Associate Vice President CA DRE #02113888 916 784 2700
ARainey@GallelliRE.com
Aman Bains
Associate Vice President
CA DRE #02101492 916 784 2700
ABains@GallelliRE.com
CONFIDENTIALITY & DISCLAIMER STATEMENT
The material contained in this Offering Memorandum is confidential, furnished solely for the purpose of considering the purchase of Laguna Reserve Marketplace located at SWC Whitelock Parkway & Bruceville Road, Elk Grove, CA 95757 and is not to be used for any other purpose or made available to any other person without the express written consent of Gallelli Real Estate Services or the Owner. The material in this Offering Memorandum is limited in scope and does not contain all information that a prospective buyer would reasonably require to complete a thorough investigation of the condition of the Property for its purposes. The information in this Offering Memorandum has been obtained from sources deemed to be reliable and has not been verified for its accuracy or completeness and is based in part upon information supplied by the Owner and in part upon information obtained by Gallelli Real Estate from third party sources. Summaries contained in the Offering Memorandum of any legal or other documents are not intended to be comprehensive statements of the terms of such documents but rather only outlines of some of the principal provisions contained therein. In accordance with our standard practice, this Offering Memorandum has been prepared solely for informational purposes and does not constitute all or any part of an offer or contract. It is designed to assist a potential investor in determining whether to proceed with an in-depth investigation of the subject project. Gallelli Real Estate strongly recommends that each potential investor review the information contained in this brochure with its accountants, attorneys and tax advisors.
Any projections contained herein represent best estimates based on assumptions considered reasonable under the circumstances. No representations or warranties, expressed or implied, are made that actual results will conform to such projections. All references to land area or building area, acreage, square footage or other measurements should be verified by buyer and their third-party consultants. Any potential buyer acknowledges that that they will solely rely on its own independent inspection of the Property materials and the physical condition of the property using its own professional legal, accounting, tax advisors, engineers, architects, environmental, physical condition consultants and any other consultants necessary to verify the accuracy and completeness of all summaries contained in this Offering Memorandum and the condition of the Property not disclosed in this Offering Memorandum. This document is provided subject to errors, omissions, prior sale or lease, change of price or terms, other changes in the information and is subject to modification or withdrawal without notice.
INVESTMENT SUMMARY
As the exclusive agent, Gallelli Real Estate is pleased to present this Offering Memorandum for the sale of the fee simple interest in The Shops at Laguna Reserve (Safeway NAP). The asset represents the opportunity to acquire a Class A shopping center shadow anchored by one of the nation’s most dominant grocers. The neighborhood shopping center was built in two phases, the six pad buildings totaling 33,308 square feet (The Offering) were constructed in 2005, and the Safeway building (NAP) totaling 56,988 square feet was constructed in 2024. The combination of tenancy, location, and demographics offers an investor the ability to acquire a proven investment which is well-positioned to take advantage of Elk Grove’s continuing growth.
PROPERTY ADDRESS
PRICE
NOI (IN-PLACE)
10040, 10044, 10046, 10054, 10058, 10064 Bruceville Road, Elk Grove, CA 95757
$19,500,000
$1,198,679
OWNERSHIP TYPE Fee Simple
TOTAL BUILDING AREA ±33,308 SF
TOTAL LAND AREA 4.160 Acres
YEAR BUILT 2005
THE SHOPS AT LAGUNA RESERVE
SAFEWAY SHADOW ANCHORED
INVESTMENT HIGHLIGHTS
Shadow Anchored by One of the Nation’s Most Dominant Grocery Chains
INVESTMENT HIGHLIGHTS
Safeway is occupying 56,988 square feet on a brand new 20-year firm term lease. Safeway has 918 locations in the United States which ranks it as one of the top grocery chains nationwide. Safeway is owned by Albertsons which has over 2,200 locations in 34 states and the District of Columbia.
Below Market Rents
The average shop tenant is paying 37% under market rate. Over 80% of the leases in place were negotiated prior to securing Safeway as an anchor tenant. Upon lease expirations, the new owner will have the opportunity to recapture the loss to lease for the shop tenants.
Rental Rates Poised to Rise
Of the over 6.2 million square feet of retail space within the Elk Grove submarket, the combined vacancy rate totals only 2.3% . The lack of available, quality space in traditional grocery-anchored centers coupled with minimal new construction is putting upward pressure on rental rates, further increasing the potential to increase the current NOI.
BrucevilleRoad
Ideal Corner Location
The Property, located at the southwest quadrant of the intersection, is one of two commercial properties at the intersection of Whitelock Parkway and Bruceville Road, the other property being a Walmart anchored center. The Property is located 1-block from Franklin High School and Toby Johnson Middle School, which combined, have a student population of approximately 4,000.
Densely Populated and Growing
Laguna Reserve is located in the center of a very densely populated region. Using the boundaries of Elk Grove Boulevard to the north, Bilby Road/Kammerer Road to the south, Highway 99 to the east, and Franklin Boulevard to the west, this is an area with over 18,000 existing homes and more than 24 single family projects under construction . The majority of new construction homes are located directly southeast from Laguna Reserve.
±24,000ADTatintersection
Ground Pad Not A Part
Recent Leasing Interest
Over the last 12 months, one new lease and two lease renewals were completed. The new tenant lease was on a ±5,200 SF space at $39.00 per square foot. The most recent shop space renewal achieved $42.00 per square foot, which is nearly 40% higher than the average shop space rent.
Long Term / Stable Tenancy
50% of tenants, representing over 50% of the leasable area, have been in place for 10+ years prior to Safeway opening, showing commitment and stability to this location. During the owner’s 4.5 years of ownership, occupancy has mostly been at 100% and has never fallen below 96%.
Significant Existing Residential Presence
There is a population of 106,985 over 34,500 households within a three-mile radius of the Property, more than twice the number of households typically required to support the five grocery stores within this area.
Continued Residential Growth
Elk Grove continues to be one of the fastest growing residential areas in the Sacramento MSA with an 8.52% Annual Average Population Growth Rate.
Not A Part
Ground Lease
THE SHOPS AT LAGUNA RESERVE
SAFEWAY SHADOW ANCHORED
AREA OVERVIEW
TRADE AREA HIGHLIGHTS
Other notable grocers in the marketplace include: Costco, Walmart, Raley’s, Sprouts, Trader Joe’s and Nugget are ranked as some of the top branch locations statewide, proving a very high demand for an under supplied market for grocery stores.
Reducing the threat of new competition
The large Big Box Retail development 1-mile to the north of the Property at the intersection of Bruceville Road & Elk Grove Boulevard is primarily directed at large retail users, a sign of continued confidence in the Elk Grove market. These developments are complementary to the Property and effectively drive more customer traffic to the area.
The City of Elk Grove’s population has grown nearly 220% since 2000, ranking 2nd in percentage growth and 1st in people growth for the 4-county Sacramento MSA. There are over 100,000 more people living in Elk Grove now than in the year 2000; no other area in the Sacramento MSA comes close to this rate of expansion.
SUBJECT PROPERTY
Whitelock Parkway
Bruceville Road
T he City of Elk grove is the second largest incorporated city within Sacramento County. It has also consistently been one of the fastest growing cities in the region - the population of Elk Grove has more than doubled in the last 23 years and is currently home to over 176,584 people. The City of Elk Grove is also very business friendly and has continually added jobs since the recession. In fact, the City of Elk Grove has one of the lowest unemployment rates in the county at 4.8%. Elk Grove also boasts strong income and population demographics. 3Mile
According to the Elk Grove General Plan, there is no land zoned to accommodate a similar grocery anchored shopping center within shaded region.
SUBJECT PROPERTY
the only traditional grocery store
south of the Elk Grove Boulevard corridor.
Laguna Reserve has
(Safeway)
Whitelock Parkway
Bruceville Road
Costco ranked as #1 of 12 locations in 30 miles and #23 of 591 nationwide.*
Raley’s ranks as #3 of 63 locations statewide.*
Nugget ranks as #4 of 14 locations statewide.*
Sprouts ranks as #3 of 12 locations in 30 miles.*
*Ranking Data sourced by Placer.ai
Trader Joe’s ranks as #105 of 483 locations nationwide.*
Amazon Fresh ranks as #3 of 39 locations nationwide.*
THE
SHOPS AT LAGUNA RESERVE
SAFEWAY SHADOW ANCHORED
PROPERTY OVERVIEW
PROPERTY DETAILS
PROPERTY ADDRESS
10040, 10044, 10046, 10054, 10058, 10064 Bruceville Road, Elk Grove, CA 95757
OWNERSHIP TYPE Fee Simple
TOTAL BUILDING AREA ±33,308 SF OCCUPANCY 100.00%
NUMBER OF EXISTING BUILDINGS 6 YEAR BUILT 2005
SITE AREA (SF) ±181,197
SITE AREA ACRES ±4.160
PARKING RATIO
±489 spaces / 5.27: 1,000 SF (Entire Center)
COUNTY Sacramento
PARCEL NUMBERS
ACCESS
132-2170-009, 010, 011, 012
Ingress and egress from two curb cuts on Whitelock Parkway and two on Bruceville Road, left turn lanes access both Bruceville Road & Whitelock Parkway
ZONING SC, Shopping Center
TOPOGRAPHY Generally level at street grade
FOUNDATION Concrete Slab
CONSTRUCTION Wood frame with stucco exterior, aluminum framed/glazed store fronts
ROOF Flat with pitched mansard
HVAC Roof Mounted HVAC
PLUMBING Water & sanitary sewer to the building
FLOOD ZONE Zone X (Non shaded area) An area outside the 500-year flood plain UTILITIES
All normal utilities are available to the site provided by the following
- Water: Sacramento County Utilities
- Sewer: Sacramento County Utilities
- Electricity: Sacramento Municipal Utility District (SMUD)
- Gas: Pacific Gas & Electric (PG&E)
- Telephone: Frontier Communications
INGRESS/EGRESS
WhitelockParkway
BrucevilleRoad
*Parking Not to Scale
NOT A PART
Pad
Whitelock Parkway
Bruceville
The Shops at Laguna Reserve was built in two phases, the six pad buildings totaling 33,308 square feet were constructed in 2005, and the Safeway building totaling 56,988 square feet was constructed in 2024.
Whitelock Parkway
PARCELIZATION EXIT STRATEGY
Whitelock Parkway Bruceville Road
THE SHOPS AT LAGUNA RESERVE
SAFEWAY SHADOW ANCHORED
MARKET OVERVIEW
ELK GROVE RETAIL MARKET
Elk Grove is within the top 3 submarkets targeted by retailers looking to expand into the Sacramento Region.
Elk Grove’s Vacancy Rate stood at 3.2% at the close of Q1 2025, compared to the Overall Sacramento Region at 7.6%.
Elk Grove recorded just over 115,000 SF of positive net absorption in the last 4 quarters.
The challenge for this trade area has not been a lack of demand, but a lack of available product. Vacancy in the Elk Grove submarket has been below the 5% level since Q4 2018 and has remained at, or near, historic lows since that time (including during the challenges of the 2020/2021 pandemic).
At the close of Q1 2025 the average asking rent of all retail located within a shopping center, including all anchor and junior box space , in Elk Grove stood at $2.25 PSF on a monthly NNN basis. Two years ago, this metric stood at $1.97 PSF, reflecting a 13% growth. This places Elk Grove among the top 3 Sacramento submarkets for average asking rents.
While likely interest rate cuts in late 2024 may spur a modest uptick in new construction loans, retail development is expected to remain muted for 18-36 months. Construction costs are 30%40% above pre-pandemic levels. Projects that move forward will be heavily pre-leased with speculative development limited to modest amounts of inline and outparcel space. Rents needed to support new construction will drive up rents on existing shopping centers.
THE RIDGE IN ELK GROVE, NEW CONSTRUCTION
Local developer Pappas Investment completed construction on their development, The Ridge, at Elk Grove Boulevard and Bruceville Road.
The project is adjacent to and anchored by:
The Ridge is comprised of 16 buildings with ±70,509 SF of shop space (97% occupied) and has two spaces available of ±18,000 and ±20,000 square feet.
606,000
Pappas Investments
ELK GROVE OVERVIEW
Elk Grove is a family-oriented community where opportunity is around every corner. The City was incorporated into Sacramento County on July 1, 2000 and it offers everything from starter homes to ranch estates, and provides a safe, youthful environment where families can put down roots. Its population of more than 177,000 residents is diverse in ethnicity, age and income levels. Though the area was established in the mid1800’s, the majority of Elk Grove’s growth has taken place over the last 20 years.
Grove Demographics
106,985
SACRAMENTO OVERVIEW
Sacramento, California is located approximately 105-miles northeast of San Francisco. The Sacramento-Arden Arcade-Roseville MSA is comprised of Placer, El Dorado, Sacramento and Yolo Counties. These four counties are the main employment center for the region. In addition, Sutter and Yuba counties are tracked as a part of the region’s population. These counties feature agricultural characteristics and serve as bedroom communities to the Sacramento region because of their affordable housing.
2.6 MILLION 2023 Sacramento MSA Population
34.18% Population growth over the past 23 years
4th in the Nation for the strength of a Clean Energy Economy
THE SHOPS AT LAGUNA RESERVE
SAFEWAY SHADOW ANCHORED
RESIDENTIAL DEVELOPMENT
NEW DEVELOPMENT
Elk Grove has seen robust housing gro wth in recent years, driven by its expanding population—now nearly 180,000 residents—and a surge of new construction. Between 2019 and 2023, the city added roughly 4,000 people (a 2.3% growth rate) even as California’s overall population declined. From July 2023 to June 2024 alone, over 1,000 single-family building permits were issued—the busiest year since before the Great Recession. Multiple subdivisions are under construction by KB Home, Lennar, Richmond American, Taylor Morrison, New Home Company, Woodside Homes and other. Current projects have sold 1,128 homes with an additional 1,409 ready for construction. Collectively, builders are selling 64 per month in communities surrounding Laguna Reserve Marketplace. There are an additional 1,608 homes that have been approved through the city and will be phased into construction as infrastructure is completed.
Multifamily development in Elk Grove is expanding across a diverse range of housing types, including market-rate, affordable, senior, and supportive housing. Three major projects currently under construction—The Lyla, Poppy Grove Apartments, and Pardes Apartments - are set to add a combined 917 units to the community. In addition, 1,012 units have already been approved for construction, with another 414 units under review by city staff.
With over 6,488 homes/units under construction or in the planning process, there is NO planned retail to support the new housing.
SINGLE FAMILY RESIDENCES - UNDER CONSTRUCTION
THE
SHOPS AT LAGUNA RESERVE
SAFEWAY SHADOW ANCHORED
FINANCIAL OVERVIEW
TENANT PROFILES
As the largest coffeehouse worldwide, Starbucks operates a staggering 38,038 locations across the globe. Starbucks is publicly traded on the NYSE, ticker symbol SBUX. Their estimated revenue for 2023 was nearly $36 Billion.
www.starbucks.com
Headquarters: Seattle, WA
Locations: 38,000+
Not A Part Of Sale
Safeway, Inc. is the largest banner owned and operated by Albertsons Companies, with 918 locations in the United States ranking it as one of the top grocery chains Nationwide. Its parent company, Albertsons Companies has over 2,200 locations in 34 states and the District of Columbia making it one of the leading grocers worldwide.
Bank of America is one of the world’s leading financial institutions, serving approximately 69 million clients. The company serves clients through operations across the United States and over 35 other countries. Bank of America is traded on the NYSE as ticker symbol BAC.
www.bankofamerica.com
Headquarters: Charlotte, NC
Locations: 3,800 Brick & Mortar, 15,000 ATMs
Round Table Pizza is a chain and franchise of pizza parlors across the Western United States. The company currently has two formats; Traditional Round Table Pizza restaurants that serve primarily pizza, salads, and beverages, and a new format, Round Table Pizza Clubhouse that features expanded entertainment with arcade games and an expanded menu and craft beer selection.
www.roundtablepizza.com
Headquarters: Atlanta, GA
Locations: 400+
FINANCIAL ASSUMPTIONS
See pro forma market rent table for tenant’s specific market rent.
Bank of America and Pacific Dental rent and NNN payments and Safeway and ground pad NNN payments are excluded from vacancy factor during hold period and upon sale.
is CAM Pool includes Inline/Pad building expenses and Property taxes.
is a CC&R common area expense billed back to shop/pad buildings.
CASH FLOW ANALYSIS
Potential Operating Pass Throughs & Other Income
INITIAL
EQUITY INVESTED
Market rental rates are listed on attached sheet for each
Year one of analysis begins November 2025 and ends October 2026.
PROJECTED INCOME
PROJECTED INCOME PER SQUARE FOOT
Projected Income reflects current contract rent then rolls to Monthly Market Rent at expiration of lease term.
PROJECTED
MONTHLY MARKET RENT PER SQUARE FOOT
MARKET TURN OVER
VACANT SPACE LEASED AT 100% NEW LEASE TERMS
Vacant space
Existing
PROJECTED NNN INCOME (EXCLUDING PROPERTY MANAGEMENT FEE)
Assumed space released at a monthly lease start rate of $3.50 psf, with 3.0% annual increases MLA - Assumed market rollover. Co-Tenancy - None. Exclusive Use - None
MLA - Assumed tenant exercises option at the expiration of the initial term.
Co-Tenancy - If Safeway closes, tenant may pay 50% rent, if still vacant after one year, tenant may terminate lease, or pay full amount of minimum rent if it does not terminate.
Exclusive Use - General dentistry and specialty dentistry.
Option rent shall increase 10% over prior at the beginning of each option period. Tenant pays an admin fee on CAM but does not reimburse property management.
MLA - Assumed exercised option at 10% increase over prior rent
Co-Tenancy - None
Exclusive Use - Coffee, coffee drinks and whole beans, etc. does not apply to premises containing over 10,000 square feet or sit down restaurants. Pays admin fee on CAM, admin fee does not apply to taxes, insurance or property management. Currently working on a lease amendment that will increase the option rent over the above stated amount.
MLA - Assumed market rollover Co-Tenancy - None.
Exclusive Use - operation of a sit-down/take-out restaurant primarily serving and offering uniquely Chinese cuisine, does not apply to separately owned parcels, premises over 5,000 SF or Safeway. Pad C Bank of America
MLA - Assumed tenant exercises options at a 10% increases over prior rent, flat for term. Co-Tenancy - None
Exclusive Use - Primary use and operation of a financial institution, does not apply to Pad A, Pad E or any premises over 20,000 square feet. Option rent to be 95% of fair market rent.
Admin Fee excludes taxes and insurance. Tenant pays an admin fee on CAM but does not reimburse property management, tenant pays its own property insurance. This is a ground lease.
Pad B Peony Palace
3005
CA DRE #01099383 916 784 2700 Gary@GallelliRE.com
CA DRE #01410074
916 784 2700 Pat@GallelliRE.com
Adam Rainey Associate Vice President CA DRE #02113888 916 784 2700
