In one vote this week, the Sacramento City Council set up the long-awaited revitalization of two high-profile downtown buildings.
The council voted on Tuesday to sell 731 K St., a building at the northwest corner of Eighth and K streets that has been vacant for nearly a decade. The development company that purchased the building said it plans to move a tech firm with 130 employees into the space.
The sale of that building will provide a pivotal influx of cash that the city wants to loan to the developers of a planned Hyatt Centric Hotel at the site of the former Hotel Marshall on Seventh Street. The City Council is scheduled to vote Sept. 12 on providing a $4 million loan to the Hyatt project, and the hotel’s developer said the loan will allow demolition of the Marshall’s interior to begin later this year.
The hotel should be open by late 2019.
“This project’s gotta go,” said Councilman Steve Hansen, who represents the central city. “It’s a blighted building and we’ve made a strong push to clean up sites that are blighted and make them better.”
Hyatt Centric is a “boutique” line of hotels operated by Hyatt. The downtown hotel will have 170 rooms, a sixth-floor terrace and a restaurant, said developer Guneet Bajwa. It will stand at 11 stories and its rear wall is just a few feet from the side of the Sacramento Kings practice facility adjacent to Golden 1 Center.
The new hotel will preserve the historic facade of the Hotel Marshall, a city landmark that closed more than two years ago.
Bajwa said the timing is now right for the Hyatt project to begin. The arena is about to enter its second year of operation and the city is planning to expand the Sacramento Convention Center five blocks away.
Though much smaller in size, the development of 731 K St. is also key to the city’s downtown revitalization efforts.
The three-story building was last used as an office for the federal Immigration and Naturalization Service. It is being purchased for $2.1 million by Cassadyne, a real estate company that owns nearly three dozen apartment complexes in midtown.
A city staff report said the company “has recruited a Sacramento-based technology firm to relocate its national headquarters to the second and third floors” of the building. Cassadyne is planning a “local grocer” or other retail use for the ground floor.