housing there is five to 10 times as expensive as Roseville, though the latter also has a good quality of life and strong local schools, he said.
“There are a number of engineers that live in Sacramento and Roseville and are commuting to the Bay Area,” he said. “That is an opportunity.”
Chawla said Mammoth, a two-story, 44,575-square-foot building, could serve as a remote working location for those engineers. With less time on the road, they’d probably be better workers, too, he added.
“Employers would love to have that kind of situation,” he said, adding he’s working with CBRE on finding tenants. “Once things come into place and people understand, I think it would be fantastic.”
The building could also host co-working setups for tenants who need as little as 100 square feet, Chawla said. He believes the push for new tenants will begin in three to six months.
Marcus & Millichap’s Russ Moroz, who handled the sale, said in an email the property had 58 potential buyers who signed confidentiality agreements, from across the U.S. The building sold through an online auction, after the lender foreclosed on it last year. At the time of the auction in June, the building was 85 percent occupied.
Ben van der Meer
Sacramento Business Journal