Seizing on the downtown momentum sparked by construction of the new Sacramento Kings arena, developers said Monday they plan to turn the old Marshall Hotel into a 10-story Hyatt Place with condominiums or apartments on the upper floors.
Fairfield hotel firm Presidio Cos. said it hopes to start construction sometime next fall.
The Hyatt Place would replace the decaying Marshall, which closed over the summer. The five-story building had been a single-room occupancy hotel immediately to the east of Downtown Plaza, where the Kings have broken ground on their new $477 million arena.
Sushil Patel, Presidio’s managing principal, said the plan is to build approximately 130 hotel rooms, crowned by 10 to 15 apartments or condominiums. Some retail tenants are expected on the ground floor, he said.
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“The final design hasn’t been completed yet,” Patel said.
He declined to state a budget for the project.
The Presidio project comes as the downtown hotel and residential market begins to heat up in anticipation of the October 2016 scheduled opening of the arena.
The Kings themselves unveiled plans last month for a 16-story tower, adjacent to the arena, which will include 250 hotel rooms, 69 condo units, office space and retailing. The tower is supposed to open at about the same time as the arena.
Also, on a vacant lot southwest of the arena site, CalPERS is considering plans for a project that would combine some mix of residential, retailing and office space.
The new plans for the former Marshall site are in line with Presidio’s previous statements. In February, Peter Noack, a Sacramento developer working with Presidio, said the group was planning a hotel with as many as 17 stories on the Marshall property. The group said it had asked housing officials in Sacramento to help find new homes for the Marshall’s approximately 70 residents.