A freshly built UC Davis Health logistics hub in southeast Sacramento just changed hands for serious money, signaling that investors are still hungry for mission-critical industrial real estate tied to health care.
Boyd Watterson Asset Management has acquired the roughly 82,000-square-foot industrial facility at 3575 Business Drive, a built-to-suit warehouse that opened in 2024 and now serves as a pharmacy and distribution workhorse for the university’s health system.
Buyer, Price And Seller
According to the Sacramento Business Journal, Boyd Watterson paid about $41 million for the property, which was sold by local developer Jackson Properties and logged in commercial real estate data services. That price pencils out to nearly $500 per square foot, a number that makes clear investors are willing to pay up for specialized medical logistics assets with strong tenants.
Local Reporting And Confirmation
The deal also drew attention from industry trades. Commercial Property Executive reported the same sale price and buyer, framing the transaction as part of a broader push by institutional capital into health system-linked industrial space.
What The Building Does For UC Davis Health
Per UC Davis Health, the property operates as the Pharmacy Shared Services Center, handling pharmacy office functions and distribution for the health system. A listing on LoopNet shows approximately 81,900 to 82,100 rentable square feet on a 4.6-acre site, with a 2024 completion date and a fully leased status when it was brought to market.
Financing And Development Background
Market data cited by Commercial Property Executive indicate that City National Bank originated a construction loan of about $27 million in 2022 to help finance the project, which officially came online in 2024. The facility is part of Jackson Business Park and was developed to meet LEED-certified standards, according to that trade report.
Why Investors Care
Specialized industrial buildings with strong institutional tenants, especially large health care systems, tend to throw off the kind of steady cash flow that pension funds and private capital like to see. Research and reports from Yardi Matrix show industrial deal activity is still holding up in 2026 as buyers chase creditworthy, mission-critical properties rather than splashy speculative plays.
For Sacramento, the sale is another data point that investors are still circling industrial assets near the region’s health care and logistics hubs. UC Davis Health continues to administer the lease at 3575 Business Drive, while Boyd Watterson now holds an asset that quietly underpins a chunk of the university’s off-campus operations.
