An upscale "Whole Foods-type" grocer and a pharmacy could be on the verge of buying one of Sacramento's premier retail locations – the former Hubacher Auto Center site at Howe Avenue and Fair Oaks Boulevard.

That's the talk among real estate brokers who have seen two other groups make runs at the key site only to back off over the past year.

Among the earlier prospective purchasers, as we reported in May, was Wal-Mart Stores. But the huge retailer later opted to pass on the 6.5-acre site – in part, we hear, because of neighborhood opposition to its plans.

Now a new group is "taking a very serious look at it" and is close to going into contract on the property, says its representative, Jim Teare of Terranomics Retail Services.

He's not identifying the prospective purchasers.

Neither is Randy Getz, the CB Richard Ellis broker who is the listing agent on the property.

But, Getz says, they are "two very highly qualified companies that want to locate there and they will definitely (add) value to the neighborhood."

Without acknowledging that Wal-Mart was one of the earlier prospective buyers of the site, he says there was "some consternation" among people unhappy about that possibility.

"My sense," he adds, "is that the neighborhood and surrounding property owners will be ecstatic when … the current (potential) purchasers are identified."

Getz says any deal for the property likely will require an extended period for due diligence.

"A transaction like this (often) takes nine to 12 months to be completed," he says.

British invasion

Speaking of grocery chains, the British-based Fresh & Easy chain is making its long-awaited Sacramento-area debut in March.

With a flourish.

It will open five local stores that month, with plenty more to follow.

The initial five, in no set order: Sites at Watt and El Camino avenues and at Mack Road and Franklin Boulevard in Sacramento; at Joiner and Sterling parkways in Lincoln; at Elk Grove Florin and Calvine roads in Elk Grove; and at East Natoma Street and Blue Ravine Road in Folsom.

The chain, which now has 184 locations, so far has identified 20 eventual Sacramento-area sites. But, says spokesman Brendan Wonnacott, "there are more than that in the pipeline."

Small is beautiful

The Capitol Area Development Authority has two interested buyers for one of its most unusual holdings, a tiny, 40-foot-by-40-foot lot in midtown Sacramento.

CADA, which normally works to foster large housing projects in the city's core, ended up with the "oddball piece" five years ago, says development director Tom Kigar.

Several developers considered building at the site – on 17th Street, between P and Q – but were stymied in part by zoning requirements that any project there have at least two living units.

Now, however, two developers have responded to a CADA request for proposals with competing plans for the long-vacant lot. Each would put a three-story, single-family home there and still meet the multi-family edict by including a guest studio unit.

Each would agree to pay $64,000 for the lot – just over half what CADA sought when it first began marketing the property.

"I think the prospects (for success) are very good," says Jacqueline Whitelam, CADA's new interim executive director.

Whitelam identifies the prospective builders as architect Louis Kaufman and Arcade Homes' owner Dave Pajouhesh. The CADA board will select one of them in March, with construction slated to begin as early as August.

Fresher choice

Officials at Arden Fair mall are closing in on a deal to replace the Fresh Choice restaurant that closed Jan. 1 after 20 years at the Sacramento shopping center.

Tod Strain, Arden's senior property manager, says he's in talks with various restaurant operators interested in the prime site at the mall's main entrance.

"We're currently working on several different opportunities that we hope to announce within the next month," he says.

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Reach Bob Shallit at (916) 321-1049.

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