Class A Office
For Sale
Contact for pricing
3636-3640 American River Drive, Sacramento, CA 95864
Established suburban office complex with landscaped grounds, business park zoning, and direct access to U.S. Highway 50.
Property Size127,235 SF
Price / SF$206.31
Days on Market129
Property Features for 3636-3640 American River Drive
General Information
Standard status
Active
Size
127,235 SF
Class
A
Total Parking Spaces
477
Property subtype
Office
Zoning
BP (Business Park)
Occupancy
94%
Lease Type
Gross
Investment Type
Stabilized
Net Operating Income
$1,893,404
Additional Details
Highway Access
Yes
Amenities
landscaped grounds
Building Details
Year Built
1976
Year Renovated
1999
Buildings
1
Stories
2
Units
477
Tenancy
Multi
Listing Agency:
Newmark - Sacramento
Listed By:
Ali Nadimi · License #CA01723313
(916) 213-9315
Source:
Crexi
Added: Apr 27
Changed: Sep 2
Last Checked: Sep 1 at 5:56AM
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 Newmark - Sacramento
Investment Insights
Based on property information with market context.
This 127,235-square-foot office complex was built in 1976 and is 94% leased. The property is identified as Class A and includes landscaped grounds within a suburban setting. BP (Business Park) zoning supports its office-oriented positioning.
Access to U.S. Highway 50 provides a direct connection to the area’s freeway and interstate network. The complex is approximately 15 minutes from Sacramento’s Central Business District, the State Capitol, and the State and Federal Courts. Restaurants, shopping, service retail, and residential areas are also located within a short drive, adding convenience for occupants and visitors.
Access to U.S. Highway 50 provides a direct connection to the area’s freeway and interstate network. The complex is approximately 15 minutes from Sacramento’s Central Business District, the State Capitol, and the State and Federal Courts. Restaurants, shopping, service retail, and residential areas are also located within a short drive, adding convenience for occupants and visitors.
Key Highlights
- 127,235 SF office complex built in 1976
- 94% leased with long‑term tenants
- Class A office property in a suburban setting
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
$1,733,475
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
6.60%
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%
$34,669,500
$34.7M
Cap Rate 7%
$24,763,929
$24.8M
Cap Rate 9%
$19,260,833
$19.3M
Market Conditions
NOI Build-Up for 127,235 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
$2.75M $21.60/SF
− Vacancy
−$437.0K −$3.43/SF
EGI
$2.31M $18.17/SF
− OpEx
−$577.8K −$4.54/SF
NOI
$1.73M $13.62/SF
Area
Sacramento, CA
Vacancy
15.90%
Lease Rate
$21.60 /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%
$34,669,500
Cap Rate 7%
$24,763,929
Cap Rate 9%
$19,260,833
Alternative Uses
Best Use
Office B
$24.76M
$21.67M – $28.89M
NOI $1,733,475 @ 7.0% cap · market cap 6.60%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$34.19M
$29.92M – $39.89M
NOI $2,393,290 @ 7.0% cap · market cap 9.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
765
Businesses Nearby
Explore this area
Business Placement
Demographics for 95864, CA
24,249
Population
10,286
Households
2.4
Avg Household Size
44
Median Age
58%
College-Educated
95%
High-School Grad
6.3 sq mi
ZIP Area
3,849
Density / Sq Mi
$129,083
Median Household Income
$63,220
Median Earnings
$1,863
Median Rent
$770,200
Median Home Value
Market
Vacancy Rate% for Office in Sacramento, CA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Established suburban office complex with landscaped grounds, business park zoning, and direct access to U.S. Highway 50.
Where is this office building located?
The property is located at 3636-3640 American River Drive Sacramento, CA.
What is the asking price?
The asking price for this property is $26,250,000.
What are key features of this property?
This property features: 127,235 SF office complex built in 1976; 94% leased with long‑term tenants; Class A office property in a suburban setting
