Ethan Conrad buys closed 99 Cents Only sites in North Highlands, Stockton and Vallejo


By Ben van der Meer – Senior Reporter, Sacramento Business Journal

July 8, 2024

A real estate investor has scooped up three of the closed locations of bargain retailer 99 Cents Only — in one case, a spot he previously owned.

Ethan Conrad of Ethan Conrad Properties Inc. closed escrow last week on the chain’s former locations at 4319 Elkhorn Blvd. in North Highlands as well as in Stockton and Vallejo.

“I would say that 99 Cents Only, for the most part, had some pretty good real estate,” Conrad said in an email. “Also, I would say that with retailers, it’s all about sales per square foot and what their occupancy cost is and therefore, often retail properties in high-income neighborhoods may not do as well as the ones in average income neighborhoods.”

According to Conrad, he paid the following amounts for the three sites:

  • $2.9 million for 4319 Elkhorn Blvd., about 36,000 square feet of building;
  • $4.15 million for 1120 E. Hammer Lane in Stockton, with a building of nearly 67,000 square feet; and
  • $836,000 for 42 Springstowne Center in Vallejo, with a building of about 19,500 square feet.

All three locations will go through some light remodeling, he said.

Conrad said he owns the rest of the center where the North Highlands store was located, and already has a pending lease with a national clothing retailer for the former 99 Cents Only space.

European Market, a grocery specializing in items for Russian and Ukrainian immigrants, already occupies about 10,000 square feet of that building, he added.

Records show Conrad previously owned 4319 Elkhorn Blvd. at one time, but real estate information service Reonomy indicates the most recent owner was 99 Cents Only Stores Number Holdings Inc., with an address in Tulsa, Oklahoma.

That appears to be a holding company for several former 99 Cents Only locations, including the ones Conrad acquired in Stockton and Vallejo as well. No contact information could be found for the seller.

Northbrook, Illinois-based Hilco Real Estate LLC, which is assisting in disposition of the 99 Cents Only stores after the chain filed for bankruptcy earlier this year, didn’t return an email for comment on the Conrad purchase Monday. Two other former 99 Cents Only stores are set to become Dollar Tree locations.

A fitness chain is finalizing a lease for the Vallejo store, Conrad said, while several Latin grocery store chains are eyeing the Stockton site, which is half occupied by DD’s Discounts.

“The fact that I’ve already leased two of these three buildings should give you an indication as to relatively high demand for box space in the right locations,” Conrad said.