Real Estate News

A stylish downtown apartment is about to get bigger and fancier ... with a rooftop ‘spool’?

One of downtown Sacramento’s newer and more stylish apartment buildings apparently is not new or stylish enough, its owner says.

16 Powerhouse, a high-profile, high-rent apartment at the corner of 16th and P streets that opened just four years ago could undergo a major expansion that will include more “urban resort” style amenities.

The building’s new ownership group has submitted plans to build a five-story addition, attached to the current building, that will include 23 more apartment units. But equally as important, a company official said, are the new add ons.

Mitchell McKinzie of Demmon Family Partnership said the plan is to add a clubhouse, large rooftop terrace, a small gym, more parking, additional bike storage, and possibly something he’s calling a “spool,” which would be a small combination spa and pool, if it will fit and if the cost is not too great.

The project proposal comes as downtown housing developers are upping the ante in an attempt to attract people with more money who live downtown as part of a lifestyle choice to be near restaurants, entertainment venues, nightlife and work.

“The real driver for this project is (16 Powerhouse) doesn’t have the amenities a modern apartment does in 2020,” McKinzie said. “Competitors have gyms, pools, rooftop terraces. We want those.”

Notably, since 16 Powerhouse opened in 2015, another major project, Ice Blocks, opened a few blocks away with a fitness center, meeting rooms and onsite leasing office, as well as restaurants, a tap room, cocktail lounge, cafe, stores and other amenities as part of the project site.

Both projects charge premium rents that are becoming more typical downtown. 16 Powerhouse also has restaurants and a cafe on its ground floor. Two-bedroom apartments at 16 Powerhouse now rent for a minimum of $3,000, and some cost more than $4,000.

McKinzie’s company is proposing tearing down a small apartment building on P Street that has eight units to make room for the 16 Powerhouse addition. “We will tie onto the existing building and bring in an amenity package,” McKinzie said.

Residents of the current 50 units will have access to the new amenities. The company hopes to win city approvals and begin work sometime next year.

With escalating rents, the city recently imposed a rent control ordinance that went into effect this week.

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