Two-Story Restaurant and Event
For Sale
Contact for pricing
2523 Broadway, Sacramento, CA 95818
Two separate kitchens, an elevator, dual hood systems, on-site parking, and outdoor patio options support varied operations.
Property Size7,418 SF
Price / SF$269.48
Days on Market236
Property Features for 2523 Broadway
General Information
Standard status
Active
Size
7,418 SF
Property subtype
RETAIL
Listing Agency:
Colliers | Sacramento
(916) 821-9866
Listed By:
David Herrera · License #01484908
(916) 821-9866
Source:
Moodyscre
Added: Jan 6
Changed: Aug 30
Last Checked: Aug 30 at 4:53AM
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 Colliers | Sacramento
Investment Insights
Based on property information with market context.
The 7,418-square-foot property at 2523 Broadway is configured as a second-generation restaurant and event hall across two floors. Both levels include hood systems, while two full, separate kitchens support independent food-service operations. An elevator provides access to the second floor, and the roof has been recently updated.
On-site parking is included, with outdoor patio options adding flexibility for the restaurant and event-hall uses. The first-floor hood is approximately 20 feet, and the second-floor hood is approximately 32 feet.
On-site parking is included, with outdoor patio options adding flexibility for the restaurant and event-hall uses. The first-floor hood is approximately 20 feet, and the second-floor hood is approximately 32 feet.
Key Highlights
- 7,418 square feet configured for restaurant and event‑hall use
- Two full, separate kitchens
- Hood systems on both levels: approximately 20 feet on the first floor and 32 feet on the second
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
$139,533
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
6.98%
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%
$2,790,660
$2.8M
Cap Rate 7%
$1,993,329
$2.0M
Cap Rate 9%
$1,550,367
$1.6M
Market Conditions
NOI Build-Up for 7,418 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
$195.8K $26.40/SF
− Vacancy
−$9.8K −$1.32/SF
EGI
$186.0K $25.08/SF
− OpEx
−$46.5K −$6.27/SF
NOI
$139.5K $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%
$2,790,660
Cap Rate 7%
$1,993,329
Cap Rate 9%
$1,550,367
Alternative Uses
Best Use
Specialty Retail
$1.99M
$1.74M – $2.33M
NOI $139,533 @ 7.0% cap · market cap 6.98%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,017
Businesses Nearby
113k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 56%
Shops & Services 31%
Groceries 13%
McDonald's
Dining
29,482 visits/mo
0.2 miles
Smart & Final
Groceries
14,954 visits/mo
0.2 miles
Taco Bell
Dining
13,554 visits/mo
0.1 miles
ARCO
Shops & Services
9,514 visits/mo
0.4 miles
Bonfare Market
Shops & Services
9,218 visits/mo
0.4 miles
Demographics for 95818, CA
22,375
Population
11,301
Households
2
Avg Household Size
39
Median Age
62%
College-Educated
93%
High-School Grad
3.9 sq mi
ZIP Area
5,737
Density / Sq Mi
$120,509
Median Household Income
$72,803
Median Earnings
$1,650
Median Rent
$768,700
Median Home Value
Market
Vacancy Rate% for Retail in Sacramento, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Two separate kitchens, an elevator, dual hood systems, on-site parking, and outdoor patio options support varied operations.
Where is this conventional restaurant located?
The property is located at 2523 Broadway Sacramento, CA.
What is the asking price?
The asking price for this property is $1,999,000.
What are key features of this property?
This property features: 7,418 square feet configured for restaurant and event‑hall use; Two full, separate kitchens; Hood systems on both levels: approximately 20 feet on the first floor and 32 feet on the second
