Developer puts HQ on market - Sacramento Business Journal:

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Reynen & Bardis' broker, Ken Turton at , confirmedc the building is for sale at an askingt price ofalmost $6 million. The builder hit hard financialp times during the housing bust and has hired a restructurinyg specialist to increase cash flow and renegotiatewith lenders. But the companh should have no troubl meeting the terms of the Turton said. "Reynen Bardis is confident they can maintaina five-yeae lease-back, and they have assured us of he said. "While $32,000 a montb is a lot of money to youand me, it's not a lot relative to what they do.
" The company had been one of Greatetr Sacramento's largest land developeras during the housing boom and took in $709 million in revenue in 2005. Sinced then, it has missed loan payments, its work force has been and the company no longer needs all ofits two-stor building. A company spokeswoman did not providea comment. The sale-leasebacki model is a complicatedbut time-honored way to raisr capital without having to pack up and find new , another homebuilder with financial woes that attemptecd the same tactic last had to break its lease shortly after it was Dunmore sold its 31,000-square-foot building on Sierra College Boulevare in June for $9 million and signeds a 10-year lease for spac from the new who had been searching for a real estat e asset to generate But within a few months, Dunmor e Homes informed the new ownersa it would have difficulty in making payments, said Sean a broker at who was involved in the deal alongt with his partner Craig Brinitzer.
Dunmore Homex later declared bankruptcy and aske the court for permission to get out of the The new owners put the building back on the It sold this week for the secons time in less than a Fulp declined to namethe buyer, but industry source said it was Paramount Equity which paid $8.6 million. A Paramountt executive did not return a callseeking comment. "Wer knew we had issues on our handsd withthis one, but we had interesy from multiple parties," Fulp said.
Reynen Bardis is likely to find takers for its headquarters becausrthe building's tenant improvements are abovr standard, Turton said, and the $6 million prics is probably well below replacement A second building developed by Reynebn & Bardis and of Roseville, locateed next door to the headquarters, sold last month for $5.4 million to a private investor in the Bay That price, which works out to $166 a squarre foot, was well below replacement cost, accordin g to the building's marketing brochure preparedr by Cornish & Carey Commercial. A representatived from KMS Development declined to commentt onthe sale.
Turtonj represented the buyer in thatdeal -- an investoe called Fox Creek Fund -- while Fulp and Brinitze r represented Reynen & Bardis. That building now is about 60 percentt occupied. Former tenant Corinthian a subsidiary ofReynen Bardis, closed last year.