Sacramento's Leading Business Park for Leasing Industrial and Office Space
McClellan Park covers approximately 3,000 acres, making it one of the largest business parks in Northern California. Located near Downtown Sacramento, the project includes approximately 10MM square feet of existing building and warehouse space. In addition, the project has entitlements for up to 6MM sf of additional development. McClellan is now approaching 90% occupancy, and houses approximately 20,000 jobs. This transition from a former military base that housed approximately 1,500 jobs at closure to a vibrant and significant economic engine for the County of Sacramento is viewed as one of the most successful military base conversions in the country. This is largely due to the team’s aggressive efforts toward creatively solving the unique issues related to military base reuse.
From a Closed Military Base to a Thriving Business Campus
McClellan Park represents an extremely complex project with many stakeholders, including the development team, the County of Sacramento, the Air Force, the FAA, the EPA and other environmental agencies, utility companies, Federal and State historic agencies, community groups, and many others. The LDK Ventures team worked with the various stakeholders in developing the appropriate entitlements, shepherding McClellan through the EIR, CEQA and NEPA process, the Base Reuse Plan, and derivation of Special Plan Area Zoning. Entitlements were documented with a development agreement with Sacramento County.
As a Super Fund site, McClellan Park has had significant environmental hurdles to overcome to maximize the development’s value. The management team has collaborated and negotiated with the EPA, the California Department of Toxic Substances Control, the Regional Water Quality Control Board, the Air Force, and Sacramento County to create the first privatized clean-up of a military Superfund site in the nation. This has required the creation of innovative environmental transactional structures that were not previously allowed, or contemplated, by these various agencies.
Financing & Improving McClellan Park
The LDK team structured comprehensive and creative financing plans. For the park, the Public Facilities Financing Plan included the first Mello Roos Acquisition District on a closed military base, which was completed in 2004 and led to the financing of critical initial infrastructure to support development. In addition, the team applied for and was awarded over $160 million of grants from various federal and state agencies. Private development was financed with a combination of equity, bank debt, and EB5 loans. The team recently completed a $310 million structured financing that included over ten financial institutions and positioned McClellan for future development. In total, there has been over $600M of improvements completed at the business park.
McClellan Park Tenants and Projects Include:
- McClellan Logistics Center – 417,637 sf cross docked speculative building completed and fully leased in 2019.
- Sacramento McClellan Airport – One of the largest privately owned airports in the Country, comprising over 1,000 acres with a 10,600 foot runway. The airport has approximately 800,000 square feet of hangar space.
- McClellan Jet Services - a full-service fixed base operator (FBO) providing aircraft storage, maintenance and fueling, including meeting the demanding requirements of the Coast Guard Air Station, Sacramento.
- McClellan Hospitality Services – Developed, operated and owns the 129-room Lions Gate Hotel. Currently operates a restaurant, catering services, and banquet facility. The full-service restaurant provides fine dining to the tenants at McClellan Park and the public in the historic Officer’s Club setting.
- California State Parks – The 320,000 square foot State archive and museum storage for the State Department of Parks historic records.
- Caltrans META Training Facility at McClellan – The State training campus for the Caltrans Mechanical and Equipment Training Agency.
- Northrop Grumman Mission and Space Systems campus at McClellan – The headquarters for this operation (formerly TRW) and now one of the major business units for Northrop Grumman, the project totals over 280,000 sf.
- The USDA – Forestry Division National Wildfire Academy at McClellan - The team successfully attracted and developed the campus for this vital training facility that serves the forestry operations throughout the country.
- Other tenants include The Defense Microelectronics Agency, General Dynamics, Raytheon, PODS, Siemens, Unison, FEMA, Dome Printing, Kratos, Villara HVAC, Somers Building Maintenance and various other public and private tenants.
To learn more about McClellan Park, visit mcclellanpark.com.