Grocery-Anchored Neighborhood Shopping
For Sale
Contact for pricing
1500-1590 West El Camino Avenue, Sacramento, CA 95833
Leasehold interest in a Bel Air-anchored center with extensive parking and long remaining ground lease term.
Property Size89,590 SF
Price / SF$237.19
Days on Market60
Property Features for 1500-1590 West El Camino Avenue
General Information
Standard status
Active
Size
89,590 SF
Total Parking Spaces
465
Property subtype
Retail
Occupancy
97%
Building Details
Year Built
1986
Tenancy
Multi
Listing Agency:
Institutional Property Advisors
Listed By:
Patrick Toomey · License #CA 00881133
Source:
Crexi
Added: Jun 8
Changed: Jul 10
Last Checked: Aug 6 at 12:16PM
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 Institutional Property Advisors
Investment Insights
Based on property information with market context.
Discovery Plaza is an approximately 89,590-square-foot grocery-anchored neighborhood shopping center built in 1986. The property is anchored by Bel Air Market, which has operated continuously at the location since 1980. The center includes 465 surface parking spaces and benefits from substantial street-facing frontage along both West El Camino Avenue and Truxel Road.
The property sits at the northwest corner of West El Camino Avenue and Truxel Road in Sacramento’s Natomas submarket. It features 1,584 feet of frontage along West El Camino Avenue and 1,089 feet of frontage along Truxel Road. The offering is described as a leasehold interest, with the lease running through June 30, 2090. All four renewal options have been exercised, resulting in 64 years of remaining term.
From an ownership standpoint, the lease structure is supported by stated ground rent terms: adjustments occur every five years at 80% of CPI, and there are no fair market value reset provisions. The ground lease also includes a Right Of First Refusal provision giving the owner an opportunity to acquire the fee-simple interest if the ground lessor elects to sell. The property is presented as having maintained effective full occupancy through multiple economic cycles, with in-place NOI of $1,481,004 at 96.7% occupancy and no repositioning required.
The property sits at the northwest corner of West El Camino Avenue and Truxel Road in Sacramento’s Natomas submarket. It features 1,584 feet of frontage along West El Camino Avenue and 1,089 feet of frontage along Truxel Road. The offering is described as a leasehold interest, with the lease running through June 30, 2090. All four renewal options have been exercised, resulting in 64 years of remaining term.
From an ownership standpoint, the lease structure is supported by stated ground rent terms: adjustments occur every five years at 80% of CPI, and there are no fair market value reset provisions. The ground lease also includes a Right Of First Refusal provision giving the owner an opportunity to acquire the fee-simple interest if the ground lessor elects to sell. The property is presented as having maintained effective full occupancy through multiple economic cycles, with in-place NOI of $1,481,004 at 96.7% occupancy and no repositioning required.
Key Highlights
- Bel Air (Raley's credit) neighborhood shopping center anchored by a single grocery tenant
- 89,590 SF shopping center built in 1986 with 465 surface parking spaces
- Frontage of 1,584 ft along West El Camino Ave and 1,089 ft along Truxel Rd at the northwest corner
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
$1,685,188
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
7.93%
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%
$33,703,760
$33.7M
Cap Rate 7%
$24,074,114
$24.1M
Cap Rate 9%
$18,724,311
$18.7M
Market Conditions
NOI Build-Up for 89,590 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
$2.37M $26.40/SF
− Vacancy
−$118.3K −$1.32/SF
EGI
$2.25M $25.08/SF
− OpEx
−$561.7K −$6.27/SF
NOI
$1.69M $18.81/SF
Area
Sacramento, CA
Vacancy
5.00%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
25.00%
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%
$33,703,760
Cap Rate 7%
$24,074,114
Cap Rate 9%
$18,724,311
Alternative Uses
Best Use
Specialty Retail
$24.07M
$21.06M – $28.09M
NOI $1,685,188 @ 7.0% cap · market cap 7.93%
Second Best
Retail
$19.85M
$17.37M – $23.16M
NOI $1,389,459 @ 7.0% cap · market cap 6.54%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
96.7%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
443
Businesses Nearby
115k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 39%
Groceries 37%
Dining 21%
Electronics 1%
Bel Air
Groceries
30,743 visits/mo
0.1 miles
Wells Fargo
Shops & Services
12,554 visits/mo
0.1 miles
Grocery Outlet Bargain Market
Groceries
11,469 visits/mo
0.3 miles
Shell
Shops & Services
11,323 visits/mo
0.1 miles
Bank of America
Shops & Services
10,675 visits/mo
0.1 miles
Demographics for 95833, CA
40,195
Population
16,751
Households
2.4
Avg Household Size
34
Median Age
32%
College-Educated
89%
High-School Grad
8.1 sq mi
ZIP Area
4,962
Density / Sq Mi
$87,016
Median Household Income
$50,997
Median Earnings
$1,835
Median Rent
$439,700
Median Home Value
Market
Vacancy Rate% for Retail in Sacramento, CA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Stone Creek Shopping Center — 1583-1589 W El Camino Ave, Sacramento, CA 95833
- Park Plaza — W El Camino Ave, Sacramento, CA 95833
- Discovery Plaza — 1500 W El Camino Ave, Sacramento, CA 95833
- Coinstar Kiosk | Bitcoin ATM — Bel Air, 1540 W El Camino Ave, Sacramento, CA 95833
- Coin Cloud Bitcoin ATM — 1620 W El Camino Ave #155, Sacramento, CA 95833
Frequently Asked Questions
What type of property is this?
Shopping center - Leasehold interest in a Bel Air-anchored center with extensive parking and long remaining ground lease term.
Where is this shopping center located?
The property is located at 1500-1590 West El Camino Avenue Sacramento, CA.
What is the asking price?
The asking price for this property is $21,250,000.
What are key features of this property?
This property features: Bel Air (Raley's credit) neighborhood shopping center anchored by a single grocery tenant; 89,590 SF shopping center built in 1986 with 465 surface parking spaces; Frontage of 1,584 ft along West El Camino Ave and 1,089 ft along Truxel Rd at the northwest corner
