X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SACRAMENTO-A 22,750-sf 90% leased strip center here has changed hands for $4.35 million, which was slightly above the list price and equates to an initial cap rate in the 6% range. The buyer and seller were private family trusts; CB Richard Ellis brokered both sides of the transaction.Fronting Cottage Way at Fulton Avenue, the center is located near several car dealerships. The center’s anchor is a stand-alone Kragen Auto, which has been a tenant for 20 years. The seller’s broker, John Gianulias of CBRE‘s Sacramento office, tells GlobeSt.com the strip retail on the site has two empty units, each about 1,100 sf. He suspects it won’t be difficult to lease the new spaces given the submarket has a vacancy rate in the low single digits.The buyer’s broker, Trevor Thorpe of CBRE’s San Francisco office tells GlobeSt.com there’s additional upside to be had as leases rollover because rents in the center average $1.20 per sf per month while the average asking rate in the submarket is closer to $1.90 per sf. Two-thirds of the in-line tenants have leases that are expiring in the near term, he says.Thorpe says the area has seen some major changes in recent years, including the renovation of numerous auto dealerships along Fulton Avenue and the redevelopment of a former Big K Mart into a new Home Depot. “Our clients felt secure buying a center below replacement value with a solid near-term upside potential,” he tells GlobeSt.com. Nicole Hauscarriague worked with Thorpe in representing the buyer. John DuBois worked with Gianulias.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.