VALUE-ADD MULTI-TENANT INDUSTRIAL PROJECT IN INFILL SACRAMENTO LOCATION
* 100% leased asset with a diversified rent roll and durable in-place income. The Property includes 11 tenants with suites averaging 2,300 SF. Minimal office buildout (±15%) and oversized 10’ x 12’ roll-up doors on every suite.
* CBRE Econometric Advisors projects strong rent growth for industrial assets in Sacramento, totaling as much as +/-18% over the next 5 years. With a remaining WALT of 2.24 years, the rent roll can unlock accretive value with upcoming renewals at accelerated market rates.
* Situated off a main street with instant access to the I-80 and Business 80 freeways, the Property is ideally positioned in a dense infill location with 380,986 residents and 89,444 daytime employees within a 5-mile radius.
* Ownership has recently spent over $400,000 on property improvements, including roof re-coating, exterior paint, asphalt upgrades, fence & gate repairs, and interior renovations.
STRONG MARKET FUNDAMENTALS THAT SUPPORT UPSIDE
* The incubator industrial segment of the market is outperforming the overall market. The overall Sacramento industrial market (194M SF) has a low vacancy rate of 5.1%, but the incubator segment (10.25M SF) has a vacancy rate of only 2.4%.
* The Property sits within the I-80/ Roseville Road Submarket, which has the second highest amount of incubator industrial space in the region (1.3M SF), one of the lowest vacancy rates (0.5%) and average asking rents of $0.94/SF/month NNN.
* Currently, in the entire I-80/ Roseville Road Submarket, there is only 7,150 SF of incubator space available for lease.
* There are currently no multitenant industrial buildings under construction in Sacramento, contributing to this supply constrained segment of the market.