2001-2005 S St 2,644 SF Retail Building Sacramento, CA 95811 $1,050,000 ($397.13/SF)

2001–2005 S Street is a rare retail conversion opportunity on the corner of 20th and S Street in Midtown, Sacramento. Half of the building was previously utilized by an owner-user as office space, while the other half consisted of two retail suites. The property now presents a strategic opportunity for a retailer to occupy the entire building, benefiting from strong surrounding retail synergy, prominent corner visibility, and a prime location one block from the Safeway shopping center and two blocks from the Ice Blocks mixed-use development.
The building can achieve its highest and best value if it is repositioned as a retail building and completely refurbished to warm shell condition with retail store fronts. “Warm shell” condition is the one of the simplest forms of commercial space. It requires a building to be completely demolished to the studs and then re-improved with taped dry wall, ADA restrooms and stubbed mechanical, electrical and plumbing systems. We estimate the cost to achieve this level of improvement to be approximately $264,400 ($100 per SF). In addition, a strong retail or restaurant tenant will require a reasonable tenant improvement allowance which we estimate at approximately $105,760 ($40 per SF). This would mean a total of $370,160 in improvements.
Assuming both items above are provided and improved, we believe the building will be able to achieve a rent of $3.00 per square foot (“SF”) net of all expenses (“NNN”) per month. This would generate a monthly income of approximately $8,532 and an annual net income of approximately $102,384 (which includes parking costs at $100 each for 6 stalls).