Description

Marcus & Millichap is excited to offer the opportunity to acquire San Juan Plaza Shopping Center, which stands out as one of the premier neighborhood retail centers in California, combining a strong mix of national and regional tenants with attractive leveraged and unleveraged cash flow. This 24-unit shopping center features tenants well aligned with the local trade area, including Safeway, Dollar Tree, Eco Thrift, Togos/Baskin Robbins, and La Vie Nail Salon, all on triple net (NNN) leases. The remaining 18 smaller shop spaces are leased on short-term or month-to-month modified gross leases. The large end-cap big box space is landlord-guaranteed for three years after closing at market rent plus NNN charges. These big box tenants cover their proportional shares of common area maintenance (CAM), property taxes, and insurance, as well as administrative fees, which vary by tenant (refer to the operating statement and contact the listing team for details). Safeway, a tenant since 1983, recently exercised a five-year lease extension through 2029 and invested significantly in tenant improvements, including converting part of their space into a regional distribution center, demonstrating their commitment to the location. The Togos/Baskin Robbins franchise enjoys strong sales from this site, resulting in sizable percentage rent payments above their base rent. Located in Citrus Heights, a high-barrier-to-entry suburb of Sacramento, San Juan Plaza benefits from a densely populated trade area of over 158,000 residents as of 2022, expected to grow by more than 1.25% by 2027. Median household income within three miles is approximately $69,254. The center sits at the busy intersection of Greenback Lane and San Juan Avenue, two of Citrus Heights’ busiest thoroughfares, with nearly 46,000 vehicles passing daily as of 2022. Access is convenient via multiple double-wide curb cuts and dedicated left-turn lanes. Visibility is enhanced by a prominent monument sign on Greenback Lane, featuring high-profile branding for the anchor tenants. Neighboring retailers include major national and regional brands such as Sam’s Club, Burlington Coat Factory, Kohl’s, Ross, Lowe’s, Best Buy, and Walmart. San Juan Plaza is anchored by approximately 162,769 square feet of leasable retail space on a 15.58-acre parcel. The center offers ample on-site parking and features conventional construction with glu-lam beam and wood framing over concrete slab foundations, stucco exteriors, flat built-up roofs, and roof-mounted gas-fired heat pump HVAC units. This grocery-anchored retail center provides investors with a stable, cash-flowing asset with below-market or sustainable rents in a highly sought-after suburban infill location. There is significant upside potential by converting smaller shop leases to NNN and adjusting rents to market levels, offering an attractive value-add opportunity in the near term.