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A building on a busy corner in midtown Sacramento has sold, in what could be the first step toward redevelopment.
The new owner of 2201 J St. is considering both reuse of the existing 5,370-square-foot building and developing something else there, said Ken Turton of Turton Commercial Real Estate, a broker on the sale of the building.
“You could easily put up a three-story residential building with retail,” Turton said.
On a per-square-foot basis, the sale might have been the most expensive ever for an urban Sacramento property, according to Turton Commercial. The deal valued the 6,400-square-foot parcel at $240 per square foot.
Scott Kingston of Turton Commercial said developers are also taking a longer look at relatively small parcels like 2201 J St.
“It’s possible to get pretty good density on the smaller parcels,” said Kingston, who brokered the deal with Turton on the seller’s behalf. “And it’s priced to where the small- to mid-sized developers can get on the playground.”
Let’s start with chocolate
The operators of the locally owned Blabbermouth Chocolates in Lincoln are retiring, according to a Facebook announcementon Monday. They said their lease for a space at 448 Lincoln Blvd., Suite 203, will expire June 30. “After weighing the sides we thought it was probably time to go,” the Facebook post says. Discounts begin today. Blabbermouth Chocolates sells products such as truffles, peanut brittle and chocolate bars. The business was founded in 2013 by Darlene and Gary Kramer.
Esquire Grill closes
After 20 years in downtown Sacramento, Esquire Grill has shut its doors. Read my article to learn more.
From the real estate beat
A building on a busy corner in midtown Sacramento has sold, in what could be the first step toward redevelopment. The new owner of 2201 J St. is considering both reuse of the existing 5,370-square-foot building and developing something else there, said Ken Turton of Turton Commercial Real Estate, a broker on the sale of the building.
With opportunity zone designations in key areas and a perception as a city on the rise, Sacramento could be an attractive estination for investors looking to take advantage of tax breaks, according to local experts.
In particular, much of downtown Sacramento is within an opportunity zone, while also seeing ongoing interest in new residential and retail projects.
Ken Turton, of Turton Commercial Real Estate, said developers will hesitate on many kinds of projects with only a 6% to 7% yield. Even getting capital gains taxes waived, as with opportunity zone investments, won’t change that calculus for all of them, he said.
“In that regard, certain investors pay attention,” he said.
VSP Global will triple the space for its innovation center with a move later this year to The Cannery in Sacramento.
At 1651 Alhambra Blvd., VSP will occupy 16,200 square feet, a sizable jump from the 5,000-square-foot space it’s occupied since 2013 at 1616/1630 I St. in midtown Sacramento.
“The new space in The Cannery affords more square footage, modern tooling, and discrete areas for work and large-scale meetings,” VSP Global spokesman Jon Schuller said in an email. “The Cannery is also right off the Stockton Blvd. exit of US-50 and a short walk from the 29th Street light rail station.”
Three blocks south of Sacramento’s R Street corridor, a building for sale or lease occupies more than three quarters of a square block.
Because of its size, 1300 U St. could have a number of potential futures, including redevelopment, according to brokers on the deal.
“The area has kind of grown up around it,” said Ken Turton, president of Turton Commercial Real Estate. “That whole location has changed, and its value proposition has changed.”
CycleBar, the Irvine-based indoor cycling franchise that made its local debut two years ago, is joining a project of apartments and retail at 1430 Q St. in Sacramento.
The 1,861-square-foot cycling studio could open in the fourth quarter of this year, according to brokers on the deal. Aaron Marchand and Scott Kingston of Turton Commercial Real Estate represented the landlord and tenant in CycleBar’s lease.
After Cypress Properties Group LLC had success with its first Old Sacramento building purchase, it’s picked up another to see about extending the run. A two-story, 19,308-square-foot building at 1200 Second St. sold Feb. 15 to Bay Area-based Cypress Properties for $3.8 million, according to brokers on the deal. Ken Turton of Turton Commercial Real Estate said the property, sold off market, fit with Cypress’ pattern for renovating buildings in overlooked areas.
Two midtown Sacramento properties with the same owner are on the market — but for lease, not sale. That’s a change for one of those properties, 1616/1630 I St., a two-building property with 6,400 to 26,000 square feet of space available for lease as an office or retail use. Scott Kingston, a vice president with Turton Commercial Real Estate who’s listing that and nearby 817 16th St., said Aaron Zeff and his company Priority Parking own all three.
Tenant improvements are getting underway for two firms that took office occupancy at midtown Sacramento’s Ice Blocks to 100 percent. Late last year, video game firm Electronic Arts signed a lease for 30,000 square feet, and coworking firm Spaces leased another 35,000 square feet at the Heller Pacific development of new and adaptive reuse retail, office and residential space. Aaron Marchand, a vice president with Turton Commercial Real Estate and a broker on those leases, said both companies should move in around mid-year.
Months after it began filling with tenants, midtown Sacramento apartment and retail project Q19 is for sale.
Project partners SKK Developments and The Grupe Co. felt the combination of better-than-expected leasing, good investor interest in Sacramento and low interest rates made it a good time to list the property, said brokers from Turton Commercial Real Estate listing the property.
“It’s an opportune time from a debt standpoint to acquire properties,” said John Mudgett, a senior director at Turton Commercial. “I see this as a safe harbor asset with continued demand from a leasing standpoint.”