Sacramento site on K Street — just blocks from DoCo — to be housing, mayor says
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- City plans housing at 76,320 sq ft Hale Building on K Street near DoCo.
- City bought the Hale Building for $18.5 million about two years ago.
- Mayor McCarty says housing will diversify downtown assets and revitalize core.
New housing could come to a historic downtown Sacramento building the city bought about two years ago for $18.5 million, according to Sacramento Mayor Kevin McCarty.
McCarty divulged the 76,320 square-feet Hale Building, at 825 – 831 K St., could be used for housing during a recent townhall with The Sacramento Bee. Answering a question about revitalizing the urban core, the mayor said Sacramento must diversify its downtown assets.
“We own a building there on K Street, the Hale Building, and we just selected a developer to build housing right there,” he said.
Part of a settlement
The Hale Building, a three-story and 145-year-old building, sits just a few blocks away from the Golden 1 Center. The city of Sacramento acquired the site for $18.5 million from prominent developer Paul Petrovich.
Petrovich sued the city after the council blocked approving a gas station for his Crocker Village development in Curtis Park. The city settled the case with Petrovich for about $30 million, which includes buying the Hale Building for $18.5 million, paying a $7.5 million settlement and shelling out $3 million for retaining outside counsel, according to The Sacramento Bee’s previous reporting.
The 76,320 square feet mixed-use building is partially occupied by on the first floor and is home to real state transaction management software company Skyslope Inc. on the second floor.
Natural light bathes the empty third floor which could be an office space or residential units boasting sweeping views of Sacramento’s downtown, according to a request for proposals released by the city.
Negotiations ongoing
City spokesperson Jennifer Singer declined to offer more details on the deal because negotiations are still ongoing.
“We look forward to sharing more information soon about this exciting opportunity,” Singer wrote in an email.
The city likely overpaid a purchase price of $9 million, according to a Bee investigation which cited more several real estate experts.
Developers faced an Oct. 3, 2025 deadline to submit proposals which could transform a prime corridor.
The building’s name comes from its original occupant, the Hale Brothers Department Store, originally built in 1881.
This story was originally published April 3, 2026 at 5:00 AM.