Sacramento Retail Plaza For
For Sale
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901-907 Howe Ave, Sacramento, CA
Retail plaza on Howe Avenue in Sacramento, CA for sale.
Property Size15,500 SF
Lot Size0.92 Acres
Price / SF$464.52
Days on Market1590
Property Features for 901-907 Howe Ave
General Information
Standard status
Active
Size
15,500 SF
Lot size
0.92 Acres
Property subtype
RETAIL
Listing Agency:
Century 21 - Mueller Commercial | Sacramento
(916) 704-9341
Listed By:
Daniel Mueller
Source:
Moodyscre
Added: Apr 29, 2022
Changed: Aug 15
Last Checked: Sep 4 at 7:50AM
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 Century 21 - Mueller Commercial | Sacramento
Investment Insights
Based on property information with market context.
The CW Net Plaza is located in Sacramento County. Constructed in 1969, the masonry-stucco building features a tile flat roof. The property is situated on 0.92 acres of commercially zoned land. Parking is provided by 55 surface spaces, resulting in a ratio of 3.5 spaces per 1,000 square feet. The property benefits from its location at a signalized intersection and includes a pylon sign available for tenant use. The property size is 15,500 square feet.
Key Highlights
- Located in Sacramento County.
- Commercially zoned land.
- Signalized intersection location.**
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
$240,391
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
3.34%
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%
$4,807,820
$4.8M
Cap Rate 7%
$3,434,157
$3.4M
Cap Rate 9%
$2,671,011
$2.7M
Market Conditions
NOI Build-Up for 15,500 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
$364.6K $23.52/SF
− Vacancy
−$21.1K −$1.36/SF
EGI
$343.4K $22.16/SF
− OpEx
−$103.0K −$6.65/SF
NOI
$240.4K $15.51/SF
Area
Sacramento, CA
Vacancy
5.80%
Lease Rate
$23.52 /SF/Yr
Expense Ratio
30.00%
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%
$4,807,820
Cap Rate 7%
$3,434,157
Cap Rate 9%
$2,671,011
Alternative Uses
Best Use
Retail
$3.43M
$3.00M – $4.01M
NOI $240,391 @ 7.0% cap · market cap 3.34%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.17M
$3.64M – $4.86M
NOI $291,555 @ 7.0% cap · market cap 4.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,809
Businesses Nearby
205k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 38%
Apparel 35%
Groceries 15%
Shops & Services 9%
Marshalls
Apparel
39,812 visits/mo
0.5 miles
Dutch Bros. Coffee
Dining
33,030 visits/mo
0.5 miles
Raley's
Groceries
31,763 visits/mo
0.5 miles
Ross Dress for Less
Apparel
28,155 visits/mo
0.5 miles
Chevron
Shops & Services
12,734 visits/mo
0.5 miles
Market
Vacancy Rate% for Retail in Sacramento, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Retail plaza on Howe Avenue in Sacramento, CA for sale.
Where is this strip mall located?
The property is located at 901-907 Howe Ave Sacramento, CA.
What is the asking price?
The asking price for this property is $7,200,000.
What are key features of this property?
This property features: Located in Sacramento County.; Commercially zoned land.; Signalized intersection location.**
