2300 N STREET

LEASED OFFICE BUILDING FOR SALE IN MIDTOWN

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

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

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

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.

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

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

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.

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.

Section Five: Floor Plans

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GROUND FLOORUNIT #1: 900 SFUNIT #2: 900 SF

FLOOR PLANS2300

N STREET

SUITE 2001,800 SF