Valley Shopping Center
Retail | 6.75% CAP | 96,921 SqFt
Marketing description
CBRE is pleased to present the exclusive opportunity to acquire Valley Shopping Center, a 96,921-square-foot grocery-anchored retail center located at 4551-4701 Mack Road in Sacramento, California. Anchored by Food 4 Less and situated on an ±11.4-acre parcel along Mack Road—a primary east-west retail corridor in South Sacramento carrying approximately 31,258 cars per day—the property is currently 92.4% occupied and benefits from a complementary tenant mix including Mountain Mike's Pizza, H&R Block, Louisiana Famous Fried Chicken, and 7 Day Tires. The center also enjoys exceptional shadow anchoring from national brands such as Quick Quack Car Wash, Dutch Bros Coffee, Taco Bell, McDonald's, and Buffalo Wild Wings, all generating significant cross-shopping traffic.
This stabilized investment offers a rare opportunity to acquire established grocery-anchored retail within a dense, supply-constrained South Sacramento infill submarket, where 176,651 residents live within a three-mile radius. The property's leases contain strong scheduled rent increases, and in-place rents currently sit approximately 21% below market, providing meaningful mark-to-market upside as leases roll. With a weighted average lease term of ~6.5 years and a year one NOI of $1,115,940, the offering is well-positioned for investors seeking durable, necessity-based income with embedded growth potential.
Investment highlights
Grocery-Anchored Stability: Anchored by an established, high-performing Food 4 Less (operated by employee-owned PAQ, Inc.), providing necessity-based, recession-resistant traffic and income.
Recent Capital Improvements: The Main Shops Building (excluding Food 4 Less) has a new roof with a 10-year warranty. The Food 4 Less roof was also recently replaced and the entire shopping center parking lot recently received a slurry seal.
High Performing Location: The Valley Shopping Center is a top performing shopping center ranking in the top 25% for site visits among neighborhood centers in the country. Food 4 Less also ranks in the top 36% nationwide and boasts an estimated $36.6 Million/year in sales. (Source: Placer.ai).
Excellent Intrinsic Value: Priced at $170.58/SF on improvements, the property is well below replacement cost.
Stabilized Occupancy with Embedded Growth: 92.4% occupied with scheduled annual rent increases across the existing rent roll, supporting predictable income growth.
New Construction Pad Buildings: New pad buildings with national tenants Dutch Bros (NAP), Quick Quack (NAP), Buffalo Wild Wings (NAP) improves customer traffic and overall synergy within the center.
Mark-to-Market Rent Upside: In-place rents are approximately 21% below market, offering meaningful organic NOI growth as leases roll to current market rates.
Dense, Supply-Constrained Trade Area: 176,651 residents within a three-mile radius, with high barriers to entry limiting future competitive retail development.
Prime Mack Road Corridor Location: Positioned along one of South Sacramento's primary retail corridors with approximately 57,170 cars per day at the intersection, ensuring strong visibility and accessibility.
Exceptional Shadow Anchoring: Immediate proximity to Quick Quack Car Wash, Dutch Bros Coffee, Taco Bell, McDonald's, and Buffalo Wild Wings drives significant cross-shopping and consistent customer traffic.
Debt-Free Offering: Valley Shopping Center will be delivered free and clear of existing financing, maximizing buyer flexibility for initial capital investment and maximizing cash flow.
Diverse, Complementary Tenant Mix: A mix of national, regional, and local service-oriented tenants (Mountain Mike's Pizza, H&R Block, 7 Day Tires, and others) serves daytime and evening customer demand.
Scarcity Value: One of few grocery-anchored, infill investment opportunities currently available in the Sacramento MSA, the Valley Shopping Center offers investors a rare, quality retail investment in a supply constrained market.
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