By Jon Peterson
San Diego-based Kitchell Development Company has placed on the market for sale a potential redevelopment opportunity for the 1.04-acre site located at 2101 K Street in Sacramento. The asking price is $9.5 million, according to the property’s offering document. This price would amount to $210 per square foot of land.
The seller has owned the property since 2015, and it has chosen the Sacramento office of CBRE to be the listing agent on the sale of the asset. The people working on the transaction are Randy Getz, executive vice president, and Tony Whittaker, senior vice president of the firm. CBRE declined to comment when contacted for this story.
Presently, the lot has a 25,600 square office building on site, which is fully leased to the legal research firm Lexus Nexus. The lease in the property runs through October of this year, the tenant carries the burden of paying taxes, insurance, landscaping janitorial and utilities.
The asset is currently zoned for C-2-SPD. This would allow the property to be redeveloped into a multi-story office, retail or mixed-use with a residential component up to 85 feet in height. The possible capital sources that would be interested in a property such as this one would likely be local or regional development firms.
The amount of residential development that could be constructed on the site is not determined at this time. If the new owner decides to pursue constructing workforce housing, additional units would be allowed on the site than if the property was made into market-rate housing, according to sources familiar with the apartment market in Sacramento.
The location of 2101 K Street is part of the Midtown neighborhood of Sacramento. The site is one block from the Midtown Arts, Retail & Restaurant Scene Building, which is the cultural and entertainment hub of the neighborhood. The property is within walking distance of every major downtown office building, most state office buildings and many shopping and dining venues. It is also about 1.2 miles from the Golden 1 Center, which is home to Sacramento’s NBA franchise and a major entertainment center for the city. The arena hosts over 200 concerts and other non-sporting events on an annual basis.
The overall Sacramento urban apartment market has been a strong performer. According to published reports, the market’s rental rate growth in 2021 was 13.7 percent, which exceeded the national average.