Office Condo Leased to
For Sale
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7840 Madison Ave Suite 160, Fair Oaks, CA 95628
Office condominium leased to the California Department of Rehabilitation.
Property Size4,644 SF
Price / SF$171.90
Days on Market1285
Property Features for 7840 Madison Ave Suite 160
General Information
Standard status
Active
Size
4,644 SF
Class
B
Property subtype
Office
Zoning
BP
Listing Agency:
Gallelli Real Estate
(916) 789-3337
Listed By:
Robb Osborne · License #CA 01398696
Source:
Crexi
Added: Feb 15, 2023
Changed: Aug 8
Last Checked: Aug 8 at 11:26AM
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 Gallelli Real Estate
Investment Insights
Based on property information with market context.
This is an investment opportunity to purchase an office condominium currently occupied by the California Department of Rehabilitation. The tenant has occupied the property since 2005. The California Department of Rehabilitation provides opportunities for employment and independent living for Californians with disabilities. The property offers a leased investment opportunity with a government-backed agency. The property size is 4,644 square feet.
Key Highlights
- Leased to the California Department of Rehabilitation, a government‑backed agency, providing a secure tenant.
- Long‑term tenant has occupied the property since 2005, indicating stability.
- Stabilized income stream from a reliable tenant.
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
$72,628
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
9.10%
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%
$1,452,560
$1.5M
Cap Rate 7%
$1,037,543
$1.0M
Cap Rate 9%
$806,978
$807.0K
Market Conditions
NOI Build-Up for 4,644 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
$119.3K $25.68/SF
− Vacancy
−$22.4K −$4.83/SF
EGI
$96.8K $20.85/SF
− OpEx
−$24.2K −$5.21/SF
NOI
$72.6K $15.64/SF
Area
Sacramento County, CA
Vacancy
18.80%
Lease Rate
$25.68 /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%
$1,452,560
Cap Rate 7%
$1,037,543
Cap Rate 9%
$806,978
Alternative Uses
Best Use
Office B
$1.04M
$907.9K – $1.21M
NOI $72,628 @ 7.0% cap · market cap 9.10%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.24M
$1.08M – $1.44M
NOI $86,603 @ 7.0% cap · market cap 10.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,243
Businesses Nearby
Explore this area
Business Placement
Demographics for 95628, CA
42,824
Population
17,417
Households
2.5
Avg Household Size
46
Median Age
44%
College-Educated
96%
High-School Grad
12.9 sq mi
ZIP Area
3,320
Density / Sq Mi
$111,582
Median Household Income
$57,050
Median Earnings
$1,857
Median Rent
$615,400
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Office condominium leased to the California Department of Rehabilitation.
Where is this office units located?
The property is located at 7840 Madison Ave Suite 160 Fair Oaks, CA.
What is the asking price?
The asking price for this property is $798,300.
What are key features of this property?
This property features: Leased to the California Department of Rehabilitation, a government‑backed agency, providing a secure tenant.; Long‑term tenant has occupied the property since 2005, indicating stability.; Stabilized income stream from a reliable tenant.
