Business & Real Estate

Housing, retail, a hotel: What’s next for former downtown Macy’s property?

The Macy’s at Downtown Commons in Sacramento on Monday, March 4, 2024.
The Macy’s at Downtown Commons in Sacramento on Monday, March 4, 2024. hamezcua@sacbee.com

With the purchase of the former downtown Macy’s department store, the Shingle Springs Band of Miwok Indians have acquired two adjacent properties in the center of Sacramento’s urban core for a combined $32 million.

The tribe made clear, Thursday, that it is pursuing a project that would span both properties: The former store in the downtown mall and a vacant lot catty-corner from it, at 301 Capitol Mall.

But Chairwoman Regina Cuellar said the tribe hasn’t made any decisions about what to build, and all options are on the table.

“We’re open to all of it,” Cuellar said in an interview Thursday. “We’ve talked about housing, retail, a hotel, a museum, family entertainment… We’re open to anything.”

The tribe is open to the possibility of a casino on the site, Cuellar said, but that wasn’t the group’s main idea. The regulatory process for establishing a casino can be onerous and time-consuming, and Cuellar hinted that the tribe may want to move more quickly than it would allow.

“It can be a long, challenging road,” Cuellar said. “Whatever we can do there — sooner rather than later — that’s what we want to do.”

The tribe might be able to move faster with the Macy’s building, Cuellar said, than the 301 Capitol Mall site, because it has an existing structure.

“The building’s actually really in good condition. I don’t think we’re going to tear it down,” Cuellar said.

The tribe last year bought the vacant city block diagonal from the former Macy’s. The property, 301 Capitol Mall, was once the site of the Sacramento Union, but after the newspaper folded in the 1990s it saw a series of failed high-rise development projects. Bordered by the Downtown Commons to the north and Capitol Mall to the south, the lot has become known among locals as the “hole in the ground.”

Cuellar said the tribe was starting planning on that site when members heard that the Macy’s site might hit the market.

“We kind of stopped, and started thinking bigger and grander,” Cuellar said.

Cuellar said she’s hopeful that the tribe’s efforts can play a part in adding value and spurring tourism downtown. Cuellar said she agrees with those who believe the district needs some revitalization. But she’s optimistic.

“It’s our home. We aren’t going anywhere, and we’re invested in it. We want to see Sacramento do well. We want people to come and visit,” she said. “Sacramento, it’s a hidden gem.”

This story was originally published July 10, 2025 at 5:20 PM.

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Annika Merrilees
The Sacramento Bee
Annika Merrilees is a business reporter for The Sacramento Bee. She previously spent five years covering business and healthcare for the St. Louis Post-Dispatch.
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