Northpoint Office Towers - Building II 5380 Pirrone Rd 42,062 SF 100% Leased Office Building Salida, CA 95368 $9,709,000 ($230.83/SF) 8.50% Cap Rate

Titillating headlines about high vacancy rates in core markets tend to overshadow other stories about emerging opportunities as many workers move to smaller, more affordable markets and companies adapt to work-from-home protocols. Assets in less-obvious markets are thriving on renewed growth driven by demographic changes, and they represent a superb opportunity for astute investors. 5380 Pirrone Road in Salida is one of those opportunities.
The local office market has a Class A/B+ vacancy rate of 4.4%, no new speculative office construction, and economic barriers to entry. The Subject enjoys good cash flow and significant upside potential, a WALT of 2.76 years, and is realistically priced. The Central Valley office market remains comparatively stable in contrast with some of the larger urban office markets in Northern California.
A lack of new development and on-going population growth have served to limit overall vacancy rates. Top tier assets, like the Subject, are the primary beneficiary of most new requirements and relocations as employers look to create a desirable workplace to attract and retain employees in the region.
CBRE, Inc., as exclusive advisor, is pleased to offer this asset for sale. It is a freeway-facing, three-story office building totaling ±42,062 rentable sq. ft. This attractive, modern Class A property was constructed in 2008 and is 100% leased to three tenants. Two of the leases totaling 13,502 sq. ft. were signed in the middle of Covid and the tenants commenced their occupancies in October of 2022. The largest tenant, San Joaquin Valley College (SJVC) has occupied two floors since 2008.
The asset is priced at $9,709,000 which equates to $231 per sq. ft. The price represents a 8.5% Year 1 capitalization rate on projected NOI as of September 1, 2025, including any scheduled rent increases. The Building sits on its own separate parcel within the Northpoint Office Towers campus and shares common area expenses with its neighbor.