Part of Citrus Heights’ Sunrise Mall could become a sports complex under new plan
A developer is seeking to take over the majority of the real estate in Citrus Heights’ Sunrise Mall, officials said Friday, to construct a 160,000-square-foot sports facility, housing and retail.
Tallen Capital Partners is in contract to acquire the portion of the mall owned by Namdar Realty Group, a New York-based real estate firm and largest property owner at Sunrise Mall. Tallen Capital Partners’ CEO said he would pursue a significant redevelopment of the site that would include housing, restaurants and retail. A group called the Mettle Shop would acquire about 14 acres of that land to build rinks for hockey and figure skating, plus a covered turf field.
Sunrise Mall has struggled in recent years, and sales tax revenues have sunk steadily for decades. In 2021 the city laid out an ambitious plan for the site that would see it opened up from classic retail to a variety of uses, including housing, entertainment and hotels. Officials and residents last year resisted a smaller-scale proposal by a developer looking to bring in drive-thrus and a Home Depot.
The sports facility would be the first major development under the 2021 plan.
Citrus Heights and other municipalities across the U.S. have sued Namdar Realty Group — a prolific owner of American malls — over the past few years for allowing shopping centers to fall into disrepair. In its lawsuit, Citrus Heights said city police had responded to a disproportionate number of calls to the property, and that there was widespread water intrusion. The city previously launched an appraisal of the Namdar-owned real estate, a step that can lead toward taking over ownership through eminent domain.
Representatives from Namdar did not immediately respond to a message seeking comment Friday.
Citrus Heights officials are hopeful that the latest proposal could serve as an anchor for the struggling property.
“It has the potential to serve as a catalyst,” said Meghan Huber, the city’s economic development director. “It could create a critical mass of activity, and increase foot traffic... and create the market conditions necessary to support complimentary redevelopment all over the site, like restaurants and hotels.”
Mettle Shop CEO Joe Wagoner said the proposed sporting complex was previously planned off Prairie City Road in Folsom, though his firm was “never really set” on a location. The Sunrise Mall site makes sense, he said, because it has existing infrastructure that will make construction easier and is an easily accessible location for area residents. Local officials have said the Sunrise Boulevard intersection next to Sunrise Mall is the second-busiest in the county.
Such projects, Wagoner said, typically cost between $100 million and $150 million. The firm aims to break ground in late 2026 or early 2027, to open in the first half of 2028.
The cost of the overall project may, conservatively, land in the $400 million to $500 million range, Tallen Capital Partners Founder, Chairman and CEO Terry Tallen said Friday.
The main, enclosed portion of the shopping mall, excluding the Sears and JC Penney’s buildings, would be demolished, Tallen said, though he added that his firm may try to acquire the JC Penney site.
Tallen said he’s in conversation with hotel companies, and “absolutely” believes there is a market for one there, particularly once families start traveling in for events at the sports complex.
Tallen said his firm may sell a parcel to a residential developer who would build the apartment complex, or develop it through a joint venture.
He envisions 12 acres on the southeast side of the property, with 250 to 350 market-rate apartments. Tallen said his firm has a history of turning around distressed properties in good locations.
“We have a reputation of coming in and doing some of the things that other people may not have the interest or appetite for. I like these tougher deals,” Tallen said. “This is a very challenged property — in a very good market.”
He said his firm has asked the city if there are local or state funds available to help developers demolish blighted property.
“If there’s a poster child for a blighted property, this is it,” he said.
Citrus Heights City Council is set to hear an initial agreement for the project Wednesday evening.
This story was originally published March 6, 2026 at 3:19 PM.
