Absolute NNN CVS Retail
For Sale
Contact for pricing
5040 Laguna Boulevard, Elk Grove, CA 95758
Single-tenant pharmacy investment at a signalized intersection within the Bel Air-anchored Laguna Creek Town Center.
Property Size31,324 SF
Price / SF$239.88
Days on Market76
Property Features for 5040 Laguna Boulevard
General Information
Standard status
Active
Size
31,324 SF
Total Parking Spaces
134
Property subtype
Retail
Zoning
GC
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$394,500
Site & Location
Corner Location
Yes
Anchor Co-Tenants
Bel Air
Traffic Count
120,595 vehicles/day
Highway Access
Yes
Road Access
Yes
Additional Details
Asking Price
$7,514,000
Amenities
MinuteClinic
Building Details
Year Built
1990
Units
134
Tenancy
Single
Listing Agency:
SRS Real Estate Partners Newport Beach
(310) 567-3525
Listed By:
Calvin Short · License #01927216
Source:
Crexi
Added: Jun 17
Changed: Aug 30
Last Checked: Jun 23 at 1:30PM
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 SRS Real Estate Partners Newport Beach
Investment Insights
Based on property information with market context.
This fee-simple retail property is occupied by Longs Drug Stores California, LLC, doing business as CVS, under an absolute NNN lease. The store includes an on-site MinuteClinic walk-in medical clinic, while the lease places CAM, taxes, insurance, and premises maintenance with the tenant. The property was built in 1990 and carries GC zoning.
Located at the signalized intersection of Laguna Boulevard and Franklin Boulevard in Elk Grove, the site benefits from immediate access to Interstate 5. It is part of Laguna Creek Town Center, anchored by a 66,397-square-foot Bel Air grocery store and supported by co-tenants including Starbucks, U.S. Bank, Wells Fargo, and UPS. The surrounding trade area includes a broad concentration of national retailers and established residential, education, healthcare, and employment uses.
The lease has approximately 12.5 years remaining, includes five five-year extension options, and is supported by a corporate guaranty from CVS Health Corporation.
Located at the signalized intersection of Laguna Boulevard and Franklin Boulevard in Elk Grove, the site benefits from immediate access to Interstate 5. It is part of Laguna Creek Town Center, anchored by a 66,397-square-foot Bel Air grocery store and supported by co-tenants including Starbucks, U.S. Bank, Wells Fargo, and UPS. The surrounding trade area includes a broad concentration of national retailers and established residential, education, healthcare, and employment uses.
The lease has approximately 12.5 years remaining, includes five five-year extension options, and is supported by a corporate guaranty from CVS Health Corporation.
Key Highlights
- Absolute NNN lease with tenant responsibility for CAM, taxes, insurance, and premises maintenance
- Approximately 12.5 years remaining with 5 (5‑year) extension options
- 10% increase in the 1st option and 5% increase in the 2nd option
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
$397,502
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
5.29%
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%
$7,950,040
$8.0M
Cap Rate 7%
$5,678,600
$5.7M
Cap Rate 9%
$4,416,689
$4.4M
Market Conditions
NOI Build-Up for 31,324 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
$563.8K $18.00/SF
− Vacancy
−$33.8K −$1.08/SF
EGI
$530.0K $16.92/SF
− OpEx
−$132.5K −$4.23/SF
NOI
$397.5K $12.69/SF
Area
Elk Grove, CA
Vacancy
6.00%
Lease Rate
$18.00 /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%
$7,950,040
Cap Rate 7%
$5,678,600
Cap Rate 9%
$4,416,689
Alternative Uses
Best Use
Specialty Retail
$5.68M
$4.97M – $6.63M
NOI $397,502 @ 7.0% cap · market cap 5.29%
Second Best
Retail
$4.93M
$4.32M – $5.75M
NOI $345,237 @ 7.0% cap · market cap 4.59%
Theoretical Best
Office A
$7.83M
$6.85M – $9.13M
NOI $548,039 @ 7.0% cap · market cap 7.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
120,595 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
536
Businesses Nearby
158k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 47%
Dining 29%
Shops & Services 24%
Electronics 1%
Safeway
Groceries
43,890 visits/mo
0.1 miles
Bel Air
Groceries
30,046 visits/mo
0.1 miles
Jack in the Box
Dining
17,379 visits/mo
0.2 miles
Wells Fargo
Shops & Services
11,793 visits/mo
0.1 miles
Bank of America
Shops & Services
10,874 visits/mo
0.1 miles
Demographics for 95758, CA
64,517
Population
22,755
Households
2.8
Avg Household Size
38
Median Age
37%
College-Educated
92%
High-School Grad
13.6 sq mi
ZIP Area
4,744
Density / Sq Mi
$115,146
Median Household Income
$57,489
Median Earnings
$2,178
Median Rent
$558,800
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Single-tenant pharmacy investment at a signalized intersection within the Bel Air-anchored Laguna Creek Town Center.
Where is this nnn property located?
The property is located at 5040 Laguna Boulevard Elk Grove, CA.
What is the asking price?
The asking price for this property is $7,514,000.
What are key features of this property?
This property features: Absolute NNN lease with tenant responsibility for CAM, taxes, insurance, and premises maintenance; Approximately 12.5 years remaining with 5 (5‑year) extension options; 10% increase in the 1st option and 5% increase in the 2nd option
