Shopko Redding Sells For $13.6MM

By Kristin Bentley

A 94,418-square-foot retail building in Redding sold last month for a little over $13.6 million, or $144 per square foot, and a 7.16 percent cap rate, according to Jacob Abusharkh, a managing director and co-founder of SVN The Kase Group in San Francisco who helped arrange the deal. The buyer is a private exchange investor from the Bay Area and the seller was Dallas-based Sprit Realty, confirmed Abusharkh.

The Shopko, located at 55 Lake Boulevard, is a single tenancy general merchandise store and pharmacy that sits on 9.59 acres and is located adjacent to a grocery-anchored center. The building was originally built in 1989 and renovated in 2004. “The site is high quality, and the lease was extended for an additional five years before the closing,” said Abusharkh in an email. Abusharkh added that the property was not on the market for very long.

The Redding, California Shopko has roughly ­­­­­­­­­11.5 years remaining on a true triple net lease that was entered into on June 1, 2006, according to, an online commercial real estate resource. The current rent is $987,500 per year, or $10.46 per square foot, and is scheduled to increase next June by the lesser of six percent and 1.25 times the change in consumer price index over the previous three years, says the same source.

The property may offer an investor the substantial benefit of outpad development space that can be utilized for additional tenants and rental income, adding inherent value on top of the already strong return on the investment, states This location also benefits from a rent per square foot that is well-below market, providing investors with additional income stability in the future.

Redding is a city in Shasta County located at the very northwestern end of the Central Valley, which transitions into the Cascade foothills, and has a total area of 61.2 square miles. Outermost parts of the city are actually part of the Cascade foothills, whereas southern and central areas are in the Sacramento Valley.

There are approximately 44,096 people within a three-mile radius of this property and more than 90,124 people within a five-mile radius, according to The property is situated on Lake Boulevard, less than one-half mile from Interstate 5, which experiences an average daily traffic count of approximately 75,000 vehicles. Traffic counts on Lake Boulevard are roughly 28,676 vehicles per day, providing a consistent flow of consumers to this Shopko location, says the same source.

West Coast Commercial Real Estate News