Real Estate News

Developer bets on downtown Sacramento’s future and plans new large apartment building

When downtown Sacramento workers return to offices in large numbers, there should be plenty of new housing options for those who want to live near where they work.

The latest proposal is an eight-story apartment building at the corner of 11th and I streets, one block from the California EPA building and within a few blocks of City Hall and other public offices.

David Riccitiello, the project manager for developer the T.A. Group, said the firm believes “that’s an emerging area for residential uses downtown.” He said the target audience for residents of the planned building “primarily office workers and people working at the state or city level.”

“Once office workers start to return back to the office, I think that’s going to create more activity,” he said.

The 204 apartments will be rented at market rates. However, Riccitiello said the developer “hopes to hit the middle of market with moderate-income and workforce housing.”

“We think there’s a demand for that housing,” he said. “It address a need for folks working in the downtown area for a price point that’s more affordable.”

A planned eight-story apartment building in downtown Sacramento, Calif., would include art work facing I Street near 11th Street.
A planned eight-story apartment building in downtown Sacramento, Calif., would include art work facing I Street near 11th Street. The T.A. Group, LPAS Architecture + Design

The city of Sacramento has a severe need for housing to middle income earners. According to an analysis by the Sacramento Area Council of Governments, the city needs to add more than 8,500 of those housing units this decade to meet demand.

Roughly 100,000 people worked in downtown Sacramento before the COVID-19 pandemic struck and emptied offices around the world. Workers have been slow to return to downtown office buildings; many state departments continue to rely on remote work, although some large agencies – including CalPERS and the state Franchise Tax Board – have required employees to report to offices one to three days per week.

Even as few office buildings have sprung back to life, developers seem optimistic about downtown’s future. Riccitiello said his firm is “pretty bullish on that area.”

Just two blocks away, construction is well underway on a six-story apartment building on the 1000 block of J Street. Other major apartment buildings are planned near Southside Park and near the 16th Street corridor.

The T.A. Group hopes to break ground on the I Street project in 12 to 14 months, Riccitiello said. The building will have features for those on hybrid work schedules; some apartments will have room for a small office and planned retail on the ground floor could have co-working space.

The proposed apartments include 57 studios, 102 one-bedroom units and 45 two-bedroom residences.

The T.A.. Group has proposed constructing an eight-story apartment building with 204 units at the corner of 11th and I streets in downtown Sacramento, Calif.
The T.A.. Group has proposed constructing an eight-story apartment building with 204 units at the corner of 11th and I streets in downtown Sacramento, Calif. LPAS Architecture + Design, the T.A. Group

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This story was originally published September 12, 2022 at 12:30 PM.

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Ryan Lillis
The Sacramento Bee
Ryan Lillis was a reporter and editor for The Sacramento Bee.
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