Crest Theatre Portfolio
The Crest Theater complex is comprised of six business addresses and seven tenants located in two buildings collectively referred to as the “Crest” or the “Property”. Located at between 1011 – 1023 K Street, the Crest is an architecturally extraordinary 36,771 rentable square feet consisting of seven of Sacramento’s most eclectic and successful retail and office tenants.
The Property is being offered at a price of $21,000,000 based on a 7% Capitalization Rate on budgeted 2024 Net Operating Income of $1,450,000.
Purchased in 2011 towards the end of the Great Recession, owner Robert Emerick renovated much of structure, constructed one of the most beautiful restaurants in Sacramento and connected it to the Crest Theater, and fully renovated three additional ancillary restaurants including much of the FF & E to provide one of Sacramento’s most desirable entertainment venues. The Crest Theater itself is a piece of art, seating up to 1,200 ticketholders and having hosted such illustrious talent as Cab Calloway, B.B. King, and a variety of comedy shows such as Bernie Mac, Carrot Top, Sam Kinison. It enjoys a AAA location just two blocks from the Sacramento Convention Center, three blocks from the Golden 1 Center and Downtown Commons, immediate ingress and egress to Interstate 5 and surrounded by six 4-Star hotels and some of the region’s finest restaurants. Sacramento’s regional Light Rail stops steps away from the entry door.
The property features the opulent art deco theater features the historic massive neon Crest Theater sign, old-fashioned marquee, custom-tiled foyer outside, and ornate light fixtures reflecting off a gilded, sculpted ceiling. The Property is fully ADA compliant, and retailers and patrons benefit from generous outdoor seating.
The only office tenant, Public Policy Advocates, is a lobbying firm benefitting from the close proximity (1 block) from the State of California Capitol.
The Property is widely considered to be one of the entertainment pillars of the central business district and a highly reliable investment. It has been consistently leased at 96% occupancy or above since its completion in 2013. This is particularly noteworthy given the recent challenges of the pandemic. Rare retail vacancies are easily released and there is considerable potential upside in expiring leases and percentage rent.