Starboard Realty Places Sacramento Shopping Center up for Sale with $23.4MM Asking Price

Sacramento, Starboard Realty, Florin Towne Centre, CBRE

By Jon Peterson

Some neighborhood retail locations have done over the last couple of years during a time when the global COVID-19 pandemic affected the retail sector tremendously. This has led Irvine, Calif.-based Starboard Realty to test the market by placing for sale its 79,663 square foot community shopping center Florin Towne Centre in Sacramento located at 6001-6081 Florin Road. The asking price for the property is $23.4 million, or roughly $294 per square foot, according to the property’s offering document.

The seller did not respond to an email or phone call seeking a comment for this story. However, the company did engage CBRE’s Capital Markets National Retail Partners West Team based in Newport Beach, Calif. as the listing agent on the sale. Some members of the team involved in the marketing of the property include Philip Voorhees, James Tyrrell, Megan Lanni and Trent Steeves.

If the offering price is achieved on the sale, the transaction would deliver a one-year cap rate to the new owner of 7.25 percent, as stated in the property’s offering document. This return would be based on the first-year net operating income in the property of $1.7 million. Over a 10-year holding period, the NOI is projected to grow by $687,459, according to the offering document.

The property has a high-performing Walmart as an anchor tenant in the complex. Other major tenants that have joined the national big-box retailer include Subway, Metro PCS, Quest Diagnostic and Eyeglass World. The property also includes two restaurants as tenants, and they are Wayback Burger and Seafood Buffet. The retail center has a current occupancy level of 87 percent, and there is around 10,000 square feet of vacant space in the asset. This vacancy could be filled in a couple of ways, which could include bringing in a new tenant to occupy the empty space or optimizing an owner/user opportunity, according to the marketing document.

Florin Towne Centre was first developed in 2008, and it has a total of seven buildings that make up the property. The asset is zoned in a region that would only allow retail uses on the land, so redevelopment is not a likely option. The parking operation at the center provides for around 1,500 parking stalls, which is covered under a shared parking arrangement.

The shopping center is located at the intersection of Florin Road and Stockton Boulevard where roughly 61,200 cars per day go through the area. The demographics of the area near the property vary from 22,400 people with an average household income exceeding $55,700 within one mile, to 508,300 people and an average household income in excess of $78,500 within five miles of the property.

Starboard Realty is a buyer of both retail and multi-family assets in either primary or secondary markets, according to its website. The retail properties it focuses on include grocery-anchored assets or value-add properties that need to be repositioned or have empty space that needs to be leased. Its multi-family properties include B+ to A quality assets in secondary markets with a size preference of 150 to 250 units.

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