Family Dollar Investment
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2318-2350 S Airport Way, Stockton, CA 95206
Family Dollar NNN lease investment opportunity in Stockton, CA.
Property Size20,300 SF
Price / SF$105.09
Days on Market121
Property Features for 2318-2350 S Airport Way
General Information
Standard status
Active
Size
20,300 SF
Property subtype
RETAIL
Listing Agency:
NAI Northern California
(209) 518-9025
Listed By:
Joshua Ballesteros · License #02010271
(209) 518-9025
Source:
Moodyscre
Added: Apr 28
Changed: Aug 23
Last Checked: Aug 26 at 2:43PM
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 NAI Northern California
Investment Insights
Based on property information with market context.
This property features a Family Dollar store as a tenant, with a corporate guarantee. The monthly rent per square foot is $0.66. The property is priced below replacement cost. The initial lease term was 10 years, with 2 years remaining on the current term and four 5-year options. The rent is scheduled to increase by 5.8% for the first option period, followed by 10% increases in the remaining three option periods. The landlord is responsible for the roof and structure. The property is a corner lot with ample parking and easy access to Interstate 5. It is located in a California Opportunity Zone. While Family Dollar is leasing the entire 20,300 square foot building, they may not be utilizing the full space, presenting a potential future opportunity to renegotiate with Family Dollar and lease a second unit to another tenant.
Key Highlights
- Corporate Guaranteed Tenant (Family Dollar) ensures reliable income.
- Below replacement cost pricing.
- Long‑term lease with option periods and rent increases.
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
$195,032
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
9.14%
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%
$3,900,640
$3.9M
Cap Rate 7%
$2,786,171
$2.8M
Cap Rate 9%
$2,167,022
$2.2M
Market Conditions
NOI Build-Up for 20,300 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
$304.5K $15.00/SF
− Vacancy
−$25.9K −$1.28/SF
EGI
$278.6K $13.73/SF
− OpEx
−$83.6K −$4.12/SF
NOI
$195.0K $9.61/SF
Area
ZIP 95206
Vacancy
8.50%
Lease Rate
$15.00 /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%
$3,900,640
Cap Rate 7%
$2,786,171
Cap Rate 9%
$2,167,022
Alternative Uses
Best Use
Retail
$2.79M
$2.44M – $3.25M
NOI $195,032 @ 7.0% cap · market cap 9.14%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$4.36M
$3.82M – $5.09M
NOI $305,289 @ 7.0% cap · market cap 14.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
175
Businesses Nearby
Explore this area
Business Placement
Demographics for 95206, CA
69,350
Population
18,792
Households
3.7
Avg Household Size
31
Median Age
11%
College-Educated
67%
High-School Grad
133.2 sq mi
ZIP Area
521
Density / Sq Mi
$79,751
Median Household Income
$37,346
Median Earnings
$1,546
Median Rent
$388,500
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Family Dollar NNN lease investment opportunity in Stockton, CA.
Where is this retail space located?
The property is located at 2318-2350 S Airport Way Stockton, CA.
What is the asking price?
The asking price for this property is $2,133,334.
What are key features of this property?
This property features: Corporate Guaranteed Tenant (Family Dollar) ensures reliable income.; Below replacement cost pricing.; Long‑term lease with option periods and rent increases.
