Trader Joe’s Claims Adjacent East Sacramento Property

A popular grocery chain is expanding its footprint in East Sacramento after signing a long-term lease for a property adjacent to its existing store.

Trader Joe’s, which operates a store at 5000 Folsom Blvd., recently signed a 10-year lease for a nearly half-acre lot next door. The property at 4900 Folsom Blvd. was once the longtime home of ice cream shop Burr’s Fountain, which closed in 2018.

Kimio Bazett of Turton Commercial Real Estate, who brokered the lease deal with colleague Scott Kingston on behalf of the landlord, said Trader Joe’s plans to utilize the property for overflow parking.

One of the drawbacks of the popular grocery store location was its lack of parking along the busy corridor. Bazett said the chain has utilized the property for overflow parking in the past off and on but was on a month-to-month deal with the landlord. He said Trader Joe’s has also been using the existing building on the property to store construction materials for a remodel of the grocery store location.

“We’ve been trying to reach terms for a while on a long-term deal,” Bazett said. “It’s the highest-performing Trader Joe’s in the region, so this will ultimately improve the customer experience.”

Representatives from Trader Joe’s did not immediately respond to a request for comment on Friday.

The property was last acquired for $1.4 million in 2023 by 4900 Folsom Blvd Holdings LLC, which is affiliated with real estate investment and development firm Ridge Capital Inc. The property owner had been marketing the site for sale or lease prior to striking a deal with Trader Joe’s. Bazett said there was interest from multiple parties, but Trader Joe’s offered the most favorable terms.

Monrovia-based Trader Joe’s currently operates nine stores throughout the greater Sacramento area. The chain made a significant investment in the market in late 2024 when it purchased a 441,618-square-foot industrial building in Rancho Cordova for $85.2 million.