Ground Lease Available for 3-Plus Acres on Folsom Boulevard in East Sac

More than 3 acres in a redeveloping area of Folsom Boulevard, including a building that once housed a brewery, is available for ground lease.

The property at 6200-6300 Folsom Blvd. in East Sacramento is mostly vacant but includes some existing buildings, said Ken Turton of listing brokerage Turton Commercial Real Estate.

“A land lessor has the flexibility to develop the entire site,” Turton said, adding the property’s current owner is flexible on how that’s structured.

One of the buildings formerly housed Hoppy Brewing Co. before the latter moved to a site in Old Sacramento and later closed. The building that housed the brewery hasn’t had a tenant since and also has some fire damage, Turton said, making it a candidate for partial or complete demolition.

Another building houses the East Sacramento site for Giovanni’s Old World New York Pizzeria. Though the business isn’t going anywhere, Turton said, the restaurant is on a month-to-month lease.

The 3.42 acres are available on a 99-year ground lease, a condition that typically attracts a large institutional user, such as a medical provider or university, Turton said.

But even a developer with a vision for the site might consider the lease, which also could be renewed at the end of the 99 years, Turton said. An investor looking to buy the property would likely pay 6% or more in an interest rate in borrowing to buy the property, while the land lease, even with increases over time, is unlikely to ever be that high.

“As long as you have 99 years, it may be advantageous to land lease with a low yield value,” Turton said.

There are also options for land leases using part of the site, he added, which could attract a hotel, as an example. The most obvious development would be a multifamily development or one with a mix of uses with hundreds of units, Turton said.

“But i wouldn’t rule out other things, and the owner is flexible too,” Turton said.

In addition to Turton, Kimio Bazett and Matt Axford of Turton Commercial are on the listing.