Real Estate News

Sacramento to offer up former redevelopment properties

Several high-profile parcels near the Kings arena construction site could head to market within the next few months, creating new development opportunities in Sacramento’s hot downtown core.

Among the properties: the infamous “hole in the ground” at Eighth and K streets, the historic three-story Bel-Vue Apartments building at 809 L St., and the former restaurant and nightclub space at 815 L St.

Those properties are among 77 that were controlled by the city’s redevelopment agency before the statewide dissolution of redevelopment agencies in 2011.

The city, serving as a “redevelopment agency successor,” is handling the sales locally and took the first step in that process this week when it accepted bids from about a dozen brokerage companies interested in evaluating and marketing the properties, Assistant City Manager John Dangberg said Wednesday.

One or more brokers will be selected by June 9 and sales of the first properties could start a couple of months after that, Dangberg said.

Technically, the city is only selecting an “on-call” list of brokers to help with future sales. But Dangberg made it clear the city wants to move quickly on the highest profile downtown parcels.

The sales will bring some cash to the city, though more will go to the city and county. But Sacramento stands to benefit from development of land – particularly on K and L streets – that has long been underutilized.

“We’re expecting strong and spectacular proposals for development (there) right near the epicenter of energy in downtown,” Dangberg said.

He noted that two privately owned downtown sites – on J Street at 10th and 11th streets – also could get new developer attention as the momentum of the arena construction continues to spread.

Besides the high profile downtown locations, the former redevelopment sites to be offered for sale are mostly in Oak Park, Del Paso Heights, North Sacramento and near the former Army Depot.

Leslie Fritzsche, a city economic development manager, said she expects a lot of developer interest for some parcels – especially those near UC Davis Medical Center and others along Del Paso Boulevard in North Sacramento.

The sale of the various downtown properties have one potential complication. The Sacramento Kings were awarded a right of first refusal on the properties as part the city’s overall subsidy of the arena project.

“If we find someone who is interested, the Kings group would have an opportunity to match that offer in kind,” Fritzsche said.

She said there have been no recent discussions with the Kings owners regarding their interest in the properties. “They have a lot on their plate right now with that other hole in the ground,” she said, referring to the arena construction site.

Call The Bee’s Bob Shallit, (916) 321-1017.

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