Pappas Finds Folsom Gateway Positioned to Capitalize on Future Growth

Folsom Gateway is a 242,582-square-foot regional retail center located at 2425-2445 Iron Point Rd. in Folsom, CA. The retail center recently sold to Sacramento-based Pappas Investments for an undisclosed purchase price. The seller was an entity affiliated with Braddock and Logan.

The property takes its name from the position at the gateway to Folsom, drawing customers from a 20-mile radius and benefiting from Highway 50 visibility. The center is in the Folsom Retail Hub, an affluent Sacramento submarket with more than 4 million square feet. A population of 114,756 within a 5-mile radius has grown 15 percent in the past 10 years with an additional 6 percent expected in the next five years, according to Newmark research.

Newmark’s Nicholas Bicardo facilitated the transaction.

“Folsom Gateway is a strong regional grocery-anchored asset with a very attractive weighted average lease term that is well-positioned to capitalize on the future growth in the surrounding area,” said Bicardo. “We saw tremendous interest from both institutional and private capital for this asset.”

The property is home to a diverse tenant mix including Sam’s Club, REI, Staples and Best Buy. Anchored by a 131,652-square-foot Sam’s Club and fuel station on a long-term ground lease, Folsom Gateway is adjacent to Folsom Ranch, one of the largest master-planned communities in Northern California.