Building Details

Building Size 8,000 SF

Construction concrete block

Listing Agency: Crossroad Ventures Group Show Phone

Listed By: Jim Esway · License #00820384

Source: Commercialcafe

Added: Jul 13 Changed: Aug 30 Last Checked: Aug 30 at 1:04PM

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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 Crossroad Ventures Group

Investment Insights

Based on property information with market context.

This warehouse property includes more than 8,000 SF of industrial space on approximately 25 acres. Improvements include a concrete block building with office areas, conditioned warehouse space, and dock doors, along with a separate metal shop building. The site is served by a 2,000-amp electrical supply and includes a land use permit for industrial purposes under General AG zoning.

Located in Elverta, the property provides access to Interstate 5 and Highway 99, with Sacramento International Airport nearby. Established industrial parks and commercial centers are also located in the surrounding area. A separate radio tower generates lease income as an additional property feature.

Key Highlights

• Approximately 25 acres with more than 8,000 SF of industrial space
• Concrete block warehouse with office areas and conditioned storage
• Dock doors support warehouse and distribution operations

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

$121,214

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

3.11%

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%

$2,424,280 $2.4M

Cap Rate 7%

$1,731,629 $1.7M

Cap Rate 9%

$1,346,822 $1.3M

Market Conditions

NOI Build-Up for 8,000 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

$210.2K $26.28/SF

− Vacancy

−$23.8K −$2.97/SF

EGI

$186.5K $23.31/SF

− OpEx

−$65.3K −$8.16/SF

NOI

$121.2K $15.15/SF

Area

Sacramento County, CA

Vacancy

11.30%

Lease Rate

$26.28 /SF/Yr

Expense Ratio

35.00%

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%

$2,424,280

Cap Rate 7%

$1,731,629

Cap Rate 9%

$1,346,822

Alternative Uses

Best Use

Flex RnD

$1.73M

$1.52M – $2.02M (±1% cap)

NOI $121,214 @ 7.0% cap · market cap 3.11%

Second Best

Warehouse

$876.6K

$767.0K – $1.02M (±1% cap)

NOI $61,363 @ 7.0% cap · market cap 1.57%

Theoretical Best

Office A

$2.13M

$1.86M – $2.49M (±1% cap)

NOI $149,186 @ 7.0% cap · market cap 3.83%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Distribution centers

Suggested Use

Top Pick Storage Facility Grocery & Convenience Store Auto Repair Shop Big Box & Wholesale Store Fish Market Pet Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Heavy power

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

19

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 95626, CA

5,766

Population

1,849

Households

3.1

Avg Household Size

44

Median Age

13%

College-Educated

90%

High-School Grad

37.7 sq mi

ZIP Area

153

Density / Sq Mi

$92,708

Median Household Income

$44,873

Median Earnings

$1,428

Median Rent

$467,900

Median Home Value

Market

Vacancy Rate% for Industrial in West region

3.7% 2019

4.3% 2020

2.6% 2021

2.5% 2022

4.8% 2023

6.9% 2024

7.9% 2025

Questions? Ask Rey

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Similar Off Market Nearby

• Sundance Storage - Riego — 3700 W Riego Rd, Elverta, CA 95626

Frequently Asked Questions

What type of property is this?

Warehouse - Industrial warehouse property with conditioned storage, office areas, dock access, a separate metal shop, and heavy power capacity.

Where is this warehouse located?

The property is located at 3387 Riego Rd Elverta, CA.

What is the asking price?

The asking price for this property is $3,900,000.

What are key features of this property?

This property features: Approximately 25 acres with more than 8,000 SF of industrial space; Concrete block warehouse with office areas and conditioned storage; Dock doors support warehouse and distribution operations