916-926 22nd Street, Sacramento, CA 95816 For Sale

Turton Commercial Real Estate is pleased to present the opportunity to purchase "The Corum Building", a mixed-use project in the heart of Midtown, Sacramento.

The Corum Building (hereby, the "Property") is a value-add mixed-use project in Sacramento, California. Enjoying a high visibility location along J Street, a main arterial road that connects Downtown to East Sacramento, the Corum Building is a 3-story midrise project comprised of 42 residential units totaling 24,338 square feet and two ground floor retail tenants totaling 5,220 square feet. Altogether, the building is approximately 29,558 square feet situated on a 13,068 square foot parcel of land at the corner of 22nd and J Streets in Midtown.

The Property is comprised of two separate structures that are connected by an outdoor stairwell and breezeway. 926 22nd Street, which is located at the corner of 22nd and J Streets, is a 3-story brick-clad building that includes a ground floor retail space and 25 studio units across the second and third floors. All studio units are accessible via secured indoor common area and stairwells. All twenty-five main residential and retail electrical panels at this building have been replaced within the last two years. The second structure is located at 916 22nd Street, which is situated at the corner of 22nd Street and Improv Alley. The three-story building features 17 total units including 16 one-bedroom and one-bathroom units and a single two-bedroom and one-bathroom unit on the ground floor. The units are accessible via an outdoor courtyard, stairwell, and open walkways on each floor. The shared laundry facility and 8 secure on-site parking stalls for the entire property are also located on the ground floor of this building. The residential units have been updated to varying degrees over the last two decades, but most include newer LVP flooring or refinished original hardwood floors, updated cabinetry and lighting, and window air conditioning units. The roofs on both structures have been replaced within the last five years.

The ground floor of the Property is leased to two retail tenants, including Otoro Sushi, an established sushi restaurant with a long track record of success at the property. Otoro leases approximately 4,550 square feet comprising nearly the entire ground floor of 926 22nd Street and boasting about 85 linear feet of glass storefront along J Street. The initial lease commenced in March 2016 but was recently extended through March 2035. The tenant is currently paying $1.94 per square foot, triple net with scheduled rent increases. The other retail tenant is a local non-profit organization, Sista Bees, which leases a 670-square office along 22nd Street. Sista Bees currently pays $1,000 per month, full-service gross, and the lease expires in August 2026. It is possible to convert the existing Sista Bees office into an additional residential unit, thereby increasing the total residential unit count to 43 units.

The Corum Building is being offered at $7,100,000 which equates to a 5.99% blended capitalization rate based upon actual income and expenses with reassessed property taxes. The blended capitalization rate is derived via 5.53% capitalization rate on the residential portion of the Property and an 8% capitalization rate on the retail portion of the Property. The in-place net operating income is $425,386 per year including a market vacancy reserve and reassessed property taxes. By implementing rent increases over time, the market net operating income would increase to $578,237 resulting in a proforma capitalization rate of 8.14%. The Property is priced well below replacement cost at $240 per square foot.

The Corum Building offers an exceptional opportunity to live in the heart of Midtown Sacramento, one of the city's most vibrant and walkable neighborhoods. Positioned at the prominent corner of 22nd and J Street, residents enjoy immediate access to the restaurants, cafes, bars, boutiques, and galleries that have made Midtown one of the region's most desirable urban neighborhoods.

Living at The Corum means stepping outside to some of Sacramento's most popular destinations. Residents are just blocks from the Midtown Farmers Market, Second Saturday art walks, neighborhood parks, fitness studios, grocery stores, and an ever-changing collection of locally owned businesses. The neighborhood's mix of housing, offices, entertainment, and dining creates activity throughout the day and well into the evening, offering a true live-work-play lifestyle.

The property's ground-floor retail further enhances that experience, providing convenient neighborhood amenities while contributing to the energy of the streetscape. Whether grabbing coffee before work, meeting friends for dinner, shopping locally, or enjoying Midtown's nightlife, residents can accomplish much of their daily routine on foot. The Corum Building combines the convenience of urban living with the character and authenticity that continue to make Midtown one of the city's most sought-after places to call home.