Triple-Net Office
For Sale
$4,300,000
2114 K Street, Sacramento, CA 95816
Three connected office buildings and a separate parking parcel are leased under a triple-net structure through July 31, 2031.
Property Size9,600 SF
Days on Market8
Property Features for 2114 K Street
General Information
Standard status
Active
Size
9,600 SF
Property subtype
Office
Building Details
Building Size
9,600 SF
Year Built
1970
Listing Agency:
Ken Turton, Broker
Listed By:
Jon Lang · License #01934934
(916) 710-0753
Source:
Teamnavigate
Added: Sep 17
Changed: Sep 19
Last Checked: Sep 24 at 6:31PM
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 Ken Turton, Broker
Investment Insights
Based on property information with market context.
This three-property portfolio includes contiguous single-story office buildings at 2114 and 2116 K Street, connected by an interior opening and totaling 9,600 rentable square feet. Across the alley, 2119 L Street adds a separate 6,400-square-foot parking lot with 20 stalls, while 10 additional stalls are located behind 2116 K Street. The office component and parking facilities are 100% leased to Wilcoxen Callaham, LLP, a Sacramento personal injury and malpractice law firm that has occupied the property for over 47 years.
The lease is structured on a traditional triple-net basis, with the tenant responsible for operating expenses and nearly all maintenance and repairs. The current term runs through July 31, 2031, and includes one three-year extension option with 3% annual rent increases. Built in 1970, the property is located in Midtown Sacramento near the MARRS Building, Midtown Farmer's Market, and Temple Coffee at 22K.
The lease is structured on a traditional triple-net basis, with the tenant responsible for operating expenses and nearly all maintenance and repairs. The current term runs through July 31, 2031, and includes one three-year extension option with 3% annual rent increases. Built in 1970, the property is located in Midtown Sacramento near the MARRS Building, Midtown Farmer's Market, and Temple Coffee at 22K.
Key Highlights
- 9,600 rentable SF across connected single‑story office buildings at 2114 and 2116 K Street
- Separate 6,400‑square‑foot parking lot at 2119 L Street with 20 parking stalls
- 10 additional parking stalls immediately behind 2116 K Street
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
$130,792
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
3.04%
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%
$2,615,840
$2.6M
Cap Rate 7%
$1,868,457
$1.9M
Cap Rate 9%
$1,453,244
$1.5M
Market Conditions
NOI Build-Up for 9,600 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
$207.4K $21.60/SF
− Vacancy
−$33.0K −$3.43/SF
EGI
$174.4K $18.17/SF
− OpEx
−$43.6K −$4.54/SF
NOI
$130.8K $13.62/SF
Area
Sacramento, CA
Vacancy
15.90%
Lease Rate
$21.60 /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%
$2,615,840
Cap Rate 7%
$1,868,457
Cap Rate 9%
$1,453,244
Alternative Uses
Best Use
Office B
$1.87M
$1.63M – $2.18M
NOI $130,792 @ 7.0% cap · market cap 3.04%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.58M
$2.26M – $3.01M
NOI $180,576 @ 7.0% cap · market cap 4.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
6,754
Businesses Nearby
Explore this area
Business Placement
Demographics for 95816, CA
18,606
Population
11,553
Households
1.6
Avg Household Size
36
Median Age
65%
College-Educated
98%
High-School Grad
2.7 sq mi
ZIP Area
6,891
Density / Sq Mi
$90,521
Median Household Income
$61,407
Median Earnings
$1,647
Median Rent
$789,700
Median Home Value
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Market
Vacancy Rate% for Office in Sacramento, CA
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Frequently Asked Questions
What type of property is this?
Office building - Three connected office buildings and a separate parking parcel are leased under a triple-net structure through July 31, 2031.
Where is this office building located?
The property is located at 2114 K Street Sacramento, CA.
What is the asking price?
The asking price for this property is $4,300,000.
What are key features of this property?
This property features: 9,600 rentable SF across connected single‑story office buildings at 2114 and 2116 K Street; Separate 6,400‑square‑foot parking lot at 2119 L Street with 20 parking stalls; 10 additional parking stalls immediately behind 2116 K Street
