September 28, 2021 8:00 AM
Newmark Knight Frank ("Newmark") announces it has completed the sale of Folsom Gateway, a 242,582-square-foot regional retail center located at 2425-2445 Iron Point Road in Folsom, California. Situated within the city's primary retail hub, the property is home to a diverse tenant mix including Sam's Club, REI, Staples and Best Buy.
Newmark Vice Chairman, Head of Retail Capital Markets Northern California Nicholas Bicardo facilitated the transaction. The seller was an entity affiliated with Braddock and Logan, and the buyer was Sacramento-based Pappas Investments.
"Folsom Gateway is a strong regional grocery anchored asset with a very attractive weighted average lease term that is well positioned to capitalize on the future growth in the surrounding area," said Bicardo. "We saw tremendous interest from both institutional and private capital for this asset."
Folsom Gateway is the premier grocery anchored regional center within the trade area. Anchored by a 131,652-square-foot Sam's Club and fuel station on a long-term ground lease, the property benefits from being positioned at the "gateway to Folsom" drawing customers from a 20-mile radius and benefiting from Highway 50 visibility. The outparcel tenant mix is comprised of necessity-based retailers including food, financial, dental and fuel providers.
Folsom Gateway is adjacent to Folsom Ranch, one of the largest master planned communities in Northern California. This development is anticipated to transform the area by attracting thousands of employees, providing over 11,000 new residential units.
The property is strategically located in the heart of the Folsom Retail Hub, a Sacramento sub-market containing over four million square feet of space in addition to being one of the most affluent retail trade areas in the region. The population of 114,756 within a 5-mile radius has grown 15 percent over the past 10 years and is expected to grow an additional six percent over the next five years, according to Newmark Research. The property also benefits from its proximity to a dense daytime population of over 57,000 employees passing within a five-mile radius.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Our comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, growing startups to leading companies. In 2020, Newmark generated revenues in excess of $1.9 billion. Newmark, together with London-based partner Knight Frank and independently owned licensees, operates globally from approximately 490 offices with 19,300 professionals. To learn more, visit nmrk.com or follow @newmark.
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