Development site

Turton Commercial Real Estate is pleased to bring to market the assemblage of 1025 19th Street and 1910 J Street (the “Property”) in the heart of Sacramento’s highly desirable Midtown Grid. Combined, the two parcels total approximately 62,200 SF representing the largest contiguous piece of land available for acquisition in the highly desirable Midtown Grid in the last two decades. In addition, the Property is located in an Opportunity Zone.
The Property is being offered at a price of $7,900,000 representing a per square foot price of $127 per SF for the land and $278 per SF for the buildings.
1910 J Street is currently leased by the Old Spaghetti Factory thru 2025. The current lease rate provides for a minimum rent of $180,000 annually NNN or 6% of gross sales whichever is higher. Historical average income has averaged $220,000 NNN annually. The Tenant’s current lease term also provides protection against property tax increase due to sale. However, Tenant’s final Option to Extend thru 2030 resets rent to “fair market value”. Fair market value rents in the Midtown Grid are approximately $2.50 - $3.00 per SF per month NNN with no property tax protection. This would provide minimum rent of $360,000 annually.
Tenants have expressed an interest in working with a potential developer on being part of a larger mixed-use project. In essence, the Property offers a mixed-use multi-family residential developer the opportunity to acquire the largest and arguably most valuable contiguous piece of land in the Midtown Grid while maintaining a solid cash flow through entitlements and permits while benefitting from the Opportunity Zone tax protections.