Sacramento Office Building For
For Sale
$1,299,000
735 University Avenue, Sacramento, CA 95825
Office building with courtyard and convenient highway access.
Property Size3,478 SF
Price / SF$373.49
Days on Market150
Property Features for 735 University Avenue
General Information
Standard status
Active
Size
3,478 SF
Property subtype
Office
Listing Agency:
(916) 492-6914
Listed By:
Tony Whittaker · License #01780828
(916) 492-6914
Source:
Cbre
Added: Mar 25
Changed: Aug 16
Last Checked: Aug 20 at 6:31AM
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 Tony Whittaker
Investment Insights
Based on property information with market context.
This commercial property, located at 735 University Avenue in Sacramento, California, is available for sale. The property features a well-maintained exterior courtyard. The parking ratio is 4 spaces per 1,000 square feet. A bus stop is located near the property. The building is in close proximity to the Highway 50 on-ramp and major shopping centers. The property size is 3,478 square feet.
Key Highlights
- Beautiful Exterior Courtyard
- High Parking Ratio: 4/1,000
- Close Proximity to Highway 50 on ramp
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
$47,385
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
3.65%
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%
$947,700
$947.7K
Cap Rate 7%
$676,929
$676.9K
Cap Rate 9%
$526,500
$526.5K
Market Conditions
NOI Build-Up for 3,478 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
$75.1K $21.60/SF
− Vacancy
−$11.9K −$3.43/SF
EGI
$63.2K $18.17/SF
− OpEx
−$15.8K −$4.54/SF
NOI
$47.4K $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%
$947,700
Cap Rate 7%
$676,929
Cap Rate 9%
$526,500
Alternative Uses
Best Use
Office B
$676.9K
$592.3K – $789.8K
NOI $47,385 @ 7.0% cap · market cap 3.65%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$934.6K
$817.8K – $1.09M
NOI $65,421 @ 7.0% cap · market cap 5.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,026
Businesses Nearby
Explore this area
Business Placement
Demographics for 95825, CA
36,081
Population
16,803
Households
2.1
Avg Household Size
34
Median Age
33%
College-Educated
87%
High-School Grad
4.7 sq mi
ZIP Area
7,677
Density / Sq Mi
$64,264
Median Household Income
$35,994
Median Earnings
$1,582
Median Rent
$433,500
Median Home Value
Market
Vacancy Rate% for Office in Sacramento, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building with courtyard and convenient highway access.
Where is this office building located?
The property is located at 735 University Avenue Sacramento, CA.
What is the asking price?
The asking price for this property is $1,299,000.
What are key features of this property?
This property features: Beautiful Exterior Courtyard; High Parking Ratio: 4/1,000; Close Proximity to Highway 50 on ramp
