Remember when... 201 N Street Is For Sale

Lot X Sacramento - 201 N Street

It was only three years ago a mixed use high-rise was going to be built at 201 N Street. At one time it was to be 28-storys, and then later increased to 32 stories. Then last year around August the proposal was put on hold... and you know the rest of the story. The land is now for sale, 2.5 acres by the developer Southern Land Company and the asking price is $19.9 million. I wonder if the city of Sacramento had offered to subsidies this residential high-rise it could have been financially feasible? I am not surprised this was canceled, history has shown us again and again that Sacramento currently can't build a residential building over eight floors and be successful. These aren't my rules, this has been proven over and over again in the last several decades. The only exception to the rule is Penthouses at Capitol Park apartment built in 2007 above the Residence Inn Sacramento Downtown at Capitol Park. The top three floors of the fifteen story building is residential, maybe future proposals should consider this method instead of above above offices or one hundred percent residential. I hear the city is looking to also increase hotel rooms near the Golden One Center. Turton Commercial Real Estate 

The Elks Tower

The Elks Tower 921 11th Street, Sacramento

The Elks Tower is currently for sale asking $9.9 million. It’s considered Italian Renaissance Revival high-rise at 14-stories and 110,468 square feet. It’s considered a landmark building and a historic structure and when it was completed in 1926 at a cost of $1.5 million. Standing at 242 feet tall, it is taller than the California State Capitol by five feet.  

Colliers Sacramento Office Snapshot: Q2 2025

Colliers Sacramento Market Fundamentals

In looking at market indicators provided by ColliersSacramento, it appears to show that office downsizing and vacancy levels have leveled off. For the first time in several years, net absorption was positive. I hardly believe all is well again after only one quarter of optimistic demand, but overall activity appears strong with demand and rents and the State of California’s four day return to office in July 2026 has also provided some hope. The Colliers report shows a fragile office market, but several of the graphs show a hint of promise of recovery in the near or distant future.

Colliers Sacramento Historic Comparison

State Capitol Annex Project

Capitol Annex construction looking south from L Street

The new California Capitol Annex building will have 537,444 square feet of floor space over 8 stories at a cost of $1.3 billion and counting. Demolition was completed of the 1950's in 2023 on the East side of the Capitol building, which housed the Governor's office and legislator offices. The project’s plans include a new annex and an underground visitor center on the west side of the Capitol and an underground parking garage on the southern side.

Capitol Annex construction looking south from L Street

Rendering of how Capitol Annex could look

Rendering of how Capitol Annex could look

Rendering of how Capitol Annex could look

Rendering of how Capitol Annex could look

UC Davis Medical Center’s California Tower

Looking north from 45th St. on the medical center campus

On the eastern side of the existing UC Davis Medical Center, two tower cranes are in place to construct the 14-story hospital tower. At a total construction cost of $1.2 million (project cost: $3.7 billion), the building will connect to the existing Surgery and Emergency Services Pavillion to over 909,000 square feet of space in the new structure. When completed in 2030, the project will have a total of 334 beds, intensive care, and medical/surgical bed types; 12 hybrid operating rooms; and two rooftop helipads.

Looking east from Stockton Blvd. and X St.

Looking west at 45th and X Streets

Seen from Hwy. 50 and 65th St. looking west

Seen from Hwy. 50 going east

Demolition of Arco Arena Parking Lot

Arco Park in the foreground 

Over the weekend I was driving on Truxel and Del Paso Roads and noticed what appeared to be several giant concrete/asphalt piles while looking west towards the former Arco Arena location. My curiosity made me wonder if they were also removing the unfinished Arco Park stadium foundation. I found no such thing, the Arco Park foundation is still there but 2/3^rd of the parking lot that surrounds the former arena has been removed and roads for the new Innovation Park are being built. The most southwestern part of the land has a proposal for California Northstate University Medical Center project on 25 acers and is expected to generate $4.04 billion in regional economic output in the next 10 years as it’s developed.

1986 proposed Arco Park

Kaiser Permanente Medical Center Railyards Sacramento

With the ground breaking in March of this year, the 8-story Kaiser hospital in the River District appears to currently drilling piles into the ground as well as shoring up walls that are below grade. This $1.5 billion project is expected to competed in 2029.

365 Railyards Blvd. Sacramento, CA 95811

Proposed 700 J Street Hotel

700 J Street, Sacramento, CA 95814

Last month Hume Development purchased the Capitol Bank Building at 700 J Street for $11.06 million with the intention of converting the 1917, 7-story building into 107 hotel guest rooms. The proposed project would maintain the building’s current exterior which is granite-clad but repurpose the interior spaces. The plans and costs to begin the transformation have not been shared yet, but the building will be renamed the Hotel Elanor.

Colliers Sacramento Office Snapshot: Q4 2024

Facing record vacancy, Sacramento’s office market is now just below a record high. Also reported in Colliers International Sacramento office market report, the State of California is set to vacate a sizable amount of space next quarter and its shedding of 1.1 million square feet of leased space. Occupancy losses are outpacing new signed leases with the Department of Corrections moving out of 283,504 square feet at 151 S Street in Q1 2025 as well as others if you read the report.

After the highest sales activity in Q1 2020, both office volume and sales have been falling since then. Some of the available office space will be converting to alternative uses, the former historic Capitol Bank Building built in 1915 at 700 J Street was recently sold to Hume Development for $11.06 million and they have plans are to convert the 7-story building in to 107 guestrooms. Colliers forecast for 2025 is renewed optimism, with most large move out finished by Q2 2025, availability could stabilize.

Macy’s To Close In Downtown

Macy's Department Store at 414 K Street Sacramento, CA

Sacramento’s Macy’s department store downtown has been named one of 66 planed locations to close in the next three months. The K Street location was originally built in 1962 for $13 million and has been the anchor for the former mall and shopping area. CBS News Sacramento says there is significance interest in the location. The Greater Sacramento Economic Councils Berry Broome says there is a need for support from the state about economic development and policy infrastructure. The Citrus Heights Sunrise Mall Macy’s will also close as an underperforming store.