Second-Generation Restaurant with
For Sale
Contact for pricing
9699 Railroad St, Elk Grove, CA 95624
Second-generation restaurant offered as an NNN property with a built-out interior and a dedicated patio.
Property Size6,500 SF
Price / SF$446.15
Days on Market76
Property Features for 9699 Railroad St
General Information
Standard status
Active
Size
6,500 SF
Property subtype
RETAIL
Lease Type
NNN
Additional Details
Furnished
Yes
Listing Agency:
Turton Commercial Real Estate - Corporate
(916) 573-3300
Listed By:
Scott Kingston · License #01485640
(916) 573-3309
Source:
Moodyscre
Added: Jun 30
Changed: Aug 15
Last Checked: Sep 12 at 8:34AM
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 - Corporate
Investment Insights
Based on property information with market context.
9700 Railroad Street is a ±6,500 SF second-generation restaurant built-out and furnished, with brand-new tenant improvements. The property also includes a ±2,455 SF patio and features historic architecture.
Located at 9699 Railroad St in Elk Grove, CA, the site is adjacent to townhomes and is near Dust Bowl Brewing, supporting an established nearby dining environment.
This NNN restaurant space is delivered ready for operation with existing improvements in place and a dedicated outdoor dining area.
Located at 9699 Railroad St in Elk Grove, CA, the site is adjacent to townhomes and is near Dust Bowl Brewing, supporting an established nearby dining environment.
This NNN restaurant space is delivered ready for operation with existing improvements in place and a dedicated outdoor dining area.
Key Highlights
- ±6,500 SF second‑generation restaurant with a built‑out interior and furnished setup
- NNN restaurant offering with a dedicated patio of ±2,455 SF
- New tenant improvements noted as brand‑new
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
$82,485
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
2.84%
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%
$1,649,700
$1.6M
Cap Rate 7%
$1,178,357
$1.2M
Cap Rate 9%
$916,500
$916.5K
Market Conditions
NOI Build-Up for 6,500 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
$117.0K $18.00/SF
− Vacancy
−$7.0K −$1.08/SF
EGI
$110.0K $16.92/SF
− OpEx
−$27.5K −$4.23/SF
NOI
$82.5K $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%
$1,649,700
Cap Rate 7%
$1,178,357
Cap Rate 9%
$916,500
Alternative Uses
Best Use
Specialty Retail
$1.18M
$1.03M – $1.37M
NOI $82,485 @ 7.0% cap · market cap 2.84%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.62M
$1.42M – $1.90M
NOI $113,723 @ 7.0% cap · market cap 3.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,380
Businesses Nearby
16k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 85%
Dining 15%
Bank of America
Shops & Services
8,381 visits/mo
0.5 miles
Valero Energy
Shops & Services
5,196 visits/mo
0.4 miles
The Sandwich Spot
Dining
2,305 visits/mo
0.3 miles
Demographics for 95624, CA
66,575
Population
20,740
Households
3.2
Avg Household Size
39
Median Age
33%
College-Educated
89%
High-School Grad
45.6 sq mi
ZIP Area
1,460
Density / Sq Mi
$121,269
Median Household Income
$53,303
Median Earnings
$1,960
Median Rent
$603,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Second-generation restaurant offered as an NNN property with a built-out interior and a dedicated patio.
Where is this conventional restaurant located?
The property is located at 9699 Railroad St Elk Grove, CA.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: ±6,500 SF second‑generation restaurant with a built‑out interior and furnished setup; NNN restaurant offering with a dedicated patio of ±2,455 SF; New tenant improvements noted as brand‑new
