2300 - loopnet · 2020. 2. 6. · 2300 n boasts an investment, owner-occupant, or residential...
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2300 N STREET
LEASED OFFICE BUILDING FOR SALE IN MIDTOWN
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2300N STREET
2409 L STREET, STE 200 SACRAMENTO, CA 95816
916.573.3300 TURTONCOM.COM
© 2020 The information contained in the Offering memorandum is confidential and is not to be used for any other purpose or made available to other persons without the express written consent of Turton Commercial Real Estate (“TCRE”), Ken Turton or the owner. The material contained herein is based upon information supplied by owner in coordination with information provided by TCRE from sources it deems reasonably reliable. Summaries of documents are not intended to be comprehensive or all-inclusive but rather a general outline of the provisions contained herein and subject to more diligent investigation on the part of the prospective purchaser. No warranty, expressed or implied, is made by owner, TCRE or any other respec-tive affiliates, as to the accuracy or completeness of the information contained herein or any other written or aral communication provided to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communication. Without limiting the general nature of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business affairs, specific finances or specific condition of the Property since the date of preparation of the information. Prospective purchaser shall make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, inspection and review of the Property, including but not limited to engineering and environmental inspec-tions, to determine the condition of the Property and the existence of any potential hazardous material located at the site.
JON LANGVICE PRESIDENT - LIC. 01934934916.573.3302JONL ANG@TURTONCOM.COM
JOHN MUDGETTVICE PRESIDENT - LIC. 01765754916.573.3306JOHNMUDGET T@TURTONCOM.COM
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2300 N BOASTS AN INVESTMENT, OWNER-OCCUPANT, OR RESIDENTIAL CONVERSION OPPORTUNITY.
Section One: The Opportunity
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THE OPPORTUNITY
2 3 0 0 N S T R E E T , S A C R A M E N T O , C A 9 5 8 1 6
2300 N Street (the “Property”) is 3,600 square
foot, two-story office building situated on a
6,400-square foot parcel of land in Midtown. The
Property is 100% leased to three office tenants
with flexible lease terms. All three office tenants are
on “modified gross” lease structures whereby the
tenants pay SMUD, PG&E, and janitorial in addition
to the base rent. The Property is an attractive ful-
ly leased passive investment, but the second floor
(1,800-square feet) could also be made available
for an owner-user. Further, the property is an in-
teresting residential conversion opportunity as it
was originally built as a four-plex and still boasts
residential finishes and layout. The Property, zoned
R3A, would allow a multi-family conversion by right;
however, the Property is currently grandfathered into
an office use. Lastly, the Property features fourteen
(14) on-site parking stalls, a valuable amenity in the
Midtown submarket. The Property is being offered at
$1,300,000 which equates to a 4.12% capitalization
rate on existing income.
4.12%3,600 $1,300,000PRICESF BUILDING CAP RATE
R3AZONING
14ON-SITE PARKING STALLS
2300N STREET
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Address: 2300 N St, Sacramento, CA 95816
Building Size: 3,600 SF
Ground Floor Unit #1: 900 SF
Ground Floor Unit #2: 900 SF
Upstairs Unit: 1,800 SF
Parcel Size: 6,400 SF
Price: $1,300,000
Net Operating Income: $53,600
Cap Rate: 4.12%
Occupancy: 100%
Year Built: 1925
Year Renovated: Approx. 1980
Zoning: R3A
On-site Parking: 14 stalls (7 tandem stalls)
Construction Type: Masonry
PROPERTY DETAILS
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Section One: The Opportunity 2300N STREET
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The Property is an attractive investment for anar-
ray of buyers, from passive and value-add investors
to owner-users:
Situated in the heart of Midtown, the Property
is a prime investment opportunity for the passive
or tax-deferred exchange investor. The building is
currently 100% leased with long-term tenants who
The Property is a great opportunity for an own-
er-user. By the end of 2020, an owner-user could
occupy the entire 1,800-square foot upstairs office
have all expressed a desire to stay in the building
for the foreseeable future. Over the last decade,
the building has experienced less than 6 months of
vacancy and downtime between all three units. The
demand for small, quality office space in Midtown
has never been higher and this building can accom-
modate an array of office uses. Further, all three
space. Both ground floor tenants are committed
to the Property through 2021, providing a monthly
income of approximately $3,250 to offset acquisi-
office units are move-in ready and would require
negligible stabilization costs to re-lease should a
tenant vacate. The building currently produces a
gross annual rent of $81,600 with a net operating
income of $53,600. Based upon a purchase price
of $1,300,000, the first-year capitalization rate is
approximately 4.12%.
tion and loan costs. Currently, there are 8 on-site
parking stalls allocated to the upstairs unit which
could be used exclusively by an owner-user.
INVESTMENT
OWNER-USER
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Section One: The Opportunity 2300N STREET
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Section One: The Opportunity
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Nearby Mural by Nate Frizzel
2300N STREET
RESIDENTIAL CONVERSION
PARKING
The Property lends itself nicely to a residential
conversion. Originally built as a four-plex, the
Property was transitioned to traditional office
space in the mid-1980s. The two upstairs units
were combined to create a single, 1,800-square
foot office suite; the two ground floor units are
The Property features fourteen (14) on-site park-
ing stalls, comprised of seven (7) tandem stalls. Ten
(10) of the on-site stalls are currently allocated to
the existing tenants for free; however, market rate
approximately 900-square feet. The units still
feature some of the original residential finishes
such as coved ceilings, crown molding, multi-
ple fireplaces, built-in storage, and hardwood
floors. With short-term leases, a buyer could
convert the building back to four residential
for tandem stalls in Midtown is approximately $100
per stall ($50 per car). Therefore, over time, a buyer
could begin to lease the stalls to the existing tenants
or neighboring residential tenants, generating an
units when the existing tenants vacate the build-
ing. The building is zoned R3A, which permits
such a conversion by right. Average residential
rents in Midtown are $3+ per square foot plus
utilities and reimbursement.
additional total sum of $700 per month or $8,400
per year. In addition to the on-site parking, the ten-
ants have access to ample free street parking within
a block of the Property.
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Section Two: Building Location
2MINS TO THE
MARRS BUILDING
5MINS TO
THE ICE BLOCKS
6MINS TO THE
STATE CAPITOL
5MINS TOSAFEWAY
9MINS TO DOWNTOWN
COMMONS & GOLDEN 1
2MINS TO TEMPLE
COFFEE ON K STREET
10MINS TO OLD SAC/
WATERFRONT DISTRICT
4MINS TO SUTTER
GENERAL HOSPITAL
3MINS TO SUTTER’S
FORT PARK
3MINS TO THE
HANDLE DISTRICT
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BUILDING LOCATIONIN THE MIDDLE OF A HIGHLY-DESIREABLE NEIGHBORHOOD
The Property has one of, if not, the finest locations in the highly desirable midtown submarket of Sacramento and is within easy driving distance of virtually every
significant landmark in Sacramento’s urban core:
Nearby Mural by Nate Frizzel
EASY ACCESS TO THE AMERICAN RIVER BIKE PATH: 32 MILES OF PAVED TRAIL FOLLOWING THE LENGTH OF THE AMERICAN RIVER.
Nearby Mural by Shaun Burner & Miguel Bounce Perez
2300N STREET
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Jack’s Urban Eats
Waterboy
Section Two: Building Location
Buckhorn GrillAioli BodegaSaigon Alley
Old SoulCrepvilleBroderickThe Rind
Make Fish PokeZocalo
58 DegreesFieldwork BrewingPushkin’s Bakery
Chipotle
Bombay Bar & Grill
Alley Katz
TownHouse Lounge
Old Tavern Bar
Pieces Pizza
Convention CenterMikuni
StarbucksPieology
P.F. Changs
Devine
JalapenosZelda’s
I love TeriyakiN Street Cafe
Federalist
N
2300 N Street
23rd
Station 16Petra Greek
FirestoneThe Mix
de Vere’s
Mulvaney’s
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MARRS
HeadhuntersBadlands
FacesThe DepotMango’s
Tapa the WorldKasbah
O Toro Sushi Shabu
StarbucksNoah’s Bagels
Domino’sTank House BBQ
Streets of LondonSawasdee Thai
Spaghetti Factory Low BrauBlock ButcherComedy Spot
AzulPizzeria Urbano
Peet’s Coffee
KuprosThe CabinCostanza’s
Center of Praise
Temple Coffee
The Trade
L
2300N STREET
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The Property also benefits from proximity to several popular restaurants and bars, with easy access to every corner of the growing city.
POPULAR RESTAURANTS NEAR 2300 N STREET (NOT ALL ARE MENTIONED HERE):
58 Degrees & Holding Co.
Ace of Spades
Aioli Bodega Espanola
Amaro Italian Bistro & Bar
Art of Toys
Azul Mexican
Badlands
Bar West
Bento Box
BevMo
Block Butcher Bar
Bottle & Barlow
Broderick Midtown
Buckhorn Grill
Burger Patch
Burgers and Brew
Cafe Bernardo
Café Bernardo’s
Cantina Alley
Centro Cocina Mexicana
Chipotle
Cornerstone
Crepeville
Der Biergarten
Dos Coyotes
Eatuscany Cafe
Elixir Bar & Grill
Faces
Federalist Public House
Fieldwork Brewing Co.
FishFace Poke Bar
Fit Eats
Fox & Goose Public House
Ginger Elizabeth Chocolates
Grange
Highwater
Hot Italian
I Love Teriyaki
Identity Coffee
Iron Horse Tavern
Jack’s Urban Eats
Karma Brew
Kru Japanese
Bombay Bar & Grill
Kupros Craft House
Lowbrau
Lucca
Luna’s Cafe & Juice Bar
Mango’s/Burgertown
Make Fish
Mercantile Saloon
Metro Kitchen & Drinkery
Mikuni Sushi
Monkey Bar
Mulvaney’s B&L
N Street Cafe
Nekter
Nido
Nishiki Sushi
Old Soul Coffee
Pachamama Coffee Coop
Paesano’s
Paragary’s
Pizzeria Urbano
Portofino’s
Press Bistro
Pronto Pizza
Pushkin’s Bakery
Q Street Bar & Grill
R15
Red Rabbit
Rick’s Dessert Diner
Roxie Deli and Barbecue
Sakamoto
See’s Candies
Shady Lady
Shoki Ramen House
Skool
Squeeze Inn
Sun & Soil Juice
Tank House BBQ
Tapa the World
Tea Cup Cafe
Temple Coffee
Thai Basil
Thai Canteen
The Bread Store
The Golden Bear
The Mill Coffee House
The Porch
The Press
The Rind
The Waterboy
Tres Hermanas
Uncle Vito’s Pizza
University of Beer
Waffle Square Country Kitchen
Yogurt a GoGo
Zelda’s Pizza
Zocalo
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NEARBY AMENITIES
SOUTHSIDE PARK
STATE CAPITOL
ROOSEVELT PARK
SUTTER’S FORT
WINN PARK
TRUITT BARK PARKFREMONT PARK
16TH
P
R
20TH
L2300 N STREET
GOLDEN 1 CENTER
Section Two: Building Location 2300N STREET
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Sacramento is the Capitol of California, the fifth
largest economy in the world. While perhaps not con-
sidered as prolific as many of the tourism-based cit-
ies in California such as San Francisco, Los Angeles
and San Diego, being the hub of California’s govern-
mental structure provides an incredible amount of
economic stability throughout the region. In addition,
Sacramento is being increasingly recognized as an
outdoor enthusiast’s dream city with its remarkably
central location to Lake Tahoe, the Sierra’s, Yosemite
and the Coast.
In a recent study completed by WalletHub for Na-
tional Nutrition Month, Sacramento was ranked the
5th healthiest city in the United States among 100
large cities (ranking higher than the likes of Denver,
Colorado Springs, San Francisco, Portland, Austin,
San Antonio and Seattle). Forbes magazine ranked
Sacramento as the 10th healthiest city in the United
SACRAMENTO
CALIFORNIA’S FASTEST-GROWING METROPOLITAN AREA
215+15.3 MILLION 71,335DAYTIME EMPLOYEESANNUAL REGIONAL VISITORS BARS / RESTAURANTS
States versus all cities. A big part of this recogni-
tion stems from the cities’ proximity to the American
River. Hiking trails and white-water rafting abound
along the American River as well as one of Sacra-
mento’s crown jewels - the 32-mile American River
Bike Trail which runs entirely along the river from
Beal’s State Park to Discovery Park where it conjoins
with the Sacramento River to Old Sacramento on the
riverfront (only 20 blocks from the Subject Property).
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Section Three: Sacramento 2300N STREET
THERE’S A REASON EVERYONE IS COMING HERE.
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ECONOMICS
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Section Four: Economics
E S T I M A T E D O P E R A T I N G E X P E N S E S ( A N N U A L )
2300N STREET
City of Sacramento Utilities $2,700
Garbage $1,500
Property Taxes $14,775*
Property Insurance $2,850
Landscaping $1,440
Pest Control $720
Maintenance $750
Property Management $3,265
Janitorial Tenant Pays
PG&E and SMUD Tenant Pays
Total OpEx $28,000
Net Operating Income $53,600
*Reassessed for the purchase price
R E N T R O L L
Tenant Size Expiration Date Monthly Rent Lease Structure Next Rent Increase
Property Management 900 SF 4/30/2022 $1,620 Modified Gross $1,665*
Acupuncture 900 SF 7/31/2022 $1,600 Modified Gross $1,640**
Law Firm 1,800 SF 9/30/2020 $3,330 Modified Gross $3,420***
Parking 12 Stalls $250
Total 3,600 SF $6,800
Annual Rent 81,600
*rent increases on 5/1/2021**rent increases on 8/1/2021***Tenant has one, two (2) year option to extend the lease with fixed rent increases. The option must be exercised no later than May 30, 2020.
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Section Five: Floor Plans
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GROUND FLOORUNIT #1: 900 SFUNIT #2: 900 SF
FLOOR PLANS2300
N STREET
SUITE 2001,800 SF
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