The Kings announced this week they have sold more than half of the 45 luxury condominiums they’re building next to the Golden 1 Center downtown – some at $1 million – a sign the once-sleepy state capital is taking on some of the big-money swagger of San Francisco and Los Angeles.
Team business operations president John Rinehart said the sales pace is exciting and meets expectations for what the team describes as an exclusive, high-end “urban resort,” teamed with the one-year-old arena and growing Downtown Commons entertainment district.
“It has taken on the breadth and depth we knew it would,” Rinehart said. “We feel everything we are doing is creating an impact on the region.”
The Kings declined to say who has purchased the initial 23 units. Asking prices have ranged from $600,000 to more than $1 million. A signature 3,323-square-foot, three-bedroom, three-bath penthouse on the top floor is being marketed at $4.1 million. That asking price appears to be the highest per square foot in the region. The unit has not yet sold.
Some of the initial condominium buyers are selling larger homes in the Sacramento region and stepping down in size to live downtown, team officials said this week. Others are business owners or people from around the region or the Bay Area who will use the condos as a second home they can use while they enjoy basketball games, concerts and other downtown entertainment. One buyer is from China, team officials said.
The Kings said the first condos will be ready by the end of the year.
“There is a pent-up demand for this,” said Christopher Miller, whose Beverly Hills-based agency, The Agency Development Group, is marketing the condos. He said some buyers see Sacramento as a launch point for getaways to Tahoe, Napa and San Francisco, but with lower real estate prices.
The as yet unfinished condominiums are perched in the upper portion of the 16-story Sawyer Tower, above the Kimpton Sawyer Hotel, which opens for business Oct. 10. The building has entrances on J Street and on the K Street arena plaza facing the arena main entrance.
A real estate agent who recently sold one of the $1 million units said the sales pace after five months is impressive, given that the high-rise units are not yet ready to be shown to potential buyers. That agent, Tim Collom of Dunnigan Realtors, said the $4.1 million asking price for the penthouse would not be the highest sales price for a residence in the region. But its cost per square foot, at $1,234, likely would be.
Collom said he showed the site, which includes a furnished mock-up of a condo, to five potential buyers. Four indicated it was pricy. The fifth, a business owner, jumped at the idea of buying an exclusive property in the heart of downtown.
“They didn’t hesitate at all” in buying a condo, Collom said. “Theirs looks at the arena and Tower Bridge.”