Artwork by local artist Caroline Dale @rolinex
S ACR A MEN T O COMMERCIA L RE A L E S TAT E, DE V ELOPMEN T, A ND CULT URE
08
What’s going on with interest rates?
ISSUE TEN
23
Q&A: Getting to know our local artists!
43
[Sub]urban legends about urban Sacramento!
TURTON
W RI T T E N , P HO T OGR A P HE D, A ND DE SIGNE D IN - HOU S E BY T HE T UR T ON T E A M
SPRING 2022
E T P RO A V JECT ELE
ELK GROVE’S TIME IS NOW.
17 ACRES FOR SALE | 600 + RESIDENTIAL UNITS | 100,000 SF OF OFFICE | 100,000 SF OF RETAIL | 100 ROOM HOTEL
SCAN FOR RFP
TURTONCOM.COM | 916.573.3300
TURTONCOM.COM 916.573.3300
LET’S GET CONNECTED!
Lease a piece of Sacramento’s past, be a part of Sacramento’s future.
TURTONCOM.COM | 916.573.3300
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BEFORE WE BEGIN... MUSINGS FROM
KEN TURTON
Brokerage
Ken Turton
President Lic. 01219637
916.573.3300 | kenturton@turtoncom.com
Those who are familiar with me, or my occasional anecdotes, know my wife and I are backpackers. We began multi-day hiking in 2008 on a dare from some friends. Our backpacks weighed over 40 pounds, we vomited in the middle of a storm at 10,000 feet and 14 years later have completed almost three dozen of the world’s greatest treks. There’s a lot to love about backpacking, but one thing we didn’t expect was how much we enjoyed the personal interaction with those we were hiking with. Of course, when you spend 4 to 17 days with someone in the backcountry with no television, Wi-Fi, or internet you are most definitely going to get to know one another. We’ve trekked with doctors with stage four cancer in the Dolomites, bare foot porters in El Chaltén, 50-year anniversary couples in Tasmania, newlyweds in Corsica, pharmacists in Tanzania, transient ski guides in Switzerland, quantum physics professors in New Zealand and yogis in Peru. We’ve befriended hikers from all over the world, most of which are from everywhere but the United States. Some conservative, some liberal, none stupid, most beer or wine lovers, and all with their own perceptions about life, politics, and culture. Many times, we would be sitting in a camp or refugio listening to the banter of world perceptions as viewed through the stained glass of others’ culture, circumstance, and upbringing (and maybe a little cannabis). We discovered that exposing ourselves to these opinions and perceptions provided us with an expansive empathy and understanding that most people are good and well-intended. It was incumbent upon us to listen, understand and respect their perspectives, even if they didn’t align with our own. Two weeks ago, I was enjoying a latte at the local Temple Coffee house two blocks from our office at 22nd and Capitol Avenue. I sat outside surrounded by six tables of distinctly diverse opinions and conversations. None with foreign accents, but all unique in their own way. It was enlightening and refreshing. And I thought how easily these conversations would blend into an international hostel. Then I walked back to the buzzing little eclectic hive of personalities in our own office. Ages ranging from 22 – 50, all educated, opinionated and from varied demographics, environments, and circumstance. Always a fascinating and often entertaining combination of thought (and occasional adult beverage). There’s a lot to love about backpacking. But you don’t have to travel half-way around the world to experience the beauty of human interaction and different perspectives. You can do it right here in Midtown… at Temple Coffee… or even your own office (if it’s in Midtown!)
Aaron Marchand
Senior Vice President Lic. 01711650
916.573.3305 | aaronmarchand@turtoncom.com
Jon Lang Esq.
Senior Vice President Lic. 01934934
916.573.3302 | jonlang@turtoncom.com
Scott Kingston
Senior Vice President Lic. 01485640
916.573.3309 | scottkingston@turtoncom.com
Patrick Stelmach
Vice President Lic. 01964999
916.573.3314 | patrickstelmach@turtoncom.com
David Khedry
Director Lic. 02063469
916.573.3303 | davidkhedry@turtoncom.com
Matt Axford
Director Lic. 02124801
916.573.3308 | mattaxford@turtoncom.com
Jack Scurfield
Director Lic. 02127988
916.573.3316 | jackscurfield@turtoncom.com
Kimio Bazett
Director Lic. 02152565
916.573.3315 | kimiobazett@turtoncom.com
Project Management
Melody Jones
VP - Project Management Lic. 01296376
916.496.1527 | melodyjones@turtoncom.com
Commercial Finance
John McCallum
SVP - Commercial Finance Lic. 01177134
916.573.3313 | johnmccallum@turtoncom.com
Marketing
Brooke Butler
VP - Operations & Marketing Lic. 02086576
916.573.3301 | brookebutler@turtoncom.com
Corey Lau K E N T U R T O N - PRESIDENT
Creative Director
916.573.3304 | coreylau@turtoncom.com
Justine Franklin
Marketing Director
916.573.3304 | justinefranklin@turtoncom.com © 2022 This information has been secured from sources believed to be reliable. Any projections, opinions, assumptions or estimates used are for example only and do not constitute any warranty or representation as to the accuracy of the information. All information should be verified through an independent investigation by the recipient, prior to execution of legal documents or purchase, to determine the suitability of the property for their needs. Logos and/or pictures are displayed for visual purposes only and are the property of their respective owners.
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Consume regularly for best results! I S S U E 10 SPRING 2022
ISSUE 10 - SPRING 2022
CONTENTS 07
Things About the Industry You Should Know
08
What’s Going On With Interest Rates?
11
Downtown Sacramento’s Path to Greatness
13
Know the Local Sweet Spots!
14
What to Do With Idling Urban Parking Lots
17
How Urgent is That Call?
19
An Analysis of Midtown’s Pizzas!
20
Stocks, Crypto, or Sacramento Real Estate?
23
Getting to Know Our Local Artists
31
Legalese With Lang: Title Reports 101!
33
My Love For Midtown’s Victorian Buildings
35
The Future of Sacramento’s Large Restaurant Spaces
39
Bird’s Eye View: A Day in the Life of a Rideshare Scooter
40
Save Money in the Long Run With Multi-gen T.I.s
43
Suburban Legends About Urban Sacramento
47
A Brief Chat With Marvin Maldonado
Top: Part of a stunning new tryptich mural by Brandon Gastinell on the J Street Burgers & Brew depicting American Expressionist Jean-Michel Basquiat!
A photo we love! New apartments going up! The development of Sac Commons on 7th Street will bring much-needed residential to Downtown Sacramento. Read more on page 11!
SINCE LAST ISSUE OF GRID...
St at s y ou
k for! Didn't as
Net gain of team members: 3 Photoshoots of McCallum: 3 Mead explosions: 2
We expect this issue of GRID to give you: A sense of the local market A few good one-liners to tell at parties
35%
25%
25% 15%
A slight hint of revulsion Feelings of envy that you don’t work at our firm
“Poo-Pourri” bottles used: 9 Bubble soccer games played: 1 Outbursts over dishes: 5
How long we’ve been waiting: In line at World Famous Hot Boys
25 minutes
For Corey to wash his dishes For the Sac Mardi Gras Parade To go to concerts unworried For Ken to wrap up his metaphor To hang up our art in the office
~4 months 40 years 2+ years Half the meeting 18 months
SMALL SPACES BIG OPPORTUNITIES
SCAN FOR PROPERTIES
Envoy @ 11th and J Streets, under construction now!
SMALL SHOP RETAIL SPACES IN THE GRID ENVOY, HARDIN, 17 CENTRAL, FORUM BUILDING, MANSION, 1421 R STREET, LINQ, SACRAMENTO COMMONS, THE PRESS BUILDING, o1 LOFTS, 729 L street, & more
T U RT O N C O M M E R C I A L R E A L E S TAT E
T U RT O N C O M . C O M
9 1 6 . 5 7 3 . 3 3 0 0
WHEN YOU LOOK AT THE CITY, DOES THE CITY LOOK BACK AT YOU? DO WALL-HEIGHT WINDOWLINES GLIMMER WITH UNENDING OPPORTUNITY? DO SQUARE-FOOTAGES, LEASE EXPIRATION DATES, AND PERSONAL CELL NUMBERS OF LANDLORDS DANCE ACROSS YOUR VISION IN A DIGITBASED HALLUCINOGENIC MAELSTROM?
AUGMENT YOUR REALITY WITH OURS USING TURTON-VISION!* SEE LEASE EXPIRATIONS, PROPERTY VALUES, AND OFF-MARKET INFORMATION! *Turton-Vision can be acquired via meeting or call with one of our brokers
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Words can be hard! Some ideas are best illustrated visually.
THINGS ABOUT THE INDUSTRY
YOU SHOULD KNOW
I S S U E 10
- DIRECTOR
SPRING 2022
Probability of various occurrences:
What makes a good broker?
You wearing Cole Haan Zerogrand shoes
Marketing capabilities
Responsiveness 4.00 1.5 2.25
Off-market knowledge
.75
10%
CoStarprovided lunches
35%
25%
General health & well-being
30% Coffee meetings
Time in the industry
Chipotle
Unexpected common ground with others:
Commercial Real Estate Brokers
“This could be my big breakthrough!”
Lead Male in Hallmark Christmas Special
Wearing a puffy vest of some kind Can distinguish between the salad and dessert fork
Tears frozen on their face
Titanic Survivors
Current difficulty level:
Expectations vs reality of the job: Lunch dates with influential people!
Touring buildings!
High
Closing deals!
Classic rock playing in your mind!
Low
How do you measure a good commercial real estate broker? We gave our coworkers 12 points to distribute amongst qualities they value most and averaged them. Each quality maxes out at 5 points. n=8
Drinks at industry events
Pointing at a random building and saying “I’ve been in there”
Wanna know more about being a commercial agent? Start off with the proper level of cynicism by analyzing our infographics about the industry! When I tell people what I do for work, I tend to get two responses: 1) “how much is my house worth?” and 2) “I can do that!” I’ll then spend the next several minutes of whatever social occasion I’m at elaborating on the highly-exclusive, competitive nature of the industry which only serves to conjure Wolf of Wall Street style fantasies behind the glossy eyes of my conversational partner. And yes - commercial real estate brokerage is definitely an exciting role to undertake with an open-ended pay scale, but it’s also one of the hardest jobs out there where you don’t swing a hammer. For me, the unending work hours, years-long deals, and stressful negotiations are absolutely worth it though, because I get to be part of the evolution of our city. I guess the commission checks are nice, too.
Where new brokers’ dietary calories come from:
Your friends calling you a gentrifier
Likelihood
MATT AXFORD
Zoolanderesque good-looks
2.00 Deal creativity
Office and retail leasing
Industrial leasing
Getting new clients Getting a Investment Making $$$ job offer sales with tenant rep from Ken
Things good CRE brokers experience: - Inhaling as much asbestos as a demo crew - The satisfaction of making change in the city - A healthy sense of skepticism regarding new deals - Already knowing the industry before starting
Clients unwilling to compromise
Dead-end cold calls 4 to 8 hours per day
Caffeine addiction Starting every workday at 5:00 AM...or earlier
Litigious negotiations
Work-life balance issues BMW maintenance costs
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Federal law prohibits turning the page before finishing the article! I S S U E 10
JOHN MCCALLUM - SENIOR VP - COMMERCIAL FINANCE
WHAT’S GOING ON WITH
INTEREST RATES?
SPRING 2022
Interest rates vs. inflation: 25%
Federal Interest Rates US Inflation Rate
20% 15% 10% 5%
Rising consumer prices are a frequent discussion today and many attribute this to inflation; however, this is merely a symptom of inflation. Inflation is generally created when demand exceeds supply. Demand generally increases when there is an increase in the money supply. Frequently linked together, inflation and interest rates respond in an inverse relationship. When interest rates are low, the economy grows, and inflation increases. Conversely, when interest rates are high, the economy slows, and inflation decreases. Inflation is at the highest mark in many decades. Economists will say that we are to look at the relative strength of the dollar and the expectation of continued liquidity. Current federal policy is shifting to increasing interest rates. As a result, the cost to service new debt payments will increase. More importantly, as it pertains to long term debt financing for commercial mortgages, the Fed has begun de-leveraging their quantitative easing program. This means the Fed is reducing the purchase of their own long term Treasury bonds. Treasury
bond yields will likely increase to attract outside capital to replace federal purchases. Most long-term debt packages from enders are based on the 3, 5 and 10 year Treasury yield rates. Therefore, it is likely interest rates will rise (and we are already seeing that). Interest rates are often based on a treasury yield index (like the 10-year Treasury bill rate) and margins of risk are added to the index to create the borrower’s final interest rate. Margins of risk can be determined by business and property cash flow, collateral, loan size, use of loan proceeds, guarantor liquidity and credit positions and, most importantly, market conditions. Seeking to minimize risk positions and maximize long-term planning are effective tools to offset the continued impact of inflation. Many borrowers will pay a prepayment penalty to lock in long-term fixed interest rates to hedge against the expected interest rate increases. Inflation looks to be here for a while. If you have a mortgage note due in the next 3 months to 3 years, now is the time to refinance your commercial real estate!
“So my mortgage comes due in ten months, my partner wants out, the property needs a million dollars in improvements, and interest rates are going up...” “Is that all? We can fix that!”
2020
2014
2008
2002
1996
1990
1984
0% 1978
Y
You’ve been hearing a lot about them lately. You know they have an impact on the price of real estate. And you know they’re rising. Interest rates, after reaching their lowest point in history, are now creeping up and upending many commercial investors’ planned strategies as the pro-formas change. What does it mean for you?
What my daily phone convos consist of: Difficult conversations about interest rates Muttering expletives
Setting realistic expectations with clients
6%
48%
9% 16%
Arguing with banks on behalf of clients
21% Talking people off cliffs
MULTI-PAGE QUIZ!
HOW “MIDTOWN”
ARE YOU?
Start at zero. Add or subtract points for each answer. Quiz ends further in the magazine.
1. YOUR LAST ADRENALINE RUSH WAS: A) Riding a scooter down the ramp from Sutter’s Landing. (+25) B) When you scurried across the tracks without having to stop for the light rail. (+15) C) When you walked past an alley in the Handle District and saw a dumpster. (-25) D) When you learned that someone was going to build a duplex in your neighborhood. (-35) 2. YOU __ KNOW HOW TO ROLLER SKATE. A) Do. (+45) B) Do not. (-20) 3. YOU LIKE TO EAT: A) Cultural dishes you're not familiar with. (+15) B) Fancy salads, hipster hot dogs, trendy tacos, or bougie burgers. (+25) C) Food designed to be pleasurable through intense corporate R&D and sold via drive-thru. (-30) A) The tears of cyclists as you blast them with your exhaust. (-100) CONTINUED ON PAGE 23
TURTON COMMERCIAL REAL ESTATE - 916.573.3300 - TURTONCOM.COM
DESTINY control your own destiny orOWN someone else will. “CONTROL YOUR DESTINY OR SOMEONE ELSE WILL” - JACK WELCH OWNER-USER OFFICE BUILDINGS AVAILABLE FOR SALE IN SACRAMENTO 2620 J 5207 J 918 J 2012 P 2000 I 1817 Capitol
$1,450,000 $1,625,000 $1,650,000 $1,850,000 $1,995,000 $2,120,000
1415 21st $2,275,000 1315 I $2,600,000 1221-1225 H $2,900,000 930 G $4,800,000 3000 L $5,400,000 1919 19th $5,900,000
Ken Turton
TURTONCOM.COM | 916.573.3300
SCAN FOR INFO!
RETAIL FOR LEASE | BOLD - AUTHENTIC - NOSTALGIC | COMING SPRING 2022
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Hooray, a divisive article ever y Sacramentan can weigh in on! I S S U E 10
BROOKE BUTLER - VP - OPERATIONS & MARKETING
SPRING 2022
DOWNTOWN SACRAMENTO’S
PATH TO GREATNESS Aside from intentionally accelerating climate change so that the polar caps melt and raise the ocean to the levees, making it a beach town, what can Downtown (not Midtown) Sacramento do to become a great community? Let’s talk about the five aspects of what makes a downtown strong and how we can improve! Sacramento Commons - 436 new apartments over retail.
CLUSION 2 I N state: Current Current state: It’s not cheap to live Downtown. The ones who can afford it tend to be on the whiter, middle-classier side. Also, the population is 11,908 - surprisingly low for an urban core. Retail amenities here are fairly narrow in their offerings: a few restaurants, a few bars, no grocery stores, and no hard goods.
Path to greatness:
1
ECONOMY
Current state: About 80% of Downtown’s land-use is commercial 67% of it office. Most of these offices are occupied by government entities, legal, and non-profit tenants. We also have medium-strength experience districts which are confined to small atomized locations and can come across as manufactured (“DOCO,” “The Kay,” “Old Sacramento Waterfront,” etc). Retailers here have struggled since the pandemic sent the daytime worker population home for two years.
Path to greatness: Due to our economic dependence on the daytime State worker, getting government employees back in the office is a short-term solution to resurrecting our Downtown. Long-term, the solution is to increase the amount of housing so that businesses benefit from an ever-present residential population.
URBAN SAC RENTAL DATA!
6,144 total rental units 562 completed units 2021 3,332 units under construction 16,422 units planned 96.1% rental occupancy
The number of residential units needs to be increased drastically - like, tens of thousands - so that Downtown is not an exclusive place to live with prohibitive rental rates. Good retail amenities will follow naturally. One thing to note is that a variety of unit types must be built. It’s extremely rare to find the 3 or 4 bedroom apartment a family would need to live Downtown. And a fresh Sac State grad just starting out might not want more than a cozy studio. By creating opportunities for more types of people to live Downtown, we’d become a more diverse city with more exciting experiences available.
3
VIBRANCY
Current state: Although Downtown Sacramento is the regional epicenter of art, music, food, and public events, the energy level can be low outside of DOCO. Additionally, most of Downtown seems to operate on an 8 to 12 hour economic cycle (18 would be ideal).
Path to greatness: Increasing the vibrancy of our city is a chicken-orthe-egg situation: Vibrancy is increased when more people are present; more people are present when there are more things to do; and things to do come into existence when there are enough people around to support/justify them; etc. To break this cycle, we need to add more people to the equation. Vibrancy has a snowball effect and adding more residents will have compound effects which increase Sac’s energy.
4
RESILIENCE
Current state: While still more insulated from economic shocks than surrounding communities, Downtown Sacramento can no longer rely on the steady, stable government workforce to prop up restaurants and retailers. Almost all of Downtown’s zoning is for commercial and has historically been a commuter city, full of suburban commuters during the workday and nearly empty in the evenings.
Path to greatness: A resilient downtown requires diversification of use...*awkwardly avoids eye contact* Almost all the current use is commercial office. Strengthening Downtown Sac’s residential population through multifamily development is key in filling in for the potential absence of office workers.
5
IDENTITY
Current state: Downtown Sac is the politics hotbed of California. But aside from that, what can you do in Downtown Sacramento that distinguishes it from the rest of the region? Not much, other than Kings games, bigname concerts, and a subterranean Gold-Rushthemed mini-golf course. For most people, it’s just a landmark on the way to SF / Tahoe, probably.
Path to greatness: Sacramento leadership has to choose an identity and invest consistently in it. And I’d stay away from branding us as Where Sutter Made His Fortune in the Gold Rush, or Two Hours From [blank]. Because in reality, a successful city is one that’s just cool to be in and appeals first to the local residents. Downtown Sacramento would benefit greatly from the perception that it’s a lively, active area with interesting people, art, and nightlife. And the best way to begin that process is by, believe it or not, building more housing!
2021 Annual Report - Downtown Sacramento Partnership
Top: Sacramento Commons, the largest and highest profile mixed-use project under development in Sacramento’s urban core, will provide 436 new multi-family apartments and retail space near 7th and O Street.
FOR LEASE: Urban office space in the heart of Sacramento
1130 K STREET Only one block from the California State Capitol 629 - 168,019 SF Available April 2022! WITH 2 NEWLY-BUILT FLOORS AND A WRAP AROUND TERRACE!
TURTONCOM.COM 916.573.3300
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Perfect for the fast-metabolismed Sacramentan seeking a hy perglycemic blaze of glor y! I S S U E 10
JUSTINE FRANKLIN - MARKETING DIRECTOR
Vegan / gluten friendly
Ice cream
Popsicles
Gelato / sorbet / froyo
Shakes / malts / floats
Hot chocolate
from Real Pie Company. And if I’m on the Old Sac Waterfront, you know darn well I’m getting some Sour Belts from Candy Heaven. Know which places sell what so you look hip and knowledgeable about the city! Be sure to bring a copy of GRID on your first date so that, if things are going well, you can refer to this chart for dessert. Your prospective partner will find it charming and totally not weird at all!
Pie
Cake / cupcake
Cookies
Candy
Donuts
Rick’s Dessert Diner in Midtown!
Some vices you just can’t get enough of. For me, it’s sugar. Sure, there may be some banter about the health impacts of sucrose, but of one thing there can be no doubt: sweets are good for the soul. And, luckily for my soul, Sacramento is sprinkled with sweeteries in abundance. In the cold season, I always crave Ginger Elizabeth’s Rose Petal Hot Chocolate. For birthdays, I’ve been picking up Butterscotch Banana Cream Pies
Pastries
SWEET SPOTS!
Do you know where to get a popsicle in Midtown or are you out of touch?
Chocolate
KNOW THE LOCAL
SPRING 2022
Rick’s Dessert Diner 2401 J Ginger Elizabeth 2413 J & 1801 L Babe’s Ice Cream & Donuts 2417 J Stanely’s Donuts 3710 J Pushkin’s Bakery 1820 29th Milk Money 1715 R Creamy’s by Cayla Jordan 1610 R Odd Cookie Bakery Café & Bar 1015 9th Icing On The Cupcake 2416 J Real Pie Company 2425 24th Devil May Care 710 K Insomnia Cookies 414 K Popbar 405 K Candy Heaven 1201 Front “Our bakery and restaurant have operated successfully in Midtown for years now, so it made sense to open [Babes] in here as well.” - Danny Turner (Pushkin’s, Sibling, Babes) “Chocolate fascinates me. Something about the combination of technical skill and artistic expression draws me to working with it.” - Ginger Elizabeth Hahn (Ginger Elizabeth) “I was the manager at Rick’s Dessert Diner and the minute I had the opportunity to buy the business, I did. I fell in love with the concept of dessert and the ‘50s theme. I learned all the recipes from the beginning. I found my nature. Some recipes are my Grandma’s.” - Ahmed Eita (Rick’s Dessert Diner)
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If you’re a land banker, the time to cash out is now! PATRICK STELMACH - VICE PRESIDENT
I S S U E 10 SPRING 2022
WHAT TO DO WITH IDLING URBAN
PARKING LOTS T
The post-war proliferation of car-brain really changed the way we use land in Sacramento. Instead of investing in a dense, vibrant urban core, old buildings in need of renovation got torn down and replaced with surface parking lots (at least in many cases). Now, however, urban lot owners are realizing the value of development.
No one knows how many parking spaces there are in the U.S., but some estimates put the number around 2 billion seven times the number of vehicles and six times the number of people. As much as 30% of the space in some downtowns is taken up by space to park cars. Surface parking lots turn central cities into containers for cars rather than gathering places for people, empty public spaces that should be bustling with vitality. Now Covid-19 quarantines and business shutdowns eliminated many commutes and evaporated cars off the roads and out of downtown parking lots and garages. The decrease in parking demand has been dramatic. Subsequently, many ownerships of parking lots and garages that depend on parking revenue are facing enormous reve-
nue shortfalls the past two years. The parking industry saw parking volumes in many areas fall by up to 97%. Commuter lots had a 50% to 70% reduction in use, while visitor lots saw up to a 95% drop compared to 2019. While parking will continue to be part of the urban ecosystem for the near term future, it is no longer a reliable asset to generate steady income as it once did. Even when local economies reopen, there will most likely be an overall longterm decline in parking facility use. Parking lot owners must think creatively about repurposing existing structures and future-proofing new buildings that contain parking. The silver lining of the pandemic could actually be opportunities for infill development and changes in options for
Above: TCRE brokered the sale of this parking lot at 714 14th Street to architect-turned-developer HRGA for their own offices.
making money with parking lots - and shift what is possible for new uses for parking spaces and lots. Ownerships of parking lots and garages have to take a serious look at options. With the guidance and advice of an experienced land broker, those could potentially be highly profitable: Option A: Try your hand at development and build an income-generating project, like high-density multifamily residential or mixed-use. There is significant cost and risk in hopes of creating enormous value. Option B (recommended): Hire a broker to sell the asset to a developer for highest land value, and 1031 exchange the sale proceeds into a low-risk NNN leased investment that has a cash flow. Option C: Have an architect entitle the land for a development on paper, then hire an experienced land broker (like me!) to sell the project to a builder.
turtoncom.com | 916.573.3300
change the
sky line FOR SALE: SACRAMENTO LAND FOR DEVELOPMENT 1725 23RD STREET: THE WP: CASCADE: 13C: 1730 24TH: 7E: 15G: 16E: 1511 + 1517 I:
51,000 28,943 25,600 25,600 24,000 14,728 9,497 6,578 6,400
SF SF SF SF SF SF SF SF SF
I NVESTM ENT P RO P E RTI ES 2009 N Street Sacramento, CA Retail / Multifamily $1,745,000 Cap Rate: 5.50%
721 9th Street Sacramento, CA Office $4,795,000 Cap Rate: 7.31%
2401 15th Street Sacramento, CA Retail/Office $1,795,000 Cap Rate: 5.40%
620 N Aurora Stockton, CA Office $8,500,000 Cap Rate: 7.50%
1309-1315 I Street Sacramento, CA Office $2,600,000 Cap Rate: 5.00%
9591 Laguna Spr Elk Grove CA Office $9,900,000 Cap Rate: 6.91%
916.573.3300 turtoncom.com
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Not dropping any hints to certain tenants who call me too much or any thing...okay, yes I am. I S S U E 10
DAVID KHEDRY - DIRECTOR
SPRING 2022
Unrelated and somewhat useless data from our office! The most noticeable noise in the Turton office is:
Khedry making calls 8% McCallum 8% making 50% The calls infamous 17% HVAC Constant 17% whine background chatter Rad tunes playing on the speakers
n=12
Above: We make lots of calls; we get lots of calls - it’s just the nature of the business, and we love it!
HOW URGENT IS THAT CALL? As an office tenant, knowing when to reach out to your broker can give you a huge advantage. And by “your broker,” I mean me!
URGENCY KEY
Is the bartender flirting with me? Will anyone in the office notice if I take the last donut? Should I take advantage of my boss’ good attitude to ask for a raise? In life, we look for indications to take action, go a different direction, or simply wait. The world of office leasing is no exception. Tenants may find themselves either over-compelled or overly-bashful to contact a broker about something. To help know when it’s worthwhile, see our list of common office tenant situations and how urgently you should contact your broker about them! CALL RIGHT AWAY! This situation warrants an immediate discussion! WORTH CONSIDERING Could be smart to call but not urgent! HOLD UP Some things aren’t worth calling your broker for!
YO U R S I T UAT I O N
S H O U L D YO U C O N TA C T A B R O K E R ?
“Our lease expires in two years, but instead of renewing, I want a floor higher up in the building with better views of I-5 so that I can watch my employees come in late.”
CALL RIGHT AWAY! A bit early, but it never hurts to start exploring options.
“Most of our team is working from home so we have unused space in our office. I hate hearing my echo all the time – could my broker help?”
CALL RIGHT AWAY! We can discuss potential solutions such as subleasing.
“I just heard the company down the hall pays less rent, has more space, and was gifted Rolexes by the landlord! Can my broker help us?”
WORTH CONSIDERING Depending on your future plans, you could amend your lease!
“We have leased at our current building for the last 18 years. We might stay, but are hoping to downsize. However, when I looked online, nothing fit our needs.”
CALL RIGHT AWAY! Brokers’ value comes largely from our knowledge of off-market deals!
“Parking. We gave all of our reserved spaces up when the pandemic started and now we need them again as we transition back into the office.”
WORTH CONSIDERING Usually your landlord can help, but if not, brokers are parking lot experts!
“Now that I have a track record of several years of business under my belt, I am ready to lease my first office space. Time to get Craigslist fired up!”
CALL RIGHT AWAY! Engaging a broker enlarges your list of options, both on and off market.
“We are subleasing our space, and don’t need our furniture. Could the subtenant buy it from us?”
CALL RIGHT AWAY! Brokers know how to quantify furniture into sublease arrangements.
“My broker just signed another tenant in my building. I wanna know their lease terms!”
HOLD UP A broker can get you the latest info, but confidentiality is above all.
“What does it look like to buy/own a building versus leasing?”
CALL RIGHT AWAY! Smart analysis to do - consult an agent who works in both leasing and sales.
“We are currently leasing our building, yet the ownership is planning on listing for sale, and we could be willing buyers. Who do I talk to?”
CALL RIGHT AWAY! We do this all the time!
“We need an additional 5,000 SF of office space adjacent to our current 10,000 SF. That should be a breeze to find in our almost-fully-leased building, right?”
WORTH CONSIDERING A broker who knows the moving parts of the building can help a lot.
“There’s a broken light in our kitchen and the toilet has low pressure. Better call my broker!”
HOLD UP Call your mom while you’re at it! Really, you should call the property manager...
TURTON
turtoncom.com | 916.573.3300
Elliott 1530 J Street
Ol Lofts 1020 16th Street
Marrs 1050 20th Street
Cannery 1631 Alhambra
RAD URBAN
office for lease
1
9
I read GRID for the articles, I swear! I S S U E 10
SCOTT KINGSTON - SENIOR VICE PRESIDENT
SPRING 2022
FOR YOUR CONSUMPTION:
AN ANALYSIS OF MIDTOWN’S PIZZAS U 1
Unless you have like, a condition or something, you enthusiastically appreciate pizza. All instances of this being untrue are statistical outliers and should be ignored. For your enjoyment (but mostly ours), we conducted a highly-empirical analysis of some of Midtown Sac’s newish pizza places. All samples were a level playing field: a cheese pizza.
A troublesome pizza occurrence:
Pizzasaurus Rex
2322 K Street
Ultra thin crust Sweet / tangy sauce
Savory / herby sauce
Pizzasaurus Rex has perfected their own proprietary build: thick crust basin for the jacuzzi of stretchy cheese resting on top. Not a beginner pizza.
Light, fresh cheese
Heavy, greasy cheese
Federalist Public House
Stiff Traditional
Ultra thin crust
Inventive
Thicc & fluffy
Sweet / tangy sauce
Savory / herby sauce
Leaning more toward traditional Italian pizzas, The Federalist goes light on the cheese, easy on the sauce, and all-in on dough quality. A popular must-try!
Light, fresh cheese
Heavy, greasy cheese
1
Pizza Supreme Being
1425 14th Street Portions: Large
Traditional
Ultra thin crust
Floppy Inventive
Thicc & fluffy
Price: $$$
Sweet / tangy sauce
Savory / herby sauce
Long slices of NY style pie that you have to fold and hold 9 feet from your face. Once you figure out how to get it in your mouth, your brain will explode.
Light, fresh cheese
Heavy, greasy cheese
Stiff Traditional
! ?
Floppy
2009 Matsui Alley Portions: Medium Price: $$
Stiff
JOINED SLICE VERTICES
Thicc & fluffy
Price: $$$
1
Portions: Large
Above: A slice of pizza being held by a person who likes pizza with pizza being eaten by people in the background who also like pizza.
Our internal studies have determined that pizza slices joined at the tips cause significant reduction in arousal momentum for those engaging in a mastication event of this substance. Not only does this cause delay as the consumer attempts to tear the slices apart along a (hopefully) perforated line, it can debond cheese from nearby slices which sends ingredient ratios into unintended ranges. The Pizza Consumers Union has recently issued a statement calling for the mandated lowering of restaurant butcher block tables by 12 inches to enable those cutting the pizza “to really lean over that pizza and get into it with the cutter” so no pies are sent out with joined slices.
Floppy Inventive
Dataphilia:
1
Majka Pizzeria & Bakery
1704 15th Street Portions: Medium
Price: $$
Have you ever eaten art? Because the cheese-to-sauce ratio of this pizza is a masterpiece! The canvas this work is painted on is a lovely crispy, thin crust.
Ultra thin crust
Thicc & fluffy
Sweet / tangy sauce
Savory / herby sauce
Light, fresh cheese
Heavy, greasy cheese
Stiff Traditional
Floppy Inventive
TO YOU, WHAT MATTERS MOST IN A GOOD PIZZA? How do you measure a good pizza? We gave our coworkers 12 points to distribute amongst qualities they value most in one and averaged them. Each quality maxes out at 5 points. Ingredient Ratios
n=8
1
Anonimo Pizza
400 12th Street
Portions: Smaller
Ultra thin crust
Thicc & fluffy
Price: $$$
Sweet / tangy sauce
Savory / herby sauce
Punching way above their weight for being the newest pizzeria in town, Their chewy, dense, thin crust and high quality cheeses are a knockout!
Light, fresh cheese
Heavy, greasy cheese
Stiff Traditional
Floppy Inventive
4.00
Cheese Quality
1.5
2.25
Crust Thickness
Ergonomics (foldability)
.75 2.00
Sauciness
2
0
Should’ve bought A mazon!…no, Google!…no, Tesla!…no, that NFT of a monkey smoking a cigar! MATT AXFORD
I S S U E 10
- DIRECTOR
SPRING 2022
Sacramento Real Estate Return on Capital in Scenario: ~564% over ten years Pros: Reliable returns which are generally better than the stock market. Backed up by a tangible asset.
WHICH SHOULD YOU INVEST IN?
STOCKS, CRYPTO, OR SAC REAL ESTATE? W
Cons: Upkeep and renovation costs; you have to actually do something instead of just buying and holding it for a while. Also, each asset is unique and therefore value increases will vary.
Where should you put your money and why? Legally I can’t tell you, but what I can do is present a comparison of the general market, Bitcoin, and good old-fashioned value-add real estate! So let’s say you have $100,000 to invest ten years ago in January 2012...
Investment Value
Bitcoin $904,761,480.08
$800K
Real Estate ~$664,000
$600K $400K $SPX
$200K 2012
$362,809.87
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$SPX (S&P 500 aka General Market)
Cryptocurrency (Bitcoin, in this case)
Return on Capital in Scenario: ~265% over ten years
Return on Capital in Scenario: ~9,050% over ten years
Pros: Reliable, steady increases in value over time. Passive investment with little to no upkeep cost. Fun to tell people you “have stake in such a huge part of the market.”
Pros: Insane returns for first-movers.
Cons: Lackluster returns compared to other investment types.
Cons: Your friends will grow tired of you preaching the word of crypto. Also, can you stomach these thermonuclear drops? June 11, a drop from $32 to $0.01. 2018: -84% drop. April 2013: -83% drop. 2020: -50% drop. March 2021: -51% drop.
Ahh, 2012. *sips gin & tonic* It’s been a few years since the infamous 2008 that not only ruined lives, but was also declared the International Year of the Potato by the U.N. (google it). With that context, let’s say you dropped $100,000 on 1/2/12 right at the open and let’s fast forward ten years to the first trading day of 2022 - 1/3/22. Those 79 shares of $SPX you bought at $99,449.94 are now worth $362,809.87. Congratulations, Moneybags, you can now buy 221,225 king sized Payday Bars!
When we repeat that same scenario, 100K of frogskins would get you $18,975.33 Bitcoins at a fill of $5.27 in 2012. Slamming the lever on our time machine and moving forward to Jan 1, 2022, those enigmatic coins are now worth $904,761,480.08. Hooray, you’re now equal to 0.48% of Jeff Bezos and could probably get a hospital wing or university hall named after you! You’re probably wondering why anyone would even bother looking at other investments.
Again for the sake of argument, let’s say it’s 2012 and the world didn’t end like that Mayan calendar said it would. You take $100,000 and apply for a loan which allows you to buy a fourplex for $432,000. You move into one of the units and begin systematically remodeling the others, one-by-one. Good ol’ elbow-grease-and-sweat equity. Three years later in 2015, property values had risen and you have a fully remodeled multifamily building. Accounting for improvements and initial value, you can now flip the property for $520,000, an $88,000 gain on the initial $100,000. With that $188,000 you repeat the process with an $800,000 eightplex. At the end of three years, another 88% growth puts your initial investment at around $353,000. Do it again, now with a $1.5 million property, and you’re looking at $664,000 at about ten years in - not bad! At this point, the property values you can get involved with increase exponentially. Sure, the returns don’t look like those of early Bitcoin investors, but it’s also way less risky. Property is tangible and inherently less prone to the absurd fluctuations crypto and the stock market can see. Contrast that with our friend Jerome Powell’s ability to sink the market if he buttons his jacket incorrectly. And you can pretty conveniently and affordably insure property. Try to buy insurance for Bitcoin or the S&P. And if your response is “but what about Delta neutral dynamic hedging?” you’re probably reading this article on a Bloomberg Terminal and you should go back to using the POSH function to browse for used Patek Philippes (I’m contractually obligated to make one finance geek joke per issue of GRID). Lastly there’s something romantic about being a property owner. Watching the setting sun as you drive down the street and looking over at a towering structure and saying “I own that!” And that certainly beats constantly explaining what the heck a Bitcoin is.
916.573.3300 turtoncom.com Whether you’re a building looking for that special someone, a tenant looking for that special some-place, or an investor just looking for a quick 1031 exchange, Turton can help.
Your Property Matchmaker BUILDINGS YOU’VE LIKED NEW MATCHES
2620 J, For Sale Victorian office
1221 H, For Sale Small office
CH MAT
2131 Capitol
2715 K
Ice Blocks
411 18th
MESSAGES
2715 K I’ve got some space that needs filling...
2715 K, For Lease Small Mid-mod Office Built 1943; renovated 2022 2,024 square feet
1800 27th, For Lease Modern industrial space
2715
Small mK, For Lea se id-mod office
700 L Don’t msg back unless 60+ employees...
Ice Blocks Can you even afford me?
Even though I’m small, I’m under-filled by my current tenant and am looking for someone bigger to achieve my highest and best use. Fresh interior paint job. No players. I will block and report if you send me pics of
1530 J Down to tour or nah?
MARRS
J STREET PORTFOLIO FIVE ADJACENT MIDTOWN PARCELS FOR SALE - $8M T U R T O N C O M M E R C I A L - 9 1 6.5 7 3.3 3 0 0 - T U R T O N C O M.C O M
JS
TR
EE
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26TH STREET
2
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We love art for more than just the feelings of intellectual superiority when we display challenging pieces in the foyer! I S S U E 10
BROOKE BUTLER - VP - OPERATIONS & MARKETING
GETTING TO KNOW
CONTINUED FROM PAGE 08
OUR LOCAL ARTISTS W
Why do you support local art? For the rad vibes? To invest in the continued cultural development of Sacramento? Or is it because involving yourself with local art gives the outward appearance that you’re a super cool insider among the notoriously intellectual art community? In our office it’s all of the above!
Darby Madden Gross
Medium: Acrylic, mixed media, and found objects
1 Where do you find inspiration? I find inspiration from the concept of bettering myself, from understanding the memories from my childhood, from objects I have collected through the years, and from the general ideas that I believe strongly in, such as “war will not always exist.” Recently I have found a great deal of inspiration from documenting the intense feelings or phrases I go through on a daily basis and after revisiting them I can construct a painting from there.
2 How does your art integrate with our community? My art directly and physically integrates with the community through gallery walls. In my heart, I feel like meeting other artists and talking “shop” with them, is how I feel most connected to this community. Conceptually, we are here together (including non-artists). We are all a part of a community of artists and non-artists.
SPRING 2022
3 What do you love about Sac? It’s a big city in a small city’s body. I love the grungy yet peaceful, tree-lined, grid that lets you walk or skate anywhere; it’s the capital of California; it’s the birthplace of my beautiful wife; it’s home to vibrant energy that will spark when struck (as we did during the BLM Movement); I love the way the city is built over itself because of floods so there are old businesses under the city; I love the trains, the people, the artists, musicians, the gold bridge, the moose tower building, and on a more personal note, this is where I found my voice as an artist.
4. IN THIS HOUSE: A) The ‘90s are alive, baby! (+20) B) Sports Center STAYS on. (-35) C) We believe lifted trucks deserve voting rights! (-50) D) We’ve got some local art, houseplants, and some kombucha fermenting on the shelf. (+40) CONTINUED ON PAGE 31
WHAT VALUE DOES ART BRING TO A CITY?
“The impact of art is much deeper than I understand, but I do know that when I see a city or an individual that is thriving, they often have an abundant relationship with art. I think that is because it gives anyone walking by access to its transcendence, no matter who they are or what kind of day they are having.”
- Brianne Chaney Local Artist - @briannechaney
4 What’s your favorite piece of art in Sacramento (that’s not your own)? Stone Cold Steve Austin piece by Hus @huslightyear (I own it). Upcoming Shows: Old Soul in the Alley - April 2022 Burb Contemporary - May 2022 VISIT
HIS I N S TA
@Darby
Madden
GRAM
Gross
FOR U P M A N YD A T E S O N EXHI UPCOMIN HIS BITIO G NS!
2
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THE SACRAMENTO ART SCENE
COOL SACRAMENTO MURALS WO R T H VA I N LY P H OTO G R A P H I N G YO U R S E L F I N F R O N T O F !
Need to self-gratify by posting photos of yourself with trendy art online? Lucky for you, Sac has plenty of murals perfect for the Zuckerberg-owned platforms!
A QUESTION FOR OUR CO-WORKERS!
Percentage of respondents
Roughly how many pieces of local art do you own?
n=10
50% 40% 30% 20%
Tyson Anthony Roberts 1719 34th Street
Paige Maureen 509 12th Street
Elle-Vexta Collab. 1730 12th Street
Maren Conrad 918 19th Street
Show people you visit East Sac and are therefore bougie!
Moody and organic triptych that’ll make you look earthy!
Rad abstract background with pastel goth vibes!
Blow on the dandelion, just like everyone else!
10% 0%
0-2
3-5
6-9
10+
VISIT
S TA HIS IN
theartist
@jupiter
Jupiter The Artist
Medium: Acrylic
1 Where do you find inspiration? Conversations, people, movies, and nature. I mostly find inspiration through conversations with my close friends, like Faith, N’Gina, Kevin, Elise, Amadeu, and others.
2 How does your art integrate with our community? It integrates with the community by offering them new perspectives outside of the standard American way of thinking.
3 What do you love about Sac? I love the down home big city feel of this place. I also love that there are so many great artists out here. Sacramento is an artist’s city!
4 What’s your favorite piece of art in Sacramento (that’s not your own)? Subtile by Frederico Díaz. Upcoming Residencies: Bulgaria - September 2022. Greece - October 2022.
GRAM
T THE E WHA TO SE NT HYPE IS RECE ABOUT! ALL
TURTON turtoncom.com | 916.573.3300
Pictured: 2421 17th - 4,000 SF
C R E ATI V E O F F I CE SPACES FOR LEASE: The Hardin.......................1,035 SF 1614 19 th ....................240-1,603 SF 411 18 th ............................2,080 SF 1415 21 st ...........................2,200 SF
1414 K.....................1,556-2,244 SF The Cannery.............1,885-2,647 SF The Elliot Building.............6,314 SF 920 20 th ...................3,000-6,493 SF
O1 Lofts............................6,823 SF MARRS...................2,101-15,366 SF 1919 19 th ........................18,650 SF The Park................5,000-21,824 SF
Dine. Self-Care. Style. @ Ice ONLY ONE SUITE LEFT! 416 SF AVAILABLE
TURTONCOM.COM 916.573.3300
R STREET & 16TH - 18TH STREET SACRAMENTO, CA
2
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THE SACRAMENTO ART SCENE
Haley Titus
Medium: Acrylic on raw canvas
1 Where do you find inspiration? I love looking for unrefined shapes and patterns found in nature. It could be a shape found in tree bark or finding a unique pattern on a leaf.
I like to bring a spirit of shiny happiness through bold color and messaging in my outdoors murals. I often open my studio in Downtown to the public, to see my large-scale work in person.
3 What do you love about Sac? Being close to the Yuba & Sacramento River is my favorite part of living here. It’s also great for my art because it allows me to collect rocks which I grind into pigments for my paintings.
4 What’s your favorite piece of art in Sacramento (that’s not your own)? Fuller Poles 16th & Q st. by Saul Bass. I love the sheer height and color in the piece. Saul Bass is a powerhouse in the world of graphic design, I’m just excited he made a piece for our city. Upcoming Show: Art Show at Rytina Fine Cleaners - 630 Fulton Ave
Surprising relationships you needed a venn diagram to notice!
People from LA and SF are impressed by how many there are
l rcia me ers om rok al c te b Loc l esta rea
s
Only as successful as their networking skills rtis t
FEED OUR S E Y E L A X E DS ! O D TO ITH R BE T VI W RAC ABST
oa
udio
itus.st
yt @hale
2 How does your art integrate with our community?
ent
R T HE
RAM
Sac ram
VISI
AG INST
Creatures adept at occupying urban spaces
Local squirrels
Suspiciously friendly and quite annoying to some - will likely eat out of your hand
2
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THE SACRAMENTO ART SCENE
Laurelin Gilmore
Medium: Oil on canvas [primarily]
MUST-SEE ART GALLERIES IN MIDTOWN / DOWNTOWN! 1 Where do you find inspiration? Everywhere! Music, poetry, cinematography, storytelling in all its forms. My touchstone has always been the human form, but the place of humans in the natural world is my continued inspiration.
2 How does your art integrate with our community? I hope to remind people of their connection to the natural world, that we are inseparable from our environment. It can be difficult to find untouched natural environments in a city, but Sacramento is also the City of Trees and the City of Twin Rivers. When we spend time in nature we are reminded of how essential a healthy environment is to our own quality of life.
3 What do you love about Sac? I love the diversity of Sacramento, that it is a hub of so many different cultures. That’s reflected in the art and music scenes, both of which are very collaborative. By that I mean a lot of the artists and musicians in Sacramento know and show or work together.
4 What’s your favorite piece of art in Sacramento (that’s not your own)? There are a lot. At the moment I’m loving the murals on the 12th Street corridor created by the Trust Your Struggle Collective. Upcoming Exhibit: Sac Open Studios - Verge Center for the Arts - Sept 2022
WHAT VALUE DO MURALS BRING TO SAC?
It gives [artists] the opportunity to be recognized, appreciated, and paid - not just locally but internationally. Wide Open Walls has given over 50 local artists their first opportunity to paint a mural. Outdoor Art creates landmarks, gathering places, and community pride.”
- David Sobon CEO / Founder, Wide Open Walls
How do you, a non-artist, involve yourself with the local art scene? Aside from dating an up-and-coming muralist, first step is visiting galleries and offering fawning praise to everyone! Elliott Fouts Gallery Kennedy Gallery Twisted Track Gallery ARTHOUSE Groundswell
1831 P Street 1931 L Street 12th & R Street 1021 R Street 2508 J Street
Sol Collective Sparrow Gallery 1810 Gallery Crocker Art Museum Verge Center for the Arts
2574 21st Street 1021 R Street 215 14th Street 216 O Street 625 S Street CH LOV E E C K OU T H LY B O OKST ER ORE!
@laure @amato lingilmoreartis t ria_fine _art_bo oks FOR A LECT N AMAZIN D E S I GI O N O F A R G C O L T AN N L LO C A I T E R AT U R D T E! 19TH ED ON & F!
YOUR WORKDAY DESERVES
MI DTOW N TURTON
A HIDDEN th 9 GEM 1 919 1
SCAN
FOR
PROPERTY
TURTONCOM.COM 916.573.3300
LOCATED ON THE R STREET CORRIDOR OWNER - USER / INVESTMENT OPPORTUNITY $5,900,000
18,650 SF
3
1
If accidentally read, induce vomiting and contact TCRE immediately! I S S U E 10
JON LANG - SENIOR VICE PRESIDENT
SPRING 2022
LEGALESE WITH LANG:
TITLE REPORTS 101! Y
You may be on the cusp of reading the most enthralling magazine article of your life. Yes! What would it be other than a guide on how to understand a title report? You know it’s important but, why? Surprisingly, most buyers have no clue. If this is you, spread thy cerebral hemispheres and prepare to receive some learnin’!
What even is “title?” Title is your legal right to own a specific property, including the right to use and sell that property at your discretion. However, not all title is created equal. Your title can be unrestricted and absolute, but it can also be limited. What kinds of things can affect my Title to property? Title is easily affected, often by known issues such as liens, covenants (CC&Rs), judgments, encumbrances, and restrictions, which we’ll call “defects” to title. However, title can also be affected by issues unknown to the owner, such as unrecorded easements, outstanding lawsuits, or liens filed by third parties. Together, these issues can limit your ownership rights or even altogether inhibit the sale of the property. How can the title impact my ability to sell my property? “Clear” title is required to sell real property, which means that the property is free of recorded (i.e. known) and unrecorded (i.e. unknown) defects, and the seller can convey the property to the buyer without third-party claims to the title. What is title insurance and why do I need it? So, in order ensure that the buyer is receiving clear title at the time of conveyance, the buyer is issued title insurance at the close of escrow, which protects the owner from financial loss sustained from defects in a title to the property. Unlike traditional insurance, which protects against future events, title insurance protects against past occurrences that can still affect your title in property currently.
What is a preliminary title report? Prior to issuing the title insurance policy, though, the insurance company, working through the escrow company, will issue an offer to insure your title. The offer will contain the terms and conditions to the policy before the transfer occurs. That “offer” is your preliminary title report. The preliminary title report shows ownership to the property, a chain of title, and known defects to title prior to conveyance. What are exceptions to title? The preliminary title report lists the recorded defects as “exceptions” to the insurance policy, which means that the insurance will not insure issues relating to these known defects at time of sale. However, the buyer can work to remove some or all these non-standard exceptions from the title report prior to the transfer of title, which would limit the number of non-insurable defects in title. What should I look for in a preliminary title report? First, the extent of your rights in the property, including the ownership interest, property description, and chain of title. Most importantly, though, focus on the defects in title, shown as the “exceptions” on the report, which at the time of issuance, will not be covered by title insurance moving forward. Therefore, work with your agent and escrow officer to clear unwanted exceptions from the title report, thereby taking full advantage of the coverage of the title insurance policy. Is it true you have a really cute dog? It’s true. Her name is Ladybug (Buggy for short) and she’s a Shih Tzu.
Unabashed self-plug: Jon Lang is a licensed broker and attorney in the State of California. Jon specializes in complex and complicated commercial real estate transactions, including those with significant defects in title, partnership disputes, and environmental contamination. He also handles easy transactions, too.
Above: You don’t wanna find yourself stumped by a tough lot line issue after closing! Review your title report during escrow to understand your property and the encumbrances. Left: Buggy may be the cutest dog this side of the Rockies, although we’re highly biased in our office... TITLE REPORT
y!
Vocabular
Quizzes might be administered later!
1) Encumbrances A claim against a property by a party that is not the owner 2) Chain of Title Historical record of ownership transfers of a specific property 3) Conveyance Legal process of transferring property from one owner to another
4) Escrow Officer Neutral third-party that facilitates a real estate transaction between buyer, seller, lender, and title insurance company.
CONTINUED FROM PAGE 23
5. YOU SHOW UP TO THE PARTY WITH: A) A six-pack of Track 7 and a J. (+20) B) Either type of keyboard. (+20) C) A 2-liter bottle of Pepsi, an e-cig, and a kid. (-30) CONTINUED ON PAGE 33
TURTONCOM.COM | 916.573.3300
1817 CAPITOL AVE: LEASE & SALE
NS A I R O V ICT R O E L A FOR S L EASE
2620 J ST: FOR SALE
2009 N ST: FOR SALE
2311-2319 CAPITOL AVE: FOR SALE
2011 P ST: FOR SALE
2511 & 2517 O ST: FOR SALE
3
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“I daresay, Carlisle, the Everett’s mansion across the boulevard has si x porch columns and makes our measly four columns look...poor.” I S S U E 10
DAVID KHEDRY - DIRECTOR
SPRING 2022
Victorian Buildings MY LOVE FOR MIDTOWN’S
“Old,” some people call them. Well, “appreciate the classics,” I say! Victorians are the most distinguishing architectural aspect of Midtown and my absolute favorite buildings to tour!
Notoriously insecure and status-coscious, Victorian America invested heavily in their homes as a display of their success and education level. It was highly important that one’s home be up to date with the current fashionable design trend, and as such, numerous sub-categories of Victorian architectural styles developed over time before eventually losing favor during the Arts and Crafts Movement of the 1960s. Because of the wide number of styles, “Victorian” refers to everything from the ornate, assymetrical Queen Anne’s of Boulevard Park to the boxy Italianate-style building occupied by the Vizcaya Event Venue on 21st Street. Most would claim the heyday of Victorian architecture in America took place between 1830 and 1910, but the style achieved popularity in Sacramento from 1880 to 1930. This is largely because industrialized milling and woodworking processes made the ornate detailing more accessible to the average middle class family by the late 1800s, and Sacramento boasted a strong middle class. As a result, most of the Victorian buildings in Midtown are actually Folk Victorians, which are a mish-mash of all the styles with toned down features like less elaborate bargeboarding, smaller porches, and less square-footage. It’s a Midtown riteof-passage to rent a unit in one!
In recent years, the style has become popular with commercial office and retail tenants, but building regulations and costs means properties like these don’t get built anymore. Because of the widespread appeal of Victorian buildings and their finite number, they command a higher price point than other spaces of comparable size and condition. So, although their relative rarity bums me out, it also increases value for their owners, which is something I can always appreciate. And beyond the storied history or investment potential of Victorian buildings, they’re just plain beautiful! To me, the gingerbread patterns, cylindircal towers, and steep-pitched roofs are largely what gives Midtown it’s charm... but maybe I’m biased because so many of my listings are Victorians.
A GREAT EXAMPLE OF
ffice SmallrO n Victo ia s!
2620 J STREET
Some of the most sought-after spaces by office tenants are Victorians in Midtown Sac and, luckily for us, we list a lot of them for sale or lease! Pictured here is an office currently for sale, 2620 J Street, flanked by a stunning single-family Queen Anne on the left and a late-era office quadplex on the right.
QUIZ CONTINUED FROM PAGE 31
6. YOU LIKE IT WHEN YOUR NEIGHBORS: A) Decorate for holidays. (+5) B) Leave baskets of home-grown citrus by the sidewalk. (+15) C) Are economically and culturally diverse. (+50) D) Live in houses with identical floorplans as yours. (-40)
2 0 11 - 2 0 17 I STREET CHECK OUT THE
f Diverse usans!ge o Victoria What I love about Midtown is the willingness to use a Victorian building for just about any purpose. Here, near Old Soul Coffee and Pachamama Coffee Coop, three buildings in a row all fill different roles to the city. The ornate earth-toned one on the left serves as
office space and a recording studio and sits pretty beside it’s Colonial Revival duplex neighbor. On the right is a mixed-use Folk Victorian with a retail addition – a popular strategy in Sac. This kind of use diversity is what makes Midtown great!
QUIZ CONTINUED ON PAGE 40
Above: Midtown is full of Victorians like this gorgeous Queen Anne with a traditional paint scheme on 24th and Capitol.
TAP INTO THE VIBE THE ELLIOTT BUILDING @ 16TH & J 2ND GEN RESTAURANT AND OFFICE FOR LEASE TURTONCOM.COM 916.573.3300
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In the city ofis Adaptability Trees, a sign it of ’s easy strength! to find a cool part of town! I ISSSSUUEE 10 9
J A CSKC OS TCTU RK FI NI EGLSDT O- ND -I RSEECNTIOORR V I C E P R E S I D E N T
S PF RA LI NL G2 02 21 022
DO RESTAURANTS STILL NEED
SO MUCH SQUARE-FOOTAGE?
THE FUTURE OF SACRAMENTO’S
LARGE RESTAURANT SPACES N
Now that the norms and preferences of consumers are changing, large restaurants in Downtown Sacramento may want to reconsider their strategy moving forward.
Biba Restaurant. Ambrosia Cafe. Pizza Rock. A moment of silence for our fallen brethren... . . Some of our favorite Sacramento restaurants weren’t able to make it through the pressures of the pandemic. Industry experts predicted that national chain restaurant groups would fill the void left by these local closures. Thankfully to some (but not landlords who lost tenants), that did not materialize, as is evident by the absence of Burger Kings and Wendy’s restaurants on K Street. In fact, chains with beefy credit aren’t necessarily immune to stress either - P.F. Changs and Claim Jumper also closed recently. On the bright side, most of the restaurant spaces left vacant during the pandemic have since been filled with cool new concepts. Plant Power Fast Food, Good News Wine, Sunny Side Restaurant, and Voluptuary Wine are just
some of the exceptional new tenants we’ve been able to place in recently-vacated spaces. The ones that are sitting, gathering dust? The BIG units. By big I mean 6,000 to 8,500 SF. The risk of having to bear the rent and operating costs of a large space through another national crisis is too high for most prospective restaurateurs. Operators in smaller spaces seem to be able to react more nimbly and have less overhead to shoulder, but large-footprint restaurants obviously don’t benefit from that dynamic. And we’re likely to see even more large restaurant spaces hit the market over the next 6 to 12 months. This is because landlords in Downtown, who’ve worked in good faith alongside tenants for the last two years to restructure lease agreements, have largely reached the end of the road with favorable lease terms. Coupled with the drying up of cash in the
How have restaurants changed in the last two years? Operators have been focused on controlling real estate costs and emphasizing the ability to generate revenue outside of the four walls of their physical space as a hedge against future closures. This is focused on generating multiple revenue sources. We’re seeing: Larger patios for outdoor dining Expanding of catering services for corporate and private events Higher usage of food delivery services (DoorDash, Uber Eats, GrubHub, etc.) Walk-up windows for late-night service being built Trying out new food concepts to draw in different customers
Restaurant Revitalization Fund and Paycheck Protection Program, we may be seeing lots of new opportunities for prospective food and beverage operators, soon.
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THE FUTURE OF SACRAMENTO’S LARGE RESTAURANT SPACES
With so much competition in the real estate marketplace for the few restaurant tenants and operators looking, what are some creative solutions that both landlords and tenants can employ with large restaurant spaces?
1 Shared spaces Some of the larger spaces are conducive to more than one concept. We can see two or more operators teaming up to provide a mini public-market type experience. They share the same kitchen and kitchen staff, but have multiple concepts in different parts of the space. This may appeal to families or groups that have varying culinary desires!
2 Ghost kitchens Ghost kitchens are physical spaces for operators to create food for off-premises consumption. On apps like DoorDash and Uber Eats, listings for restaurants operating out of ghost kitchens usually don’t look any different than those for brick-and-mortar operations. Some of these larger spaces (with very large kitchens) on the market could temporarily become ghost kitchens to serve the growing food delivery demand in Sacramento. Further, one trend we might see is the formation of central, commissary-style ghost kitchens with multiple restaurants or brands working out of the same physical space.
Left: The Bank - one building with multiple food and beverage operators. Middle: R15 and Cafe Bernardo, although owned by the same restaurant group, are significantly different food and drink tenants which share the same space. Top right: Good News Wine at the MARRS Building leans heavily into the bodega concept while being predominantly a wine bar. Bottom right: 6415 Elvas Ave is being outfitted with 11 ghost kitchens for food delivery services such as Uber Eats and DoorDash.
3 Percentage rent only deals Many restaurant leases are structured one of two ways - either the tenant just pays the landlord an agreed upon rent, or they pay the landlord an agreed upon rent plus a percentage of sales past a certain gross revenue (which is very common in shopping malls where tenants benefit from co-tenancy). During the pandemic, we have restructured a number of restaurant leases to be just percentage rent, and this may be a medium term solution for new leases, not just existing leases, to get spaces leased and revenue generated for both landlord and tenant. If the tenant wins, the landlord wins too.
4 Time-based space utilization Depending on the long term demand for larger restaurant spaces, it is possible we will see more dynamic and varied use of these spaces. From private events, corporate trainings, high school proms and ticketed events for live music or comedy, restaurants may convert more into flexible entertaining spaces in the future.
5 Heavy retail focus To utilize larger spaces to their full potential, we see converting some of the floor space of large restaurants to retail to support the restaurant. These retail areas may sell curated goods, togo food, wine, beer and spirits or other items that create an experience customers want to keep coming back to.
While it seems like there may be long term uncertainty about restaurant spaces, one thing is clear: people love gathering and dining out. And from a restaurateur’s point of view - now is the time to strike. Never have there been so many second generation restaurant spaces available in urban Sacramento - and in some of the City’s most iconic buildings. There are millions of dollars poured into each space, and opportunity abound. Reach out to us if you’re kicking around a concept for one of these incredible restaurant spaces - we love creative ideas!
a Menu 2nd generation RESTA
URANT SPACE
pizza
1020 K................$3.00/SF
coffee and deli
1020 16TH............ $3.00/SF 990 SF FORMER SANDWICH SHOP 1,892 SF FORMER IN-LINE STARBUCKS
1030 K............... $3.00/SF COFFEE SHOP / CAFE SPACE ON K ST 1,830-2,965 SF NEXT TO STATE CAPITOL
F
STREET FACING EXHIBITION OVEN 5,600 SF NEAR GOLDEN 1 CENTER
1627 16TH............ $3.00/SF HIGH TRAFFIC COUNTS ON 16TH STREET 6,000 SF ACROSS FROM FREMONT PARK
american 1801 L.................$3.50/SF PRIME HANDLE DISTRICT LOCATION 2,891 SF CORNER SPACE WITH PATIO
1111 J.................. $3.00/SF FORMER CLAIM JUMPER LOCATION 8,500 SF RESTAURANT / EVENT SPACE
international 1530 J................ $3.00/SF FORMER PF CHANGS AT 16TH & J 6,000 SF BY MEMORIAL AUDITORIUM
2131 Capitol Ave #100 Sacramento, CA 95816 turtoncom.com | 916.573.3300 *6% gratuity on all transactions
1000 K............... $3.00/SF HIGH-END TURN-KEY NEAR CAPITOL 7,739 SF RESTAURANT + EVENT SPACE
MARINA DEVELOPMENT 201 BRANNAN ISLAND
$849,000
FERRY ROAD
$500,000
8140 FREEPORT BLVD
$1,450,000
ADJACENT
TURTON COMMERCIAL - TURTONCOM.COM - 916.573.3300
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STILL a better love stor y than Twilight! JACK SCURFIELD - DIRECTOR
I S S U E 10 SPRING 2022
BIRD’S EYE VIEW
A DAY IN THE LIFE OF A RIDESHARE SCOOTER They’re here, they’re frequently used, and you probably have an opinion about them. Whether you’re a fan or a hater, rideshare scooters like Bird, Spin, JUMP, and so on are here to stay and should be viewed as a local transportation amenity. Still a little unsure about them? View our Timeline of a Scooter’s Day so you can see how these cute little fellas integrate with our lively city! siness! Risky Bu
Less-than-recommended scooter endeavors
Riding on the sidewalk
Medium Safety Risk!
Attempting jumps or curb-hops with these heavy bastards
High Safety Risk!
Riding the scooter inside of buildings
High Safety Risk!
Ditching your scooter laying down in the street or sidewalk
Minor Safety Risk!
Call an Doing a triple-decker with three ambulance riders at once in advance!
Collective distance traveled:
5:15 AM
I awake in a daze from a wild night of riders. My “juicer” is recharging me in the back of a cargo van. My friends are all here.
5:35 AM
I’m dropped off beside the hipster-lined ingress/egress of Temple Coffee. This may be the only time today my kickstand is used.
5:52 AM
My first rider comes wrapped in a tightly-fitted suit. Must be in politics - Midtown hasn’t seen a non-ironic necktie since 2005. We speed off toward Downtown.
6:01 AM
I am angrily ditched beneath an orange tree in Capitol Park after my rider discovers the scooter speed is limited here. I chirp an apology as he hustles to his lobbyist meeting.
8:10 AM
After two hours in the handlebar plank position, a friendly lady in teal scrubs reorients me and we ride past the new Convention Center. I remark on how much Sac has changed.
9:55 AM
A while after being left in front of the Kaiser building, a welder working on one of the many nearby developments picks me up for an early lunch run. He diligently wipes down my handles with disinfecting wipes.
10:13 AM
The food truck I have been piloted to is very busy. My rider forgets to hold my reservation and I’m swiped by an eccentric, paint-splattered young man. As we depart, I see the welder scratching his head in confusion.
10:22 AM
The young man drives me to an alley, hops off, and resumes painting an abstract mural while eating a burrito with his non-dominant hand. I rejoice that my view is only partially blocked by a dumpster.
10:49 AM
An armada of bicycle-mounted art dorks rolls through with the Wide Open Walls bike tour. One of the couples riding a tandem bike gets into an argument and breaks up right there, in front of the mural. The man rides off and everyone tells the woman she can do better. Then, she reserves me.
11:07 AM
En route to the next mural, I find my ego inflating as the bikes struggle to keep up. However, my rider, seemingly immune to this thrill, parks me and ends the ride. She says she needs to go for a walk.
11:58 PM
The Friday lunch rush begins. Soon, someone is desperate enough to walk all the way down the alley to get me - a rotund, middle-aged man in cargo shorts. I heave under his weight but don’t slow down.
12:18 PM
We stop at Kasbah. As my rider leaves, his belt-mounted State Worker ID badge catches my handlebar and I am yanked over. He shrugs and ambles away. I lay on the sidewalk and marvel at the tree canopy.
My memories here are a blur of back-to-back bookings through the lunch hour and early afternoon including: 8 trips back and forth between the Handle District and Lavender Heights, winning a scooter race from LowBrau to R Street, and a rewarding double-booking which had to be resolved by corporate. 4:39 PM
My next rider is apparently late to meet her friends at Concerts in the Park. We weave between pedestrians on the sidewalk at full pace - something I am not comfortable doing but corporate allows it.
5:07 PM
The crowd at Cesar Chavez Park is dense and rowdy. I am lifted from the plaza floor and carried over the heads of several concert-goers. I am crowd-surfed to the front of the stage where a security guard places me facing the audience. I am now blocked from any potential new riders.
5:49 PM
Worse places to be stuck, I guess. Hey, I recognize some familiar faces in the audience! The welder stranded 1.5 miles from his job site and the lady from the art tour seem to have just met at the concert...
9:29 PM
The show ends and the Concerts in the Park crowd is dispersed. I sit at a feeble 7% battery against the stage. As I lay worrying my evening was wasted being inaccessible to riders, I get what will be my final booking of the night.
9:52 PM
After providing a highly-rewarding tandem ride to the welder and the art tour lady, my battery is ready to die. They embrace romantically and head toward the apartment lobby door. Before going in, the man turns to me and privately whispers, “That’ll do, dear steed. That’ll do.” Everything fades.
12:45 AM
Back in the cargo van. Everyone’s here but Robin. Someone grumbles that he was carried down to the river and his battery removed. I sigh and prepare for another day of providing last-mile transit to Sacramentans.
3,540,523 miles SAC RIDESHARE S TAT S !
Total number of trips:
2,480,012
Average distance per trip:
1.563 miles
Data collected since June 2019. Source: City of Sacramento GIS & Public Works
Top left: Jack crossing the finish line first in a race we let him win. Top right: How to dramatically decrease the lifespan of your landlord’s flooring. Bottom right: A flock of Birds Jumps.
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Just make it good and you don’t have to re- do it! I S S U E 10
KEN TURTON - PRESIDENT
SPRING 2022
SAVE MONEY IN THE LONG RUN WITH
MULTI-GEN TENANT IMPROVEMENTS I
Instead of giving tenants a totally customized office build-out that will likely be demolished after they vacate, be smart! Designing a space with improvements and finishes that are reusable from one tenant to the next is wise and can make an office landlord’s life much easier.
Recently, it’s become common for commercial office investors to develop a severe case of “As-is Envy.” Typical symptoms include jealousy, annoyance, feelings of inferiority, and, ultimately, chronic anguish as they watch their peers lease spaces to tenants without having to make expensive improvements to the units. Industrial, retail, and apartment tenants are comparatively easy to satisfy and usually willing to lease space in its current condition or complete their own improvements. Office tenants, on the other hand, have historically been higher maintenance. Some tenants want a couple offices; others want a dozen. Most want expensive finishes like glass-walled conference rooms, granite counters, Bosch dishwashers, etc. Office land-
“EASY” VACANT SPACE JUNE 2020
lords are beginning to hyperventilate just reading this! It is usually upon receipt of the construction bids that symptoms of As-is Envy peak. That’s because doing improvements like these can cost owners up to $100 per SF - all just to re-lease a space. And many leases are as short as five years, after which the landlord will need to do it all over again. Fortunately, there is a cure for As-Is Envy: Strategically-designed, speculative, generic office space. What I mean by that is, spaces that are adaptable enough to be left alone in between tenants. If a landlord can build a speculative office space that is multi-generational, it can save them thousands - even hundreds of thousands - of dollars in future capital improvement costs. Say
goodbye to As-is Envy! What do these office spaces look like? Typical features include smooth white walls, polished concrete flooring, exposed beams and ductwork, modern LED light fixtures, high-end appliances, and well-located electrical plugs. The most adaptable multi-gen spaces have one office per 1,000 SF, a conference room, break room, and exposed open space for workstations. Private offices with glass walls and some drought tolerant outdoor landscaping will go a long way! Many office building owners (including me) are now designing spaces this way. And if you’re buying a new building, target properties with relatively narrow bay depths that can be demised easily into 2,000 – 4,000 SF spaces. We foresee demand for these spaces to remain strong for the coming decade or longer. So, are you an office landlord with Asis Envy? Want a better idea of what I’m talking about and how it can improve your long-term balance sheet? Are you in dire need of a free latte from Temple Coffee? Let’s tour some spaces!
OCCUPIED SPACE FEBRUARY 2021
CONTINUED FROM PAGE 33
7. TO IMPRESS FRIENDS, YOU: A) Get the full stein. (+20) B) Host a charcuterie party. (+20) C) Invite them to see Proclivity For Kiting at The Sofia. (+20) D) Modify your vehicle to be louder than necessary. (-40) QUIZ FINISHED ON PAGE 43
Left: Improvements at 2409 L that have attracted multiple tenants over the last 7 years! Top right: Attractive finishes at 411 18th - currently for lease. Below that: Exposed beams, polished concrete floors at Ice Blocks - need we say more?
3521 & 3523 J STREET EAST SACRAMENTO 7 LUXURY UNITS FOR SALE turton commercial real estate - 916.573.3300 - turtoncom.com
IONE, CA 401 WATERMAN 8.79 ACRES IN CONTRACT AVAILABLE PROPERTIES
DOWNTOWN, SACRAMENTO 701 DOS RIOS 4.17 ACRES IN CONTRACT
o d t ’ n o d e W . . . s e hom tire n e l l we se family e l g sin . s n o i s i v i subd
BROADWAY CORRIDOR, SACRAMENTO 2601 5TH 2.27 ACRES IN CONTRACT
ELK GROVE, CA 9350 BOND 4.38 ACRES IN CONTRACT
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We don’t care what you do, as long as you do it in Midtown! I S S U E 10
KIMIO BAZETT - DIRECTOR
SPRING 2022
“We can’t afford fancy city food”
“Rent Downtown is so much higher” “They designed the streets to punish us”
“If you walk little Timmy through Midtown, he’ll be dyeing his hair and smoking cigarettes once we get home”
“People Downtown must starve since none of the restaurants have parking lots”
“No lawns? Must be a bad neighborhood”
SUBURBAN LEGENDS ABOUT URBAN SACRAMENTO!
L
Local suburbanites have certain stereotypes about the urban core of Sacramento - that being Midtown and Downtown. Let’s address these [sub]urban legends and explain how they may be misleading!
Myth #1:
Myth #2:
“Street parking is impossible and you’ll probably get a ticket if you find a spot”
“Sacramento is an urban hellscape with no nature or outside activities available”
I mean, if you are trying to park RIGHT in front of your destination, yes, you will have a difficult time. But normally, you should always be able to find a spot within two blocks of your destination in the Grid. And while a small amount of parking is lost to (much needed) construction, parking has never been easier. “Drivers can easily use one of the central city’s 6,500+ metered parking spaces using credit card, coins, and the ParkMobile app.” said Matt Eierman, City of Sacramento parking services manager. Eireman’s office also was pleased to announce that the last few “coin only” meters have gone extinct!
Simply not true! Sacramento has nutrient-rich soil that plants thrive in. Midtown’s streets are festooned with lush front yard plantings in the shade of huge elm and sycamore trees. Just outside of the city is the American River Bike Trail, a sprawling nature reserve with networks of cycling trails. And on the city side of the river, Tiscornia Beach and Sutter’s Landing provide river access. And by the way, we’re called the “City of Trees” for a reason. An ongoing survey of international cities by M.I.T. researchers found that Sacramento has among the densest tree canopies, beating out Seattle, Boston, Amsterdam and Paris.
QUIZ: HOW”MIDTOWN” ARE YOU?
CONTINUED FROM PAGE 40
8. SITTING IN YOUR CAR AT A 90-SECOND SUBURBAN STOPLIGHT, YOU DAYDREAM ABOUT: A) Getting a nicer car. (-10) B) Crafty ways to write things off as tax deductions. (-25) C) How zoning huge swathes of land for single family homes has destroyed American communities. (+35) D) Cats. (+20)
200+
Wow, you probably already live down here. If not, come to your people as soon as possible!
160-200
Urban living may require some adjustment, but nothing a stein at Der Biergarten won’t remedy!
<160
You may need to wean off the suburbs with a few years in East Sac, first.
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SUBURBAN LEGENDS ABOUT URBAN SACRAMENTO!
Myth #3:
Myth #6:
“Living on the Grid is uncomfortable because it’s super loud”
“It’s unsafe”
Perhaps this legend is true in some select locations such as adjacent to Business 80, but you’d be surprised by how relaxed and quiet the residential nooks of town are. The sound of nightlife does not even reach most of the living spaces on the Grid. And honestly? The ambient noise level right off of Hazel, Sunrise, or Laguna is even louder than down here!
Myth #4: “Downtown Sac is just a bunch of fit, good-looking, well-dressed people arguing over which coffee shop is more relevant” This one’s actually kind of true... At least for some of the population.
Myth #5: “Renting space is way more expensive in Midtown / Downtown” This is a common misconception even among people who live down here. It feels like urban centers should be significantly more expensive than outlying areas, but it’s not always the case! If we compare the average rental price per SF between Roseville and the Grid, we see that residential rents are actually higher in the suburbs - how surprising is that?! And for office space, the average price per SF is roughly 24% higher in urban Sacramento, which is not the dramatic difference you were probably expecting.
As far as urban centers are concerned, Sacramento is a totally safe city. In fact, the outlying communities of Natomas, Rancho Cordova, South Sac, and North Highlands all experience more crime - in particular violent crime than urban Sacramento. Yay?
Myth #7: “It’s not family / kid-friendly”
Myth #9: “Food is super expensive” Yes, we’ve definitely got our bougie options for the sophisticated palette (and the easily fleeced). That’s not all we’ve got, though - there are plenty of affordable options. What confuses me about this myth is that food in the suburbs isn’t known for being cheap. I mean, Jack-in-the-Box? Olive Garden? Denny’s? These places all cost $15 per person to feel full!
Even though we have things like $1 Jello Shot Thursdays at Badlands, it doesn’t mean Sac is unwelcoming of children. Mini golf! Ice skating! Train Museum! Movie theatres! ArtBeast! Myth #10: SMUD Planetarium! Parks with awe“It’s a boring cow town” some play structures! Take the kiddo To believe this, you must to Midtown for a day out! have never even passed Absolute worst case through Sac! This scenario, you have to “My kids love the last economic cycle explain something farmers market! I try to take them brought a wave of deabout the world to every other weekend; they really velopment through your kid and they like the French yogurt and the the urban core. The won’t grow up to be chow dog at the waffle stand.” food and coffee scene an overly-sheltered, is vibrant and compet- Michelle fearful suburbanite. Fair Oaks Resident itive. And the city is peppered with exciting urban events like house muMyth #8: sic street parties, art shows, and dai“Light rail is scary and not useful” ly farmers’ markets. But if that’s what makes a cow town, I’ll take it. Recent safety and cleanliness upgrades have made this legend a tale of the past. Light rail usage is steadily climbing and the demographic on board is overwhelmingly commuters from the suburbs heading toward Downtown offices. And we’d know - our team has used light rail a lot, lately!
Top left: Sorry, did you say “cow town?” I couldn’t hear you over the thumping beats and groovy basslines! Top middle: Even trendy / healthy food can be found for somewhat cheap - this meal at Magpie was under $18. Top right: The treelined streets of Midtown are remarkably serene. The other two pictures: Really though, Light Rail is pretty chill.
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TURTON
9591 Laguna Springs Drive Elk Grove, CA
T
LEASEMDENT! P RATE A C IN9.V9MEST % 1 - 6.9 TFOLIO -TENAN
SINGLE
$ POR ILDING 00 SF U B O TW G 17,5 TOTALIN
9585 Laguna Springs Drive Elk Grove, CA
SCAN FOR INFO
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Say hi next time you see him! (no promises of free pizza, though) I S S U E 10
JON LANG - SENIOR VICE PRESIDENT
AND NOW, A BRIEF CHAT WITH
MARVIN MALDONADO P
Professionally trained as an architect, Marvin Maldonado combined his passions for design, development, and food to build a restaurant structure made completely of repurposed shipping containers. Since 2014, he and his wife, Bridgette, have been slingin’ some of the city’s best pizza and local beers from the Federalist Public House in Midtown. He has some big plans for 2023!
SPRING 2022
Describe Midtown in a few words. Midtown is creative, funky, energetic, and walkable!
Hobbies outside of work? I mainly enjoy drawing, backpacking, and coaching my sons in sports.
Where do you see Sacramento in 10 years? Hmm, I see Sacramento as a national example of how to integrate boutique modern infill development within the existing infrastructure.
Next vacation spot? Looking like 54 miles on the John Muir Trail with wife and two oldest boys!
Best late night eats in the urban core? Ha! I’m in my 40s with three kids so “late” is relative. But Shady Lady is our go-to spot to drinks and food. Similarities between being an architect and restaurateur? Creativity. In both professions, you encounter challenges daily and creativity is crucial to solving them. Why are shipping containers a good building material? They’re the perfect cost-effective design solution. Plus, most lots in midtown are 40’ wide and containers are 40’ long so they fit perfectly.
All: Federalist Public House is located at 2009 Matsui Alley in Midtown. Look for the blue shipping containers, a parked Brew Bike, or follow the smell of sizzlin’ Neopolitan pizza next time you’re in the area!
Most rewarding thing about operating a small business? Engaging with and building up the community through food.
What are you biggest goals for 2022? I want to continue establishing Federalist Public House as a front-runner in the regional pizza scene. We want to be “must have” pizza when you come to Sac! What are the biggest lessons you learned during the pandemic? Faith, flexibility, adaptability, and a positive mindset. What is your favorite pizza? Margherita pizza with a simple salad. Do you love or hate the brew bike? We love the brew bike! Even when it’s 110 degrees out, we can count on three bikes a day with a lot of thirsty customers. Describe FPH’s alley location. “It’s like your first kiss. You work hard to get there or find it, but once you do, you never forget it!”
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If y ou ha ven’t hea rd of us, get wi th the ti mes ! I S S U E 10 SPRING 2022
Brokerage
Ken Turton
President Lic. 01219637
916.573.3300 | kenturton@turtoncom.com
Aaron Marchand
Senior Vice President Lic. 01711650
916.573.3305 | aaronmarchand@turtoncom.com
Jon Lang Esq.
Senior Vice President Lic. 01934934
916.573.3302 | jonlang@turtoncom.com
Scott Kingston
Senior Vice President Lic. 01485640
916.573.3309 | scottkingston@turtoncom.com
Patrick Stelmach
Vice President Lic. 01964999
916.573.3314 | patrickstelmach@turtoncom.com
David Khedry
Director Lic. 02063469
916.573.3303 | davidkhedry@turtoncom.com
Matt Axford
Director Lic. 02124801
916.573.3308 | mattaxford@turtoncom.com
ABOUT OUR FIRM
TURTON COMMERCIAL REAL ESTATE We are a boutique firm made up of fresh agents and creative marketers with a passion for Sacramento. We tore down those divisive office walls and created a collaborative work environment where all information is shared to benefit our clients and their real estate. We recognize tradition, yet embrace the future. Whether tenant or landlord, buyer, or seller, we combine indus-
try knowledge, know-how, and resources with creativity, hard work, and a relentless passion to beat client expectations. Contact us anytime to discuss the perfect property for your firm or how to maximize the value of your own property. Interested in learning about the market or working for Turton Commercial? Let’s grab a coffee at Temple or a beer at LowBrau. Our treat!
Jack Scurfield
Director Lic. 02127988
916.573.3316 | jackscurfield@turtoncom.com
Kimio Bazett
Director Lic. 02152565
916.573.3315 | kimiobazett@turtoncom.com
Project Management
Melody Jones
VP - Project Management Lic. 01296376
916.496.1527 | melodyjones@turtoncom.com
Commercial Finance
John McCallum
SVP - Commercial Finance Lic. 01177134
916.573.3313 | johnmccallum@turtoncom.com
Marketing
Brooke Butler
VP - Operations & Marketing Lic. 02086576
916.573.3301 | brookebutler@turtoncom.com
Corey Lau
Creative Director
916.573.3304 | coreylau@turtoncom.com
SERVICES Buyer Representation Seller Representation Landlord Representation Tenant Representation Public Agency Representation
Building Valuations Property Management Project Management Commercial Financing In-house Marketing
CONTACT
Justine Franklin
2131 Capitol Ave, Ste 100 Sacramento, CA 95816 916.573.3300 TURTONCOM.COM Instagram: @turtoncre
916.573.3304 | justinefranklin@turtoncom.com
Marketing Director
© 2022 This information has been secured from sources believed to be reliable. Any projections, opinions, assumptions or estimates used are for example only and do not constitute any warranty or representation as to the accuracy of the information. All information should be verified through an independent investigation by the recipient, prior to execution of legal documents or purchase, to determine the suitability of the property for their needs. Logos and/or pictures are displayed for visual purposes only and are the property of their respective owners.
11 owners that would sell their property off-market if the terms are right
12 off-market retail properties
4 hard money lenders looking to lend on our projects
Two GCs looking to do jobs inexpensively during a two-month downtime
23 tenants looking to downsize in next 18 months 300 extra parking spaces over 11 neighborhood parking lots
8 rising star restaurants looking for their next location
$4 craft can roulette at Kupros
8 off-market land opportunities
Intellectual Capital
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$250,000,000 in consideration 2022 40% deals done off-market
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