Single-Story Flex
For Sale
$3,490,000
2204 Kausen Drive Elk, Elk Grove, CA 95758
Two tenants occupy the property under NNN agreements within a professional business-center setting.
Property Size10,844 SF
Lot Size0.82 Acres
Price / SF$321.84
Days on Market193
Property Features for 2204 Kausen Drive Elk
General Information
Standard status
Active
Size
10,844 SF
Class
A
Lot size
0.82 Acres
Property subtype
Multi Tenant Office
Occupancy
100%
Additional Details
Highway Access
Yes
Building Details
Building Size
10,844 SF
Buildings
1
Stories
1
Tenancy
Multi
Owner Occupied
No
Listing Agency:
Capital Rivers Commercial
(510) 495-5975
Listed By:
Ryan Orn · License ##02070096
(510) 495-5975
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 9:47AM
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 Capital Rivers Commercial
Investment Insights
Based on property information with market context.
Located within Laguna West Business Center, this single-story flex property contains approximately 10,844 square feet on approximately 0.82 acres. The building is fully leased to two tenants under NNN agreements: Reach Adult Development and Gracie Jiu-Jitsu. Its configuration combines office and flex functionality in a professional commercial setting.
The property is accessible from I-5 via the Laguna Boulevard exit, with restaurants, retail, and other business amenities nearby. One current tenant is open to a lease buyout or cancellation, creating the option for an owner-user to occupy up to half of the building while the remaining space continues under lease. Owner financing is also available.
The property is accessible from I-5 via the Laguna Boulevard exit, with restaurants, retail, and other business amenities nearby. One current tenant is open to a lease buyout or cancellation, creating the option for an owner-user to occupy up to half of the building while the remaining space continues under lease. Owner financing is also available.
Key Highlights
- Approximately 10,844‑square‑foot building on approximately 0.82 acres
- Two tenants in place under NNN agreements
- Fully leased to Reach Adult Development and Gracie Jiu‑Jitsu
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
$150,942
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%
$3,018,840
$3.0M
Cap Rate 7%
$2,156,314
$2.2M
Cap Rate 9%
$1,677,133
$1.7M
Market Conditions
NOI Build-Up for 10,844 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
$240.7K $22.20/SF
− Vacancy
−$39.5K −$3.64/SF
EGI
$201.3K $18.56/SF
− OpEx
−$50.3K −$4.64/SF
NOI
$150.9K $13.92/SF
Area
Elk Grove, CA
Vacancy
16.40%
Lease Rate
$22.20 /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%
$3,018,840
Cap Rate 7%
$2,156,314
Cap Rate 9%
$1,677,133
Alternative Uses
Best Use
Office B
$2.16M
$1.89M – $2.52M
NOI $150,942 @ 7.0% cap · market cap 4.32%
Second Best
Flex RnD
$1.46M
$1.28M – $1.70M
NOI $102,261 @ 7.0% cap · market cap 2.93%
Theoretical Best
Office A
$2.71M
$2.37M – $3.16M
NOI $189,725 @ 7.0% cap · market cap 5.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
236
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95758, CA
64,517
Population
22,755
Households
2.8
Avg Household Size
38
Median Age
37%
College-Educated
92%
High-School Grad
13.6 sq mi
ZIP Area
4,744
Density / Sq Mi
$115,146
Median Household Income
$57,489
Median Earnings
$2,178
Median Rent
$558,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Two tenants occupy the property under NNN agreements within a professional business-center setting.
Where is this flex space located?
The property is located at 2204 Kausen Drive Elk Elk Grove, CA.
What is the asking price?
The asking price for this property is $3,490,000.
What are key features of this property?
This property features: Approximately 10,844‑square‑foot building on approximately 0.82 acres; Two tenants in place under NNN agreements; Fully leased to Reach Adult Development and Gracie Jiu‑Jitsu
