Industrial Building with Fenced
For Sale
Contact for pricing
3850 Happy Lane, Sacramento, CA 95827
M-1-zoned industrial property with three-phase power and a paved, secured yard.
Property Size23,400 SF
Price / SF$210
Days on Market60
Property Features for 3850 Happy Lane
General Information
Standard status
Active
Size
23,400 SF
Class
B
Property subtype
Retail, Industrial
Zoning
M-1
Investment Type
Owner/User
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Additional Details
Three-Phase Power
Yes
Building Details
Year Built
1991
Construction
tilt-up concrete
Listing Agency:
JLL - Sacramento, California
(904) 597-9341
Listed By:
RJ JIMENEZ · License #02248675
Source:
Crexi
Added: Jul 2
Changed: Aug 29
Last Checked: Aug 29 at 6:49PM
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 JLL - Sacramento, California
Investment Insights
Based on property information with market context.
This industrial property offers 23,400 square feet in a concrete tilt-up building constructed in 1991. The improvements include three-phase power and are supported by a large fenced and paved yard, providing a defined outdoor area for industrial operations, storage, or circulation.
The property is located at 3850 Happy Lane in Sacramento, adjacent to the Happy Lane Business Park. It is less than 2 miles south of Highway 50 at the Bradshaw Road exit, providing a documented connection to a regional highway route.
The property is located at 3850 Happy Lane in Sacramento, adjacent to the Happy Lane Business Park. It is less than 2 miles south of Highway 50 at the Bradshaw Road exit, providing a documented connection to a regional highway route.
Key Highlights
- 23,400‑square‑foot industrial building
- Concrete tilt‑up construction completed in 1991
- Three‑phase power service
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
$179,678
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
3.66%
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%
$3,593,560
$3.6M
Cap Rate 7%
$2,566,829
$2.6M
Cap Rate 9%
$1,996,422
$2.0M
Market Conditions
NOI Build-Up for 23,400 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
$224.6K $9.60/SF
− Vacancy
−$13.3K −$0.57/SF
EGI
$211.4K $9.03/SF
− OpEx
−$31.7K −$1.36/SF
NOI
$179.7K $7.68/SF
Area
Sacramento, CA
Vacancy
5.90%
Lease Rate
$9.60 /SF/Yr
Expense Ratio
15.00%
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%
$3,593,560
Cap Rate 7%
$2,566,829
Cap Rate 9%
$1,996,422
Alternative Uses
Best Use
Warehouse
$2.57M
$2.25M – $2.99M
NOI $179,678 @ 7.0% cap · market cap 3.66%
Second Best
Industrial
$2.54M
$2.22M – $2.96M
NOI $177,602 @ 7.0% cap · market cap 3.61%
Theoretical Best
Specialty Retail
$6.29M
$5.50M – $7.34M
NOI $440,154 @ 7.0% cap · market cap 8.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
412
Businesses Nearby
Explore this area
Business Placement
Demographics for 95827, CA
21,566
Population
7,922
Households
2.7
Avg Household Size
36
Median Age
27%
College-Educated
90%
High-School Grad
8.9 sq mi
ZIP Area
2,423
Density / Sq Mi
$82,382
Median Household Income
$42,331
Median Earnings
$1,790
Median Rent
$419,500
Median Home Value
Market
Vacancy Rate% for Industrial in Sacramento, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - M-1-zoned industrial property with three-phase power and a paved, secured yard.
Where is this industrial property located?
The property is located at 3850 Happy Lane Sacramento, CA.
What is the asking price?
The asking price for this property is $4,914,000.
What are key features of this property?
This property features: 23,400‑square‑foot industrial building; Concrete tilt‑up construction completed in 1991; Three‑phase power service
