Business center for rent on S Stewart St, Sonora, CA

Value-add opportunity with existing income: ±14,589 SF freestanding multi-tenant commercial complex on ±0.41 acres between Sacramento and Fresno in Sonora, CA. Offers (18) easy-to-rent small office/retail spaces leased to long-term tenants - including the USPS - on professionally drafted gross leases. Value-add opportunity with actual current rents of $141,969/year collected plus upside potential. After leasing 6 vacancies ($79,020/year), the realistic 6-12 month stabilized gross annual income is $220,989 at month 12. Further rent growth of under-market remaining units provide potential gross income of $224,410/year the following year. Unique investment offering easy-to-rent office/retail spaces within an under-built market offering a strong need for these type of spaces. Once stabilized, the deal offers TEEN cash-on-cash returns when leveraged. Great visibility, convenient parking & easy access to CA-49 and CA-108 on/off ramps. Many front parking spaces available, ADA access to the 2nd floor via a bridge, and excellent existing corner signage.

 

(4) tenants are at market rents w/ leases until 2021-2023. The value-add opportunity consists of leasing (5) vacancies of 2,824 SF, increasing rent and extending lease length on (3) MTM tenants, and simply extending (6) existing market-rate tenants when their leases expire over the next 6-12 months. While the USPS and restaurant have separate water, propane and electric meters, the remaining suites have further upside to have these charges pro-rated out as customary and standard with a modified gross lease.

All units have high speed Internet, secure entrances, various ADA access points to the 2nd floor from Lyons St Bridge, newer monument sign, and abundant parking. This building is setback, which provides excellent visibility, and LED parking lights. Convenient location, visibility, and access.

Highlights

• USPS Anchored Building W/ Long Term Tenants

• Double Digit Cash-on-Cash Returns After Stabilized

• Investment Opportunity: Leased Office/Retail Spaces

• Long-Term Tenants | Low Turnover | Low Maintenance

• ±14,589 SF On ±0.409 Acres w/ Private Parking + Signage

• Cash Cow To Produce $224K In Rents ($15.38/SF/Yr)

• Rent Growth Of Under-Market Remaining Units

• Quality Construction | Well Maintained | ADA Access Via Bridge

• Long Term Tenants w/ Upside Potential Via Leasing

• Easy Access from Surrounding Major Corridors & Downtown

• Functional Spaces | Easy To Rent | Move-in Ready

• Requires Little Management or Maintenance

• Easy Access to Highway 49 & Major Retail Arterials

• Excellent Existing Signage On 3 City Street Corners

• Well-Known Freestanding Office Building @ Corner Location

• Ample Parking, Quality Tenants, & Great Exposure