Investment Overview

The subject property, referred to as “Gold Rush Plaza”, is a 13,010-square foot multi-tenant retail strip center situated on 1.39 acres in Folsom, California. More specifically, the property is located at the signalized intersection of Folsom-Auburn Road and Folsom Lake Crossing, just below the Folsom Lake Dam. Constructed in 2006, the building is currently 79% occupied by four tenants all on triple-net leases. Gold Rush Plaza is comprised of 8 total suites of which 6 suites are currently occupied by 4 tenants. There are currently 2 vacant suites in the center. Trek (bicycle) Retail Corporation has been a tenant in the center since 2009 and has expanded their square footage into 3 total suites equating to 52.3% (6,681-square feet) of the total square footage of the center. Trek Retail Corporation recently renewed their leases in all 3 suites for an additional 5 years (expiring 3/31/2030). The three remaining tenants consist of Pham Nails, Healthy Massage, and Poke N Tea. Pham Nails has been a tenant in the center since 2010, occupying 9.2% of the center and has a lease expiration date of 4/30/2027. Both healthy Massage and Poke N Tea have been tenants in the center since 2022 and both occupy 9.2% of the center individually. Healthy Massage’s lease is set to expire on 7/31/2027 and Poke N Tea’s lease is set to expire on 8/31/2032. All current leases are on a tiple-net lease structure with tenants reimbursing 100% of their pro-rata share of the building’s expenses. One of California’s top cities, The City of Folsom is renowned for its highly ranked schools, low crime rate, strong employer base, natural amenities, and abundant recreational opportunities. Folsom is located 25 miles east of Sacramento. The city is only a two-hour drive from the San Francisco Bay Area and 90 minutes from South Lake Tahoe. Folsom continues to be a choice for the growing population of people seeking an affordable, live-work-play lifestyle given its proximity to the Bay Area, Napa Valley, and Lake Tahoe. Currently 79% occupied, the Gold Rush Plaza offers an opportunity for an investor to lease up the two vacant suites to achieve a cap rate north of 8%. The 7.93% proforma cap rate included in the financials includes a 5% vacancy factor. Furthermore, all current tenants are at market rental rates with conservative proforma rents for the vacant units at $1.50 per square foot triple-net.