The former Pyramid Alehouse building, a key spot on the K Street corridor in downtown Sacramento, has been sold to an investor group.
Sutter Capital Group, a Sacramento investor firm that has been buying historic properties in the downtown area, said Thursday it had purchased the property at 1029 K St.
The seller, the California State Association of Counties, said the sale price was $4.4 million. The price included a small parking lot about a block away on I Street, said Jean Jordan, the association’s director of operations.
Burke Fathy, a principal in Sutter Capital, said his firm is looking for a restaurant tenant to occupy the 10,000-square-foot space that’s sat empty since Pyramid closed in March 2013. He said four potential tenants have already toured the site.
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Fathy said the purchase reflects his firm’s belief in the rejuvenation of downtown Sacramento, aided in no small part by the construction of the new Kings arena at Downtown Plaza.
“There’s a real pent-up demand for real urban living,” he said.
Michael Ault, head of the Downtown Sacramento Partnership, agreed. He noted that other portions of K Street are starting to come to life, including the major mixed-use project planned by development firms D&S and CFY for the dilapidated 700 block, just east of the arena.
“When you look down that corridor toward the arena, you’ve got a lot of good activity,” Ault said.
The 1029 K St. property consists of two buildings, three and four stories each, with a total of about 46,000 square feet of space. Current tenants include an art gallery and some offices upstairs, he said. In all, the two buildings are about half occupied, Fathy said.
“It’s a landmark building,” he said. “It’s got a lot of history, a lot of interesting interior detail.” Built in 1911, the property was originally occupied by a meatpacker and later became the Ransohoff’s department store.
“There’s definitely some renovation to do,” he said. “We definitely have some capital to invest in the building.”
Jordan said the counties association realized it no longer wanted to be in the property management business, and the timing was right. “With the arena construction, it seemed like a prime opportunity,” she said.
Sutter Capital last fall bought the old Hall of Justice building near the railyard with the intention of converting the property into loft-style apartments. After some deliberation, the firm has now decided to keep the building as office space, Fathy said. The reason is that Sutter Capital believes the market isn’t quite ready yet for residential development at that site.
“The arena isn’t here yet; the railyard isn’t here yet,” he said.
The arena is set to open in 2016. The railyard remains empty, although UC Davis is considering building a food-research institute on the property and state officials plan to build a new Sacramento Superior courthouse there, as well. A soccer stadium has been proposed for the site if Sacramento is granted a Major League Soccer expansion team.
Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.