2300 N STREET

OWNER-USER OR INVESTMENT OPPORTUNITY

2300N STREET

2409 L STREET, STE 200 SACRAMENTO, CA 95816

916.573.3300 TURTONCOM.COM

© 2020 The information contained in the Offering memorandum is confidential and is not to be used for any other purpose or made available to other persons without the express written consent of Turton Commercial Real Estate (“TCRE”), Ken Turton or the owner. The material contained herein is based upon information supplied by owner in coordination with information provided by TCRE from sources it deems reasonably reliable. Summaries of documents are not intended to be comprehensive or all-inclusive but rather a general outline of the provisions contained herein and subject to more diligent investigation on the part of the prospective purchaser. No warranty, expressed or implied, is made by owner, TCRE or any other respec-tive affiliates, as to the accuracy or completeness of the information contained herein or any other written or aral communication provided to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communication. Without limiting the general nature of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business affairs, specific finances or specific condition of the Property since the date of preparation of the information. Prospective purchaser shall make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, inspection and review of the Property, including but not limited to engineering and environmental inspec-tions, to determine the condition of the Property and the existence of any potential hazardous material located at the site.

JON LANGVICE PRESIDENT - LIC. 01934934916.573.3302JONL ANG@TURTONCOM.COM

JOHN MUDGETTVICE PRESIDENT - LIC. 01765754916.573.3306JOHNMUDGET T@TURTONCOM.COM

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2300 N BOASTS AN INVESTMENT, OWNER-OCCUPANT, OR RESIDENTIAL CONVERSION OPPORTUNITY.

Section One: The Opportunity

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THE OPPORTUNITY

2 3 0 0 N S T R E E T , S A C R A M E N T O , C A 9 5 8 1 6

2300 N Street (the “Property”) is 3,600 square

foot, two-story office building situated on a

6,400-square foot parcel of land in Midtown. The

Property is 100% leased to three office tenants

with flexible lease terms. All three office tenants are

on “modified gross” lease structures whereby the

tenants pay SMUD, PG&E, and janitorial in addition

to the base rent. The Property is an attractive ful-

ly leased passive investment, but the second floor

(1,800-square feet) could also be made available

for an owner-user. Further, the property is an in-

teresting residential conversion opportunity as it

was originally built as a four-plex and still boasts

residential finishes and layout. The Property, zoned

R3A, would allow a multi-family conversion by right;

however, the Property is currently grandfathered into

an office use. Lastly, the Property features fourteen

(14) on-site parking stalls, a valuable amenity in the

Midtown submarket. The Property is being offered at

$1,150,000 which equates to a 4.75% capitalization

rate on existing income.

4.75%3,600 $1,150,000PRICESF BUILDING CAP RATE

R3AZONING

14ON-SITE PARKING STALLS

2300N STREET

Address: 2300 N St, Sacramento, CA 95816

Building Size: 3,600 SF

Ground Floor Unit #1: 900 SF

Ground Floor Unit #2: 900 SF

Upstairs Unit: 1,800 SF

Parcel Size: 6,400 SF

Price: $1,150,000

Net Operating Income: $54,408

Cap Rate: 4.75%

Occupancy: 100%

Year Built: 1925

Year Renovated: Approx. 1980

Zoning: R3A

On-site Parking: 14 stalls (7 tandem stalls)

Construction Type: Masonry

PROPERTY DETAILS

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Section One: The Opportunity 2300N STREET

The Property is an attractive investment for anar-

ray of buyers, from passive and value-add investors

to owner-users:

Situated in the heart of Midtown, the Property

is a prime investment opportunity for the passive

or tax-deferred exchange investor. The building is

currently 100% leased with long-term tenants who

The Property is a great opportunity for an own-

er-user. By the end of 2020, an owner-user could

occupy the entire 1,800-square foot upstairs office

have all expressed a desire to stay in the building

for the foreseeable future. Over the last decade,

the building has experienced less than 6 months of

vacancy and downtime between all three units. The

demand for small, quality office space in Midtown

has never been higher and this building can accom-

modate an array of office uses. Further, all three

space. Both ground floor tenants are committed

to the Property through 2021, providing a monthly

income of approximately $3,250 to offset acquisi-

office units are move-in ready and would require

negligible stabilization costs to re-lease should a

tenant vacate. The building currently produces a

gross annual rent of $81,600 with a net operating

income of $54,408. Based upon a purchase price

of $1,150,000 the first-year capitalization rate is

approximately 4.75%.

tion and loan costs. Currently, there are 8 on-site

parking stalls allocated to the upstairs unit which

could be used exclusively by an owner-user.

INVESTMENT

OWNER-USER

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Section One: The Opportunity 2300N STREET

Section One: The Opportunity

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Nearby Mural by Nate Frizzel

2300N STREET

RESIDENTIAL CONVERSION

PARKING

The Property lends itself nicely to a residential

conversion. Originally built as a four-plex, the

Property was transitioned to traditional office

space in the mid-1980s. The two upstairs units

were combined to create a single, 1,800-square

foot office suite; the two ground floor units are

The Property features fourteen (14) on-site park-

ing stalls, comprised of seven (7) tandem stalls. Ten

(10) of the on-site stalls are currently allocated to

the existing tenants for free; however, market rate

approximately 900-square feet. The units still

feature some of the original residential finishes

such as coved ceilings, crown molding, multi-

ple fireplaces, built-in storage, and hardwood

floors. With short-term leases, a buyer could

convert the building back to four residential

for tandem stalls in Midtown is approximately $100

per stall ($50 per car). Therefore, over time, a buyer

could begin to lease the stalls to the existing tenants

or neighboring residential tenants, generating an

units when the existing tenants vacate the build-

ing. The building is zoned R3A, which permits

such a conversion by right. Average residential

rents in Midtown are $3+ per square foot plus

utilities and reimbursement.

additional total sum of $700 per month or $8,400

per year. In addition to the on-site parking, the ten-

ants have access to ample free street parking within

a block of the Property.

Section Two: Building Location

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2300N STREET

The Subject Property is located within a short walk

from many of Midtown’s most desirable amenities,

including Temple Coffee, N Street Café, Jack’s Urban

Eats, Chipotle, Waterboy, Zocalo, Mulvaney’s, Der

Bier Garten, Cantina Alley, LEXI boutique, the Burger

Patch, Art Beast, Flamingo House, the MARRS Build-

ing (home to LowBrau, Block Butcher Bar, Nekter Juice

Bar, Pizzeria Urbano, Azul taqueria & tequila bar, Sleek

Wax, Kin Thai restaurant, and Peet’s Coffee), Faces,

The Depot, Mango’s and much more. Furthermore, the

Subject Property can take advantage of a handful of

service-based amenities within a few blocks including

Golden 1 Credit Union, UPS Store, Floppy’s Printing,

Judi’s cleaners, and some of the best hair and nail

salons in the region.

Midtown Sacramento is the perfect blend of carefully

curated local, national, and regional retailers with an

eclectic mix of high-end demographic occupations

embedded in a landscape of unique older buildings

paired with mature trees. Business owners, residents

and investors near and far have flocked to the center

of Sacramento’s art, music, and cultural scene to cash

in on the fruitful submarket. Many people consider

Midtown to be the most desirable area in the city of

Sacramento, with easy freeway access and adjacent

to Downtown, Old Sacramento, West Sacramento and

East Sacramento.

One block away the opportunity, the Lavender Heights

neighborhood has emerged as one of the submarket’s

hottest micro-markets. The epicenter of this exciting

district is the MARRS building. The neighborhood

recently welcomed rainbow cross walks to commem-

orate the cultural inclusion and progressive thinking

of the neighborhood. The neighborhood features

some of Sacramento’s most successful restaurants

and nightlife venues and has over thirty unique mix

of local restaurants, art galleries, coffee houses and

boutiques. The Lavender Heights district has high

foot traffic both day and night and is a local hot spot

for those who love to eat and drink and enjoy many

of Midtown’s most popular establishments. While it

is an excellent starting location for the popular Sec-

ond Saturday festivities, this area is home to many

additional noteworthy events such as the Midtown

Love, The Midtown Farmers’ Market, Midtown Mini,

THIS Sacramento block parties, PARK(ing) Day, and

so much more!

BUILDING LOCATIONIn the heart of Midtown Sacramento!

ALKALI FLAT

P

19th

N

Eviva

Sac Comm. Theatre

CrepevilleBuckhorn Grill

Broderick RoadhouseZocalo

58 DegreesFieldwork Brewing

Pushkin’sBig Stump Brewing

Preethi Indian

Mikuni SushiLucca

PieologyBurgers & Brew

PF ChangsBento BoxStation 16

Petra GreekSqueezeburger

2300 N Street

The Press Dev. 21st

KuprosThe Cabin

LowBrauBlock Butcher BarPizzeria Urbano

Azul Mexican

Pieces PizzaBombay Bar & Grill

Jack’s Urban EatsWaterboy

JalapenosZelda’s

I love TeriyakiN Street Cafe

Old Tavern

Truitt BARK Park

Fremont Park

Capitol Park

Q19 Dev.

20 PQR Dev.

20 PQR Dev.

Conv. Center Dev.Section Two: Building Location

1 2

MARRS2300N STREET

Freemont Market

Temple CoffeeCostanza’s

The Morning ForkGolden 1 Credit Union

The Burger PatchFlaming House

Golden BearTres Hermanas

Burgers and BrewGoldfields

Streets of LondonBevmo

The Press CLubAdamo’s

Tea Cup HouseSubway

The Zebra ClubSun & Soil Juice Co

Sac Brew BikeElliot Fouts Gallery

Magpie CafeOrchid Tahi

Temple CoffeeKarma Bru

Uncle Vito’sUniversity of BeerJim’s Good Food

Fit EatsNaked Lounge

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The Property also benefits from proximity to several popular restaurants and bars, with easy access to every corner of the growing city.

POPULAR RESTAURANTS NEAR 2300 N STREET (NOT ALL ARE MENTIONED HERE):

58 Degrees & Holding Co.

Ace of Spades

Aioli Bodega Espanola

Amaro Italian Bistro & Bar

Art of Toys

Azul Mexican

Badlands

Bar West

Bento Box

BevMo

Block Butcher Bar

Bottle & Barlow

Broderick Midtown

Buckhorn Grill

Burger Patch

Burgers and Brew

Cafe Bernardo

Café Bernardo’s

Cantina Alley

Centro Cocina Mexicana

Chipotle

Cornerstone

Crepeville

Der Biergarten

Dos Coyotes

Eatuscany Cafe

Elixir Bar & Grill

Faces

Federalist Public House

Fieldwork Brewing Co.

FishFace Poke Bar

Fit Eats

Fox & Goose Public House

Ginger Elizabeth Chocolates

Grange

Highwater

Hot Italian

I Love Teriyaki

Identity Coffee

Iron Horse Tavern

Jack’s Urban Eats

Karma Brew

Kru Japanese

Bombay Bar & Grill

Kupros Craft House

Lowbrau

Lucca

Luna’s Cafe & Juice Bar

Mango’s/Burgertown

Make Fish

Mercantile Saloon

Metro Kitchen & Drinkery

Mikuni Sushi

Monkey Bar

Mulvaney’s B&L

N Street Cafe

Nekter

Nido

Nishiki Sushi

Old Soul Coffee

Pachamama Coffee Coop

Paesano’s

Paragary’s

Pizzeria Urbano

Portofino’s

Press Bistro

Pronto Pizza

Pushkin’s Bakery

Q Street Bar & Grill

R15

Red Rabbit

Rick’s Dessert Diner

Roxie Deli and Barbecue

Sakamoto

See’s Candies

Shady Lady

Shoki Ramen House

Skool

Squeeze Inn

Sun & Soil Juice

Tank House BBQ

Tapa the World

Tea Cup Cafe

Temple Coffee

Thai Basil

Thai Canteen

The Bread Store

The Golden Bear

The Mill Coffee House

The Porch

The Press

The Rind

The Waterboy

Tres Hermanas

Uncle Vito’s Pizza

University of Beer

Waffle Square Country Kitchen

Yogurt a GoGo

Zelda’s Pizza

Zocalo

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NEARBY AMENITIES

SOUTHSIDE PARK

STATE CAPITOL

ROOSEVELT PARK

SUTTER’S FORT

WINN PARK

TRUITT BARK PARKFREMONT PARK

16TH

P

R

20TH

L2300 N STREET

GOLDEN 1 CENTER

Section Two: Building Location 2300N STREET

Sacramento is the Capitol of California, the fifth

largest economy in the world. While perhaps not con-

sidered as prolific as many of the tourism-based cit-

ies in California such as San Francisco, Los Angeles

and San Diego, being the hub of California’s govern-

mental structure provides an incredible amount of

economic stability throughout the region. In addition,

Sacramento is being increasingly recognized as an

outdoor enthusiast’s dream city with its remarkably

central location to Lake Tahoe, the Sierra’s, Yosemite

and the Coast.

In a recent study completed by WalletHub for Na-

tional Nutrition Month, Sacramento was ranked the

5th healthiest city in the United States among 100

large cities (ranking higher than the likes of Denver,

Colorado Springs, San Francisco, Portland, Austin,

San Antonio and Seattle). Forbes magazine ranked

Sacramento as the 10th healthiest city in the United

SACRAMENTO

CALIFORNIA’S FASTEST-GROWING METROPOLITAN AREA

215+15.3 MILLION 71,335DAYTIME EMPLOYEESANNUAL REGIONAL VISITORS BARS / RESTAURANTS

States versus all cities. A big part of this recogni-

tion stems from the cities’ proximity to the American

River. Hiking trails and white-water rafting abound

along the American River as well as one of Sacra-

mento’s crown jewels - the 32-mile American River

Bike Trail which runs entirely along the river from

Beal’s State Park to Discovery Park where it conjoins

with the Sacramento River to Old Sacramento on the

riverfront (only 20 blocks from the Subject Property).

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Section Three: Sacramento 2300N STREET

THERE’S A REASON EVERYONE IS COMING HERE.

#1 Happiest workers in midsized cities

#2 Top 10 most fun, affordable U.S. cities

#4 U.S metro clean tech index

#4 Best cities for nerds

#5 Hot startup cities

#10 Best cities for women in the workforce

#10 Best cities for coffee snobs

#10 Lease Stressed-out cities

#14 America’s coolest cities

#16 Best cities for millennials

SACRAMENTO’S CITY RANKINGS

SACRAMENTO DATA BITESSacramento’s relative affordability versus amenities remains one of its biggest draws. Population growth is expected

to average about 1% (20,000 annually for the region) over the next five years and is expected to outpace the national

average. Household growth continues to far outpace the rate of single-family and apartment deliveries. In recent years,

Bay Area residents have flocked to Sacramento to escape exorbitant housing costs.

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Section Four: Sacramento

FASTER GROWTH THAN AVG IN PRO-FESSIONALS WITH BACHELORS

2013 2015 2017 2019100%

102%

104%

106%

108%

110%

SACRAMENTO REGION ANNUAL SALARY BREAKDOWN:

Over $100,000 - 17%$75,000 - $100,000 - 11%

$60,000 - $75,000 - 10%$40,000 - $60,000 - 18%

$30,000 - $40,000 - 12%Under $30,000 - 32%

LARGEST EMPLOYMENT INDUSTRIES WITHIN 1 MILE RADIUS OF THE PROPERTY:

ANNUAL CONSUMER SPENDING WITHIN A ONE MILE RADIUS OF THE PROPERTY:

Entertainment

Eateries/alc.

Transport

Health & ed.

Household

20 40 60 80*Numbers in millions0

*Based on data from 2019

NUMBER OF EMPLOYEESWITHIN VARYING RADIUS OF THE PROPERTY:

1 MILE 2 3

98,091

131,780

182,349

48% Public Admin. & Sales

17% Science & Tech.

4% Information

5% Healthcare & Social

7% Hospitality & Food

19% Other

WALKSCORE:

95BIKE

SCORE:

99TRANSITSCORE:

50

2300N STREET

ECONOMICS

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Section Four: Economics

E S T I M A T E D O P E R A T I N G E X P E N S E S ( A N N U A L )

2300N STREET

City of Sacramento Utilities $2,700

Garbage $1,500

Property Taxes $13,967*

Property Insurance $2,850

Landscaping $1,440

Pest Control $720

Maintenance $750

Property Management $3,265

Janitorial Tenant Pays

PG&E and SMUD Tenant Pays

Total OpEx $27,191

Net Operating Income $54,408

*Reassessed for the purchase price

R E N T R O L L

Tenant Size Expiration Date Monthly Rent Lease Structure Next Rent Increase

Property Management 900 SF 4/30/2022 $1,620 Modified Gross $1,665*

Acupuncture 900 SF 7/31/2022 $1,600 Modified Gross $1,640**

Law Firm 1,800 SF 9/30/2020*** $3,330 Modified Gross N/A

Parking 12 Stalls $250

Total 3,600 SF $6,800

Annual Rent 81,600

*rent increases on 5/1/2021**rent increases on 8/1/2021***Tenant will revert to a month-to-month tenancy at lease expiration which requires 120-day notice to terminate.

Section Five: Floor Plans

2 2

GROUND FLOORUNIT #1: 900 SFUNIT #2: 900 SF

2300N STREET

SUITE 2001,800 SF

FLOOR PLAN

2300N STREET

2409 L STREET, STE 200 SACRAMENTO, CA 95816

916.573.3300 TURTONCOM.COM

© 2020 The information contained in the Offering memorandum is confidential and is not to be used for any other purpose or made available to other persons without the express written consent of Turton Commercial Real Estate (“TCRE”), Ken Turton or the owner. The material contained herein is based upon information supplied by owner in coordination with information provided by TCRE from sources it deems reasonably reliable. Summaries of documents are not intended to be comprehensive or all-inclusive but rather a general outline of the provisions contained herein and subject to more diligent investigation on the part of the prospective purchaser. No warranty, expressed or implied, is made by owner, TCRE or any other respec-tive affiliates, as to the accuracy or completeness of the information contained herein or any other written or aral communication provided to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communication. Without limiting the general nature of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business affairs, specific finances or specific condition of the Property since the date of preparation of the information. Prospective purchaser shall make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, inspection and review of the Property, including but not limited to engineering and environmental inspec-tions, to determine the condition of the Property and the existence of any potential hazardous material located at the site.

JON LANGVICE PRESIDENT - LIC. 01934934916.573.3302JONL ANG@TURTONCOM.COM

JOHN MUDGETTVICE PRESIDENT - LIC. 01765754916.573.3306JOHNMUDGET T@TURTONCOM.COM

2 5