Heavy Industrial Warehouse with Rail
New
For Sale
$34,500,000
10268 Waterman Road, Elk Grove, CA 95624
Heavy Industrial zoning, rail service, and high-capacity power support distribution and manufacturing operations.
Property Size250,115 SF
Lot Size20.10 Acres
Price / SF$137.94
Days on Market3
Property Features for 10268 Waterman Road
General Information
Standard status
Active
Size
250,115 SF
Lot size
20.10 Acres
Property subtype
Industrial
Zoning
HI
Warehouse & Industrial
Clear Height
32 ft
Dock-High Doors
11
Drive-In Doors
8
Rail Access
Yes
Power
3,000 amps
Voltage
480 V
Three-Phase Power
Yes
Heavy Power
Yes
Sprinkler System
Yes
Additional Details
Outdoor Storage
Yes
Building Details
Building Size
250,115 SF
Listing Agency:
CBRE | Sacramento
Listed By:
Ryan DeAngelis · License #01280330
(916) 492-6975
Source:
Cbre
Added: Sep 11
Changed: Sep 12
Last Checked: Sep 13 at 5:51AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of CBRE | Sacramento
Investment Insights
Based on property information with market context.
The 250,115-square-foot facility occupies 20.10 acres and is configured for large-scale industrial operations. Building features include 32-foot clear heights, ESFR fire sprinklers, 3,000-amp 480V 3-phase power, 11 dock-high doors, and eight grade-level doors. These improvements accommodate varied shipping, storage, production, and material-handling requirements.
An active Union Pacific rail spur connects directly to the building, adding rail-based logistics capability. The property also provides approximately 2.8 acres of paved yard, with potential for up to approximately 1.8 additional acres of paving. Heavy Industrial (HI) zoning from the City of Elk Grove supports a broad range of by-right uses. The property is located at 10268 Waterman Road in Elk Grove, California, within the Sacramento region’s industrial corridor.
An active Union Pacific rail spur connects directly to the building, adding rail-based logistics capability. The property also provides approximately 2.8 acres of paved yard, with potential for up to approximately 1.8 additional acres of paving. Heavy Industrial (HI) zoning from the City of Elk Grove supports a broad range of by-right uses. The property is located at 10268 Waterman Road in Elk Grove, California, within the Sacramento region’s industrial corridor.
Key Highlights
- 250,115‑square‑foot heavy industrial facility on 20.10 acres
- Active Union Pacific rail spur connects directly to the building
- Approximately 2.8 acres of paved yard with potential for up to approximately 1.8 additional acres
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$1,491,518
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.32%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$29,830,360
$29.8M
Cap Rate 7%
$21,307,400
$21.3M
Cap Rate 9%
$16,572,422
$16.6M
Market Conditions
NOI Build-Up for 250,115 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$1.89M $7.56/SF
− Vacancy
−$136.1K −$0.54/SF
EGI
$1.75M $7.02/SF
− OpEx
−$263.2K −$1.05/SF
NOI
$1.49M $5.96/SF
Area
Elk Grove, CA
Vacancy
7.20%
Lease Rate
$7.56 /SF/Yr
Expense Ratio
15.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$29,830,360
Cap Rate 7%
$21,307,400
Cap Rate 9%
$16,572,422
Alternative Uses
Best Use
Warehouse
$21.31M
$18.64M – $24.86M
NOI $1,491,518 @ 7.0% cap · market cap 4.32%
Second Best
Industrial
$19.47M
$17.04M – $22.71M
NOI $1,362,884 @ 7.0% cap · market cap 3.95%
Theoretical Best
Office A
$62.51M
$54.70M – $72.93M
NOI $4,375,964 @ 7.0% cap · market cap 12.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
32 ft
Clear height
11
Dock-high doors
8
Drive-in doors
Yes
Heavy power
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
292
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95624, CA
66,575
Population
20,740
Households
3.2
Avg Household Size
39
Median Age
33%
College-Educated
89%
High-School Grad
45.6 sq mi
ZIP Area
1,460
Density / Sq Mi
$121,269
Median Household Income
$53,303
Median Earnings
$1,960
Median Rent
$603,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Heavy Industrial zoning, rail service, and high-capacity power support distribution and manufacturing operations.
Where is this warehouse located?
The property is located at 10268 Waterman Road Elk Grove, CA.
What is the asking price?
The asking price for this property is $34,500,000.
What are key features of this property?
This property features: 250,115‑square‑foot heavy industrial facility on 20.10 acres; Active Union Pacific rail spur connects directly to the building; Approximately 2.8 acres of paved yard with potential for up to approximately 1.8 additional acres
