Investment Overview

We are excited to present a prime investment opportunity with this well-maintained 7,410-square-foot multi-tenant strip center, located on 0.45 acres in Sacramento, CA. Situated along the bustling Arden Way, which sees an average of 26,453 vehicles per day, this property offers high visibility and excellent access. Constructed in 1970, the property has a strong track record of long-term tenancy and is currently 100% occupied by five tenants on NNN leases. The major tenant, Warehouse Paint, occupies two spaces totaling 57.1% of the property (4,235 square feet). Warehouse Paint has been a tenant since 1985 and recently expanded its space in May 2022; their lease is set to expire in April 2027. The second largest tenant, The Dugout Deli, occupies 15.5% of the space (1,150 square feet) and has been leasing since 2017, with their lease expiring in January 2026. Paradise Massage holds 11.1% (825 square feet) and has been a tenant since July 2013, with a lease expiration in July 2025. Nada’s Tailoring occupies 8.8% of the space (650 square feet) and has been occupying the property since October 2015. They are currently on a M-T-M lease. The final tenant, Artsitas, holds 7.4% of the space (550 square feet) with a lease beginning in May 2022 and expiring at the end of April 2025. This property features a unique leasehold interest structure, where the current owner does not own the land but holds the building itself. The land is leased at $3,270 per month through February 28, 2028. The lease agreement stipulates that 90 days before the ground lease expires, both the leasehold owner and the landowner will agree on the Fair Market Value (FMV) of the property, with a 10% of FMV adjustment applied for the next extension period. There are also three additional ten-year options to extend the ground lease. Located approximately 4 miles northeast of downtown Sacramento, the property provides convenient access to major freeways, including Interstate 80 and Highway 50. The surrounding area is enhanced by residential neighborhoods, apartment complexes, and numerous national retailers. With a population of over 142,000 within a three-mile radius and more than 349,000 within five miles, this property enjoys robust market demand. Additionally, its proximity to Arden Fair Mall and regional attractions underscores its strategic appeal. This investment presents an opportunity to acquire a high-yielding asset in the heart of Sacramento, featuring strong historical tenancy, high traffic counts, and the stability of NNN leases. Investors can feel confident in the ongoing prosperity of their tenants and the continued income potential of this exceptional property.