Midtown Sacramento Mixed-Use
For Sale
Contact for pricing
2620 T St, Sacramento, CA 95816
Six-unit mixed-use property in Sacramento's desirable Midtown submarket.
Property Size5,463 SF
Lot Size0.15 Acres
Price / SF$311.18
Days on Market172
Property Features for 2620 T St
General Information
Standard status
Active
Size
5,463 SF
Lot size
0.15 Acres
Property subtype
Mixed Use, Multifamily
Zoning
R-3A-SPD
Listing Agency:
eXp Commercial of California Inc.
(916) 937-0012
Listed By:
Luis Mejia · License #CA 02011269
Source:
Crexi
Added: Feb 21
Changed: Aug 8
Last Checked: Jul 19 at 7:30AM
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 eXp Commercial of California Inc.
Investment Insights
Based on property information with market context.
Located in Sacramento’s Midtown submarket, this mixed-use investment property at 2620 T Street features six units. Constructed originally in 1890 and renovated extensively in 2019, with two newly constructed rear townhomes completed in 2020, the property combines historic character and modern design. The asset includes five residential units and one ground-floor retail suite, providing a diversified income stream. The retail tenant has 3% annual rent increases each January 1. The primary building underwent a comprehensive renovation in 2019, including remodeled kitchens and bathrooms, updated flooring, replacement of all appliances, new HVAC systems, and upgraded electrical panels. All residential units feature in-unit washer and dryer sets replaced in 2019. The building received a fresh exterior paint job within the last three years. The roof is approximately 10 years old. The two rear 2-bedroom/2-bathroom townhomes completed in 2020 include a private single-car garage. Situated on approximately 0.15 acres with 5,463 rentable square feet, the property combines renovated historic frontage with newly constructed residential units and stable retail income. The property is located in Sacramento’s Midtown/Downtown corridor, near Downtown Sacramento, the California State Capitol, UC Davis Medical Center, and Sutter Medical Center. The surrounding neighborhood offers a diverse mix of restaurants, cafés, retail boutiques, neighborhood parks, and entertainment venues. The property offers regional connectivity via Highway 50, Interstate 80, and Interstate 5.
Key Highlights
- Prime Midtown Location in Sacramento, close to major employers
- Diversified Income Stream with built‑in rent growth
- Extensive Renovation in 2019, including new appliances and in‑unit washer/dryers
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
$85,813
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
5.05%
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%
$1,716,260
$1.7M
Cap Rate 7%
$1,225,900
$1.2M
Cap Rate 9%
$953,478
$953.5K
Market Conditions
NOI Build-Up for 5,463 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
$163.9K $30.00/SF
− Vacancy
−$7.9K −$1.44/SF
EGI
$156.0K $28.56/SF
− OpEx
−$70.2K −$12.85/SF
NOI
$85.8K $15.71/SF
Area
Sacramento, CA
Vacancy
4.80%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
45.00%
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%
$1,716,260
Cap Rate 7%
$1,225,900
Cap Rate 9%
$953,478
Alternative Uses
Best Use
Apartment 5plus
$1.23M
$1.07M – $1.43M
NOI $85,813 @ 7.0% cap · market cap 5.05%
Second Best
Retail
$1.21M
$1.06M – $1.41M
NOI $84,726 @ 7.0% cap · market cap 4.98%
Theoretical Best
Specialty Retail
$1.47M
$1.28M – $1.71M
NOI $102,759 @ 7.0% cap · market cap 6.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,203
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
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Six-unit mixed-use property in Sacramento's desirable Midtown submarket.
Where is this mixed-use property located?
The property is located at 2620 T St Sacramento, CA.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: Prime Midtown Location in Sacramento, close to major employers; Diversified Income Stream with built‑in rent growth; Extensive Renovation in 2019, including new appliances and in‑unit washer/dryers
