With construction on the new Kings arena chugging along two blocks away, developer Moe Mohanna said he is moving ahead with his plans to rehab three buildings he recently purchased on downtown Sacramento’s K Street.
Mohanna and his daughter, Nikky, have begun seeking tenants for the three buildings near the corner of 10th and K streets.
The developers purchased the properties in June for $5.3 million and plan to put between $3 million and $4 million into the buildings, said Nikky Mohanna. Turton Commercial Real Estate will market the buildings to office and retail tenants.
“These buildings have been vacant a long time and we’re trying to find the right tenants who fit into what’s happening downtown,” said Nikky Mohanna.
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Moe Mohanna owns several properties on or near K Street. City officials tried for years to purchase some of his properties on the 700 and 800 blocks for redevelopment, but those negotiations stalled and the city filed an eminent domain lawsuit against Mohanna in 2008. The city later agreed to pay Mohanna about $18 million for nine buildings.
Nikky Mohanna said her family’s firm has received interest from potential office and retail tenants for the three buildings on the 900 block, but wouldn’t identify those parties. The buildings include 24,000 square feet for retail use and 10,000 square feet for offices.
The buildings are in a prime location. The bordering 1000 block of K Street has been transformed into a lively stretch of entertainment venues. At the other end of K Street, developers are building apartments, shops and restaurants on the 700 block, much of which Mohanna used to own. Beyond that, at the former Downtown Plaza site, construction is moving along on a new $507 million arena.