2012 K St, Sacramento, CA 95814

Scott Kingston

Jack Scurfield

Listed by Turton Commercial Real Estate

$3,300,000

762 days on market

Updated 23 days ago

2012 K Street

Details

APN

007-0086-005-0000

Property Type

Retail, Office (+1)

Sub Type

Creative Office

Square Footage

12,800

Lease Type

NNN

Pro-Forma Cap Rate

7.30%

Price per SqFt

$258

Year Built

1947

Stories

Zoning

C-2 SPD

Investment Type

Net Lease

Retail | 12,800 SqFt

Marketing description

Turton Commercial Real Estate is pleased to offer 2012 K Street (herein referenced as "the Property") for sale or lease in the heart of Midtown's most vibrant retail and entertainment corridor. The Property pro-vides best in class retail and office with ± 5,435 SF of first floor retail, including two recently leased suites, one ± 4,162 SF second generation retail suite and one 1,273 SF "back of house" warehouse space with a roll up door accessing the K Street/L Street alley. Both retail spaces provide ample exposure to Midtown's Saturday farmer's market. The second story of the Property is home to a leasable ± 6,800 SF creative office space, accessed directly off K Street with an exclusive lobby and elevator service, and hosting unique features such as hardwood floors throughout, outdoor patios, and skylights providing ample natural light. The offering of the Property for sale represents an incredibly rare opportunity to acquire a mixed use piece of real estate in an area that is sure to demand market lease rates, quality tenants, and an investment poised for longevity.

The Property is being offered for sale at $3,300,000 indicative of pricing equivalent to approximately $258 per SF and a pro-for-ma 7.3% capitalization rate. This offering creates the unique opportunity for an own-er-user to purchase the asset and control their own real estate, all while growing their business from occupancy of the second floor office space. An owner-user Buyer could occupy a portion or all of the Property for their own business and lease out any unutilized square footage to create an income generating investment. Alternatively, an investor, who is likely the most logical Buyer for the asset, will find the second-generation retail improvements, unique office space, and unbeatable location of the Property all to lead to an attractive lease up and stabilization opportunity which, based on our underwriting, should lead to an estimated 7.3% capitalization rate once fully stabilized, based upon conservative office and retail lease rates compared to surrounding product, such as the MARRS building which is currently supporting retail lease rates well over $3.25 per SF NNN, and office rates of $3.00 per SF FSG. There is not one other opportunity in the GRID positioned for such a successfully lease up and stabilization process with such a central location. See below for "pro-forma" underwriting of the Property.

Building Location

Midtown Sacramento is the perfect blend of carefully curated local, national, and regional retailers with an eclectic mix of high-end demographic occupations embedded in a landscape of unique older buildings paired with mature trees. Business owners, residents and investors near and far have flocked to the center of Sacramento's art, music, and cultural scene to cash in on the fruitful sub-market. Many people consider Midtown to be the most desirable area in the city of Sacramento, with easy freeway access and adjacent to Downtown, Old Sacramento, West Sacramento and East Sac- ramento.

One block away the opportunity, the Lavender Heights neighborhood has emerged as one of the submarket's hottest micro-markets. The neighborhood recently welcomed rainbow cross walks to commemorate the cultural inclusion and progressive thinking of the neighborhood. The neighborhood features some of Sacramento's most successful restaurants and nightlife venues and has over thirty unique mix of local restaurants, art galleries, coffee houses and boutiques. The Lavender Heights district has high foot traffic both day and night and is a local hot spot for those who love to eat and drink and enjoy many of Midtown's most popular establishments. While it is an excellent starting location for the popular Second Saturday festivities, this area is home to many additional noteworthy events such as the Midtown Love, The Midtown Farmers' Market, Midtown Mini, THIS Sacramento block parties, PARK(ing) Day, and so much more!

The Subject Property is located within a short walk from many of Midtown's most desirable amenities, including Temple Coffee, N Street Café, Jack's Urban Eats, Chipotle, Waterboy, Zocalo, Mulvaney's, Der Bier Garten, Cantina Alley, the Burger Patch, Art Beast, Flamingo House, the MARRS Building (home to LowBrau, Nekter Juice Bar, Omakase Por Favor, Azul taqueria & tequila bar, Sleek Wax, Kin Thai restaurant, and Peet's Coffee), Faces, The Depot, Mango's and much more. Furthermore, the Subject Property can take advantage of a handful of service-based amenities within a few blocks including Golden 1 Credit Union, UPS Store, Mike's Camera, Judi's cleaners, and some of the best hairand nail salons in the region.