Turton in the news
K Street’s reinvestment and revitalization in downtown Sacramento is continuing, with a Bay Area firm closing escrow this week on a second building there. Property records show Bauen Fund 2018-1130 LLC bought 1130 K St., a four-story office building, for $19.5 million. The address for the buyer in Los Gatos corresponds to Fox Creek Fund LLC, whose website describes the company as a diversified investment fund with an interest in real estate acquisition and management.
Less than a year after it last sold, a potential redevelopment site on Broadway in Sacramento is for sale again. The property at 2400 Fifth St., about half an acre at Fifth and Broadway, is being listed for $4.1 million by Lincoln-based Banyan Commercial Real Estate. Tai Le, the founder and broker at Banyan, said the zoning for the property allows anything from office to high-density apartments to other possibilities.
The franchise owner of a planned Beach Hut Deli in downtown Sacramento said what’s offered will be slightly different than other locations of the popular fast-casual sandwich shop. At 711 K St., franchise owner Sean Hook wants to establish both a sandwich shop and a 1,000-square-foot taphouse in the space, which should open in early 202o.
Sacramento officials and business leaders marked another step in revitalizing downtown on Wednesday, completing the restoration of the historic Bel-Vue Apartments. Speaker after speaker in a new lobby/library created at the three-story building at 1123 Eighth St. described the difficulties involved in making the building from 1909 fully functional again. And in doing so, they repeatedly invoked the name of developer Ali Youssefi, who died last year of cancer at 35.
An online booking company for events is opening its first regional spot in midtown Sacramento. The company Neyborly, which has six locations in the Bay Area and Portland, Oregon, will occupy a 4,800-square-foot building at 817 16th St., according to a broker who worked on the lease. “Neyborly creates vibrant and unique venues for events, meetings, parties and popups,” said Scott Kingston, a vice president at Turton Commercial Real Estate, in an email. “They will help you develop an amazing gathering.”
While there’s no update on bigger neighboring projects, one rehab housing project in downtown Sacramento has wrapped up work. Construction is complete and tenant processing is underway for the Bel-Vue, 22 rehabbed units of affordable housing at 1123 Eighth St. Shahriar Nejad, a project manager with developer CFY Development Inc., said the 110-year-old building has received a temporary certificate of occupancy. A grand opening event is set for September, he said in an email. Rehabbing the units as well as first-floor commercial space was pegged at about $7.5 million.
The retail portion of the project at 1430 Q St. in Sacramento is completely leased, representatives from Turton Commercial Real Estate announced on Twitter. Restaurant chain Fire Wings will fill the final retail spot in the project near the R Street Corridor, joining previously reported tenants such as CycleBar, Saha Float Spa and The Good Scoop. The project, which is being developed by 1430 Q St. Investors LLC, will also include apartments.
Starbucks is closing one of its midtown Sacramento stores next month, and leasing agents are looking for a new tenant to fill the space. The cafe at 2604 J St. will have its final day on July 14, representatives from Starbucks (Nasdaq: SBUX) confirmed in an email to the Business Journal. “As part of Starbucks standard course of business, we continually evaluate our business to ensure a healthy store portfolio,” the company said in a written statement.
One of the Sacramento area’s Which Wich locations has closed, leaving a restaurant vacancy in midtown. The Dallas-based sandwich franchise entered the area in 2016, with a location at 1020 16th St. It was in the o1 Lofts Midtown project, which includes lofts and ground-floor retail space. The other retail tenants are Starbucks and Pieology Pizzeria. Which Wich on 16th Street is now closed. Paper covered the windows on Wednesday and the eatery’s phone number was disconnected.
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.