Prime Miracle Mile Mixed-Use Value-Add Opportunity!
Mixed Use | 16,136 SqFt
Marketing description
This mixed-use property offers investors a compelling value-add opportunity with multiple, clearly defined pathways to increase NOI. The ground floor consists of five retail suites with three current tenants paying below-market rents on Modified Gross leases with property tax pass-throughs. One tenant currently occupying three adjoining spaces as a hair, nail salon, and spa, is in the process of vacating, creating the opportunity to re-lease those units at market rates and restructure them to new NNN leases. Additional upside exists with the remaining tenants through rent adjustments and the potential to transition leases to NNN structures by the end of 2028. The second floor, formerly medical and office space and currently used for storage, presents further income potential through lease-up, redevelopment, or adaptive reuse, subject to Buyer’s investigation and city approval. This property provides stable income with meaningful upside through lease restructuring and repositioning.
Located on Pacific Avenue within Stockton’s historic Miracle Mile retail corridor, this property sits in one of the city’s most recognizable and well-established shopping, dining, and lifestyle destinations. The site benefits from strong daily traffic, excellent visibility, and a dense surrounding residential base, while being surrounded by a mix of national and regional retailers including Starbucks, Dutch Bros, McDonald's, Walgreens, Jack in the Box, Save Mart, and numerous restaurants and retail service businesses. The property is strategically positioned between El Dorado Elementary School and Stockton Unified’s Adult School facilities to the south and the University of the Pacific just a few blocks to the north, with San Joaquin Delta College and major regional retail anchors—including Sherwood Mall and Weberstown Mall—located further north, supporting strong daytime population, education-driven traffic, and consistent consumer activity along the corridor. This highly active Miracle Mile trade area continues to support strong tenant demand and sustained retail vibrancy.
Investment highlights
Clear Value-Add Lease Upside – Opportunity to restructure existing below-market Modified Gross leases to market rents with NNN structure. One tenant currently occupying three adjoining suites is in the process of vacating, creating a near-term lease-up opportunity potentially as early as 2026, with the ability to re-tenant at market rents and convert to NNN. Additional conversion and rent adjustment opportunities exist with the remaining tenants by 2028.
Strong Value-Add Yield Growth – Operating cap rate improves from 3.21% at acquisition to approximately 6.11% in Year 2, reaching 10.11% in Year 3 as rents are brought to market and leases transition to NNN structures.
Significant Square Footage + Bonus Basement – Approximately 8,237 SF of ground-floor retail and 7,899 SF of second-floor space, totaling ±16,136 SF, plus a bonus basement providing additional utility and potential storage.
Compelling Price Metrics – Pricing equates to approximately $127.47 per SF based on the retail space alone, or just $65.07 per SF when including the full ±16,136 SF—well below replacement cost, representing an exceptional basis that “you can’t even build for.”
Individually Metered Utilities – Building is individually metered for gas, electricity, and even water, supporting efficient expense control and an easier transition to NNN structures.
Existing Expense Participation – Current leases already include property tax pass-throughs, further supporting operating cost recovery.
Flexible CG Zoning & Redevelopment Potential – General Commercial (CG) zoning allows a wide range of uses and creates meaningful upside for the ±7,899 SF second floor through potential office, medical, education/training, wellness, community, boutique hospitality, or residential-over-retail concepts, subject to Buyer investigation and city approvals.
Parking Convenience – Street parking along Pacific Avenue plus public parking to the rear, supporting tenant operations and consistent customer activity.
Prime Miracle Mile Placement – Positioned directly on Stockton’s iconic Miracle Mile corridor, surrounded by established retail, dining, educational, and lifestyle demand drivers.
Miracle Mile Façade Improvement Grant/Loan Program – Property owners along the Miracle Mile Corridor may qualify for the newly introduced Miracle Mile Façade Improvement Grant/Loan Program, offering financial assistance for exterior upgrades, aesthetic enhancements, and revitalization efforts—supporting long-term value, tenant appeal, and overall corridor improvement, subject to program guidelines and eligibility.
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