raley's centerof elk grove - Gallelli Real Estate

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store 2-miles east of the Raley's Center is a sign of continued confidence in the Elk Grove market. ... JGallelli@Gallel
FOR SALE

RALEY’S CENTER OF ELK GROVE 4720-5030 Elk Grove Boulevard | Elk Grove, California

RALEY’S GROCER ANCHORED NEIGHBORHOOD CENTER 93% OCCUPANCY | AFFLUENT LOCATION • • • GARY GALLELLI Partner Managing Director L #01099383 [email protected]

• JASON GALLELLI Executive Vice President Retail Group L #01143594 [email protected]

MICKEY TURPEN Senior Vice President Investment Group L #01340787 [email protected]

• • •

Offered by Gallelli Real Estate on an unpriced basis 2006 Construction Estimated in-place NOI $2,345,158 Estimated Year 2 Stabilized NOI $2,590,728 Total building area ±103,853 SF Total shop space ±39,148 SF 89.04% of occupied total building area is national, regional or franchisee

Investment Highlights Rental Rates Poised to Rise Significantly

Exclusive Corner Location

Outstanding Grocery Anchor Store Sales

Of the four other traditional grocery-anchored centers

The Property, located at the Southeast quadrant of

Raley’s reports sales in excess of $35 million annually,

within our trade area, there is a combined ±2,650 square

the intersection, is the sole commercial property at

ranking this store as the second largest grossing grocer

feet of vacancy at two separate properties. The lack of

the intersection of Franklin Boulevard and Elk Grove

in the trade area.

available, quality space in traditional grocery-anchored

Boulevard which has impressive traffic counts of nearly

centers coupled with minimal new construction is putting

±53,000 cars per day.

upward pressure on rental rates.

Average household incomes within a 1, 3, and 5 mile • Northwest quadrant has existing

Income Growth Through Lease-Up The Center currently has ±7,230 square feet available for lease; the next owner has the opportunity to capitalize on this opportunity to increase the center’s cash flow.

Affluent Demographics

single-family homes

radius of the property are $103,324, $92,723, and $82,326.

• Northeast quadrant is Valley High Country Club • Southwest quadrant is protected wildlife habitat that cannot be built on

Tremendous Location The Raley’s Center of Elk Grove is currently the only

Anchored by the Sacramento Region’s Most

grocery-anchored shopping center located south of Elk

Dominant Grocery Chain, Raley’s Supermarket

Grove Boulevard and west of Big Horn Boulevard, an

According to the most recent survey conducted by

area with over 11,800 existing homes.

Scarborough Research, Raley’s/Bel Air has a 48% market share. Raley’s/Bel Air is also the reigning winner of Sacramento Magazine’s Best Grocery Store category as voted on by residents of Sacramento.

Radius TOTAL POPULATION AVERAGE HOUSEHOLD INCOME Demographics 2015, Pitney Bowes

1-MILE

3-MILES

5-MILES

18,522

107,034

206,723

$103,324

$92,723

$82,326

The trade area surrounding the Raley’s Center is a

Major Retailers Present

seasoned location with excellent demographics that also

Many national retailers are represented in the Elk

provides for future growth.

Grove market including Walmart, Target, Home Depot,

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Trade Area Highlights • The City of Elk Grove’s population has grown over

SteinMart, Sprouts, Nugget Market, Burlington Coat

180% since 2000, ranking 2nd in percentage growth

Factory, TJ Maxx, Bed Bath & Beyond, DSW Shoes,

and 1st in marginal growth for the 4-county Sacramento

Michaels, Total Wine & More, among others.

LAGUNA BLVD

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Hobby Lobby, Old Navy, Best Buy, Ross Dress for Less,

MSA. Limited Neighborhood Retail Development Potential • There are nearly ±108,000 more people living in Elk

There are only two development sites between the

Grove now than in the year 2000 (currently 167,965); no

Raley’s Center and Interstate 5 large enough to

other area in the Sacramento MSA comes close to

accommodate a grocery-anchored center. Both of

this rate of expansion.

these sites are sandwiched between Interstate 5 and the existing Raley’s Center, with no new residential

Significant Existing Residential Homes

development possible to the south due to the Wildlife

There are over ±33,000 households within a three-mile

Nature Preserve. For these reasons, these sites would not

radius of the property, more than twice the number

be viable for a grocery tenant.

of households typically required to support the five grocery stores within this area.

Big Box Retail to the East Development along Elk Grove Boulevard east of the

Continued Residential Growth – Elk Grove continues

Center is primarily directed at large retail users including

to be one of the fastest growing residential areas in the

Costco who recently received city approval for a new

Sacramento MSA.

store 2-miles east of the Raley’s Center is a sign of continued confidence in the Elk Grove market.

Dominant Market Position – The three highest-grossing grocery stores including Raley’s, Safeway and Bel Air, are

Retail Development to the South

all located along Franklin Boulevard.

Long-proposed development of the land along Highway 99 and Grant Line Road appears to be

Major Grocers Present – The major grocery stores in

gaining momentum: The Outlet Collection at Elk Grove,

the Sacramento MSA are already represented within the

a ±775,000-square-foot outlet mall and The Wilton

Elk Grove market, reducing the risk of new competition

Rancheria Casino Resort, a $400 to $500 million

cannibalizing existing store’s sales.

development.

ELK GROVE BLVD. STONE LAKES NATIONAL WILDLIFE REFUGE

Zela Elk Grove Nails Cleaners

Lake Point Dental

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Choice Framing Tandoori Flame

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www.GallelliRE.com

GARY GALLELLI Partner Managing Director 916 784 2700 L #01099383 [email protected]

JASON GALLELLI Executive Vice President Retail Group 916 784 2700 L #01143594 [email protected]

MICKEY TURPEN Senior Vice President Investment Group 916 784 2700 L #01340787 [email protected]