2523 J St 5,479 SF Office Building Sacramento, CA 95816 $1,400,000 ($255.52/SF) 7.80% Cap Rate

Turton Commercial and House Real Estate are pleased to market for sale 2523 J Street (the “Property”), a mixed-use office and retail building located in the heart of the midtown, Sacramento. The Property is a two-story building constructed in 1962 and features seven separate offices and retail spaces measuring between 400 and 1,000 square feet. The Property is currently 63% occupied with three contiguous office spaces on the second floor totaling 1,580 square feet available for an owner-user to occupy at closing. Our underwriting assumes that an owner-user pays $2.00 per square foot modified gross for those three spaces. The remainder of the building is leased to four successful professional and personal-service businesses on modified gross lease structures paying a combined $8,800 per month including on-site parking.
The Property measures 4,341 net rentable square feet and 5,479 gross rentable square feet across two stories. The difference between the sizes is due to a large covered outdoor patio and walkway on the second floor which serves as a nice outdoor seating area for those tenants. Other notable features or upgrades include 7 gated and secure parking stalls access from Improv Alley, new main electric panels, updated common area bathrooms, all units have separate meters thus tenants pay their own electric costs, and the entire building is secure with keypad entry points. The Property is listing for sale at $1,400,000 which equates to a 7.80% capitalization rate on pro-forma income and expenses.