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731 K STREET
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OFFERINGT HE
Turton Commercial Real Estate, as exclusive advisor to the City of Sacramento Economic Development Department, is pleased to present the opportunity to acquire the 100% fee simple interest in the building located at 731 K Street (the “Subject Property”).
The Subject Property represents one of the most high-profile redevelop-ment, investment, or owner-user opportunities in the Downtown grid, which has been touted as of the most robust urban redevelopment markets in the country. The 22,408 SF building is comprised of three floors totaling 16,793 RSF and a finished basement measuring 5,565 RSF situated on a 5,565 SF parcel of land at the northwest corner of 8th and K Streets. The building features two operable elevators; one of which only services the basement and ground floor and one that services all four floors of the building.
The Subject Property is ideally positioned just one block from the pedestrian entrance to the Golden 1 Center, three blocks from the front lawn of the State Capitol, and five blocks to the Convention Center. Additionally, the Subject Property can take advantage a myriad of amenities, community centers, and transportation and parking options within walking distance that promote an eclectic, urban work-life balance.
The Subject Property is zoned C-3-SP, which can accommodate a variety of dense commercial uses including, but not limited to, residential mixed-use, retail, and office. The Subject Property is located within the Capitol View Protection zone, permitting a maximum building height of 400 feet, and within the Special Planning District, which mandates 75% of retail frontage for an entire city block.
731 K STREETADDRESS:
APN:
YEAR CONSTRUCTED:
YEAR RENOVATED:
PARCEL SIZE:
NUMBER OF FLOORS:
ZONING:
CONSTRUCTION TYPE:
HOUSING DENSITY:
MAXIMUM HEIGHT:
5,565 SF (.13 Acres)
Four (4)
C-3-SP
Steel Frame and Concrete
450 dwelling units per acre
400 Feet
PARKING:No On-Site Parking
731 K Street, Sacramento CA 95814
006-0096-024-0000
1961
Early 200’s
• 22,408 Total Square Feet (“SF”)
• 16,793 Rentable Square Feet (“RSF”) (Includes finished Basement)
• 5,565 square foot parcel of land at the corner of 8th & K Street (.13
Acres)
• High Visibility K Street Corner Frontage
• 1 block from the primary pedestrian entrance to Golden 1 Center
• 3 blocks from the front lawn of the State Capitol
• 5 blocks from the Sacramento Convention Center
POWER:1600A, 120A/208A, 3 Phase
FIRE SPRINKLERS:Basement Only
LOAD FACTOR:13%
BASEMENT:
FIRST FLOOR:
SECOND FLOOR:
THIRD FLOOR:
TOTAL GROSS BUILDING AREAEXCLUDING BASEMENT
16,783 RSF
5,615 RSF
5,513 RSF
5,640 RSF
5,640 RSF
TOTAL GROSS BUILDING AREAINCLUDING BASEMENT
22,408 RSF
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SUBMARK ETL OCAT ION A ND
“The K Street Grid” is the Downtown micro-market bounded by 3rd Street
to the west, 12th Street to the east, J Street to the north and L street to the
south. For two decades public officials have been strategically acquiring
property, instituting redevelopment guidelines, establishing development
incentives and making public policy changes to attract retail, residential,
and office tenants while simultaneously encouraging high density projects.
Through 2013, the results of these efforts had been slow but steady.
The redevelopment of the Citizen and Sheraton hotels (at 10th and 12th on
J Street respectively), The Forum Building at 9th and K Street, 630 K Street
and the former Woolworth’s, and Roos Atkins department stores at 10th and
K Street being the foremost examples. In 2014, these efforts were expedited
by the approval of the new multi-purpose 780,000 SF, 17,500-seat Golden 1
Center to be developed in the former Downtown Plaza.
Now, the Golden 1 Center has proved to be a transformative project for
downtown. The new “Home of the Sacramento Kings” is expected to attract
over 1.7 million attendees to a projected 190 annual events and generate
over $230 million in annual economic activity. As a result, developer interest
in properties surrounding the Golden 1 Center has been robust. The two
most significant development projects, the Kimpton Hotel and Downtown
Commons, are under construction and will be complete during the summer
2017. The Kimpton will feature 250 hotel rooms, for-sale condominiums, and
office and retail space, while the Downtown Commons (“DoCo”) boasts over
600,000 SF of retail space.
Additionally, there are no less than five significant existing building
renovations underway including 501 J Street (Kaiser renovating 170,000
SF building for medical offices), 930 K Street (mixed-use redevelopment),
800 K/L (ground up mixed-use development with 148 apartments), 830 K
Street (44,000 SF office building vacant) and the “700 Block” (mixed use
on the entire south side of K Street from 7th to 8th Street). Other potential
renovation projects include the Hyatt Hotel (renovation of the former
Marshall Hotel at 7th and L Street), 818 K Street (48,000 SF vacant), 831
L Street (50,000 SF vacant), the NE corner of 10th and J Street (25,600
assemblage/demolition and reconstruction project) and SW corner of 11th
and J Street (32,000 SF assemblage/demolition and reconstruction project).
Golden 1 Center
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Marshall Hotel (Planned Hyatt Boutique Hotel)
Former Greyhound Station (40,000 SF Former Retail)
700 Block (137 Apartments, 65,000 SF Retail)
25,600 SF Parcel, 50,000 SF Vacant Bldg
50,000 SF Vacant Bldg (Planned Office over Retail)
44,000 SF Vacant Bldg (Planned Office over Retail)
32,000 SF Vacant Bldg (Planned Office over Retail)
48,000 SF Vacant Bldg (Planned Office over Retail)
Subject Property
Proposed Developments
Underway Developments
For more development information, contact Ken Turton.
STATE CAPITOL
CONVENTION CENTER
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Kaiser Permanente
Vanir Building
The Metropolitan
Cathedral Square
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800 Block Redevelopment
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PA R K ING & T R A N S POR TAT ION
The Subject Property can take advantage of over 1,000 monthly parking
stalls allocated between private and public parking garages within a five
block radius of the Subject Property. Most notably, The Renaissance Tower
located at 801 K Street, provides month-to-month parking directly across
the street. Just next door, at 1010 8th Street, a private garage provides
convenient monthly parking to nearby tenants for market rate. The Capitol
Garage (10th and L Street) is located three blocks from the Subject Property
and the City Hall Garage (10th and I Street) is located just 4 blocks away.
In addition to the monthly parking stated above, the new City of Sacramento
Parking Management System is committed to finding and reserving
additional parking stalls in a variety of garages and lots upon request.
The Subject Property is also conveniently located less than 1 block
from the 8th and K Street Sacramento Light rail station that services all
three RT lines. From the Subject Property, one can reach outlying stations
at the Sacramento Train Station, Township 9, Citrus Heights, Folsom, or Elk
Grove without switching trains. Furthermore, Downtown patrons can park
at isolated lots located throughout the Midtown and Downtown grid for a
fraction of the monthly cost and then utilize light rail to efficiently commute
to the Subject Property.
SUBJECT PROPERTY
P
P Nearby Parking
P
P
P
Light Rail Stop
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RENAIS SANCEURB A N
While the Golden 1 Center has expedited urban renovation on the K
Street Grid, the renaissance of Sacramento’s urban sectors surrounding
the K Street Grid has been underway for several years now. Residential
migration to the higher density urban cores is a phenomenon easily
recognizable in Tier 1 population centers like New York, Chicago,
Philadelphia, and in California, Los Angeles, San Francisco and San Diego.
This same pattern is now beginning in Tier 2 population centers like
Portland, Denver, San Antonio and Sacramento.
The urban core of Sacramento (Downtown and Midtown) is the most
desirable business location the Sacramento region and easily boasts the
lowest combined commercial vacancy rate, hovering between 5 – 8%.
This figure is impressive when factoring in many buildings marketed as
“available” that are functionally obsolete and non-compliant. The urban
core is the perfect fusion of multi-generational locally owned business,
organic youth infused retail and services, a healthy dose of carefully
selected national and regional retailers, the best restaurants east of
the Bay Bridge, an eclectic mix of high-end demographic occupations all
magically embedded in a landscape of unique older buildings and mature
trees and flora.
Developers are now highly focused on the “cool” vacant buildings
and key infill properties within the downtown grid to further capitalize
on this increasing demand. Unique historical buildings and warehouses,
multi-story downtown midrise structures with impressive window lines
and ceiling heights, multi-generational businesses with local ownerships,
mature landscape with generous tree lines and an impressive, yet eclectic,
residential and workforce demographic create the foundation for amazing
opportunity. Having the Capitol of the world’s 7th largest economy located
five blocks from the new Golden 1 Center provides even more demand and
market stability.
Office and retail vacancy has traditionally hovered at a steady 8 –
11%, much of which is due to chronic vacancy in the form of non-compliant
blighted buildings. Even then, residential vacancy is virtually non-existent.
Recent new construction projects have leased up faster than pro-forma.
Virtually every vacant building within the Grid or immediately surrounding
area has activity. If one looks at the history of urban development in
Sacramento along with current composition of activity, momentum and
demand, the most attractive opportunities reside within the Grid, and the
opportunity with the most versatility, best location and greatest upside
with least risk are properties located on the K Street grid.
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Golden 1 Center & Doco(Arena completed, 300,000 SF Retail, 100,000 SF office, hotel underway)
800 Block(52,800 SF of developable land)
Railyards(Planned Office & Residential over Retail including a new Kaiser hospital and MLS Stadium)
Proposed Developments
Underway Developments
2 700 Block (137 Apartments, 65,000 SF Retail)
5 ICE Blocks(55,000 SF Office, 70,000 SF Retail, 160 housing units)
6 Q19(72 housing units, 1,985 SF Retail)
7 Grocery Store / Mixed Use(50,000 SF, 150 housing units, with potential grocery strore concept)
M A JOR
PRO JEC T S
731 K
For more development information, contact Ken Turton.
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& PROCESSPRICING
Offers are due by Friday, May 12, 2017 by 5:00 PM PST.
Prospective buyers will be provided a standard form of the
Purchase and Sale Agreement (for information and comment), a
basic term sheet template along with a property condition report
conducted by Market 1 Builders in October 2015.
Minimum offer price: $2,500,000
Offers are due by Friday, May 12, 2017
Terms included on the term sheet will include:
• Purchase Price
• Initial deposit
• Investigation Contingency Period
• Finance Contingency Period (if any)
• Any additional contingencies
• Additional Deposit upon waiver of contingencies
• Project Description/Intended use
• Proof of funds and Loan Commitment (if lending is required)
• Resume of Buyer or Development Team
2409 L STREET, STE 200, SACRAMENTO, CA 95816916.573.3300 TURTONCOM.COM
AARON MARCHANDD.R.E. LIC. 01711650916.573.3305A [email protected]
KEN TURTOND.R.E. LIC. [email protected]
JON LANGD.R.E. LIC. 01934394916.573.3302JONL [email protected]
JOHN MUDGETTD.R.E. LIC. 01765754916.573.3306JOHNMUDGET [email protected]
