Midtown Mixed-Use Investment
For Sale
Contact for pricing
2012 K St, Sacramento, CA 95814
Mixed-use property in Midtown's vibrant retail and entertainment corridor.
Property Size12,800 SF
Price / SF$257.81
Days on Market856
Property Features for 2012 K St
General Information
Standard status
Active
Size
12,800 SF
Property subtype
Retail, Office, Mixed Use
Zoning
C-2 SPD
Lease Type
NNN
Investment Type
Net Lease
Building Details
Year Built
1947
Stories
2
Listing Agency:
Turton Commercial Real Estate
Listed By:
Scott Kingston · License #CA
(916) 573-3309
Source:
Crexi
Added: May 2, 2024
Changed: Aug 8
Last Checked: Aug 30 at 8:15PM
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 Turton Commercial Real Estate
Investment Insights
Based on property information with market context.
Located in the heart of Midtown Sacramento's retail and entertainment corridor, this mixed-use property offers approximately 5,435 square feet of first-floor retail space, including two recently leased suites and one 4,162-square-foot second-generation retail suite. Additionally, there is a 1,273-square-foot warehouse space with a roll-up door providing access to the K Street/L Street alley. The retail spaces benefit from exposure to Midtown's Saturday farmers market. The second story features approximately 6,800 square feet of creative office space, accessible directly from K Street via an exclusive lobby and elevator. This office space includes hardwood floors, outdoor patios, and skylights that provide natural light. This property is located in Midtown, known for its blend of local, national, and regional retailers, eclectic mix of high-end demographic occupations, unique older buildings, and mature trees. The Lavender Heights neighborhood, one block away, features restaurants, art galleries, coffee houses, and boutiques. The property is within walking distance of amenities such as Temple Coffee, N Street Café, Jack's Urban Eats, and the MARRS Building.
Key Highlights
- Prime Midtown location in a vibrant retail and entertainment corridor
- Mixed‑use property with first‑floor retail and second‑story creative office space
- Opportunity for owner‑user or investor
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
$198,516
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
6.02%
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%
$3,970,320
$4.0M
Cap Rate 7%
$2,835,943
$2.8M
Cap Rate 9%
$2,205,733
$2.2M
Market Conditions
NOI Build-Up for 12,800 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
$301.1K $23.52/SF
− Vacancy
−$17.5K −$1.36/SF
EGI
$283.6K $22.16/SF
− OpEx
−$85.1K −$6.65/SF
NOI
$198.5K $15.51/SF
Area
Sacramento, CA
Vacancy
5.80%
Lease Rate
$23.52 /SF/Yr
Expense Ratio
30.00%
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%
$3,970,320
Cap Rate 7%
$2,835,943
Cap Rate 9%
$2,205,733
Alternative Uses
Best Use
Retail
$2.84M
$2.48M – $3.31M
NOI $198,516 @ 7.0% cap · market cap 6.02%
Second Best
Mixed Use
$2.52M
$2.21M – $2.94M
NOI $176,640 @ 7.0% cap · market cap 5.35%
Theoretical Best
Specialty Retail
$3.44M
$3.01M – $4.01M
NOI $240,768 @ 7.0% cap · market cap 7.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,754
Businesses Nearby
Explore this area
Business Placement
Demographics for 95814, CA
12,208
Population
7,972
Households
1.5
Avg Household Size
38
Median Age
40%
College-Educated
90%
High-School Grad
1.4 sq mi
ZIP Area
8,720
Density / Sq Mi
$46,637
Median Household Income
$57,500
Median Earnings
$1,226
Median Rent
$621,400
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?
Mixed-use property - Mixed-use property in Midtown's vibrant retail and entertainment corridor.
Where is this mixed-use property located?
The property is located at 2012 K St Sacramento, CA.
What is the asking price?
The asking price for this property is $3,300,000.
What are key features of this property?
This property features: Prime Midtown location in a vibrant retail and entertainment corridor; Mixed‑use property with first‑floor retail and second‑story creative office space; Opportunity for owner‑user or investor
