Move over Midtown
East Sac offers a little slice of value-add and a healthy dollop of urban demand with lower risk than other up and coming commercial corridors. This once-sleepy neighborhood has evolved into an eclectic mix of swanky historical residences and gritty industrial warehouses. With stately mansions, walkable retail corridors, and narrow tree-lined streets, East Sac has maintained a small town atmosphere while also attracting a new wave of high-end commercial tenants.
While national chains like Peet’s Coffee and Starbucks are closing up shop, local stalwarts like Pachamama Coffeebar, Chocolate Fish, and Bacon & Butter are thriving in this unique submarket which craves authenticity. High-caliber restaurateurs – namely Kru, OBO, Canon, Allora, and OneSpeed – draw patrons from all over the region with their specially-curated dining experiences. These restaurants are reuse projects in of themselves.
Creative office users have taken notice and are inserting themselves into centralized locations like The Cannery on Alhambra to take advantage of the concentration of amenities. Additionally, the construction of thousands of multifamily apartments and student housing is transforming the former industrial corner near 65th Street into a “University Triangle.” Within the next four years, 4,000 student housing units will be built within walking distance of campus near Folsom Boulevard south of campus. Developers are drawn to this area because high density housing can be very profitable near a growing university lacking in on-campus housing. The seven planned projects will turn a faded industrial nook into a teeming youthful village, offering students an area near campus to engage with the city.
Off market, there are a surprising number of under-valued under-utilized quirky buildings, vacant properties, and parking lots primed for development – particularly on Folsom Boulevard. The combination of long-time business owners retiring and aging property owners getting fed up with property maintenance results in loads of hidden opportunities. These properties can be cost-effectively repositioned to capitalize on the growing demand from retailers and office users, and of course residential tenants, for space on the Grid.
East Sac is now getting the attention it deserves.
Power Investment RE Team
4080 Truxel Road, Suite 100
Sacramento, CA 95834
CA BRE License #:01754434
KW BRE: 01485473