A downtown Sacramento hotel will be rebuilt into apartments. Here are the details
Developers plan to convert a downtown Sacramento hotel into a large apartment complex.
The Holiday Inn Express site, at 16th and G streets in Mansion Flats, will become 129 rental apartments, said Josh Wertlieb, manager of Phoenix-based Harc Holdings.
The market-rate complex will not include affordable units, but the prices will be lower than some of the other new rentals in the area, Wertlieb said. Monthly rent for studios will start at under $1,500 a month, Wertlieb said.
That’s lower than the SKK Developments apartment building recently opened at 16th and H streets, where a studio rents for $1,740 to $2,055, according to its website.
“We call it ‘attainable housing,’” Wertlieb said. “It’s not affordable, it’s not a government program, not Section 8, but the goal is to be a less expensive option.”
The complex, which does not yet have a name, will include studios, one-bedrooms and two-bedroom units, with mostly one-bedrooms, Wertlieb said. It will also include a gym, and an indoor/outdoor dining and meeting space.
As part of the project, the developers plan to beautify Government Alley, which separates the new project from another new SKK apartment complex called Mansion Apartments, making into more of a pedestrian-friendly street with a garden-like feel, Wertlieb said.
It will be the first development project in Sacramento for Harc Holdings. The area was attractive partly due to the low vacancy rates for rentals.
“We were told by a partner that over the last five or six years, there’s been a lot of growth in Sacramento and I think that COVID, for better or worse, it sort of accelerated the rise of Sacramento,” Wertlieb said.
During the coronavirus pandemic, a slew of Bay Area residents have been moving to Sacramento, seeking lower rents and more space to work remotely.
The ownership group — composed of Harc Holdings and Portland-based developers Adam Kowalski and Jeff Arthur — purchased the hotel about a month ago for $16 million, Wertlieb said.
The hotel, which has been closed since the coronavirus pandemic struck last year, was built in 1979.
Demolition will begin this fall, and the new complex will start leasing at the end of 2022, Wertlieb said. The hotel will not be completely torn down.
This story was originally published October 2, 2021 at 5:00 AM.
