Hotel in Sacramento, CA to convert to apartment complex
The developers plan to demolish a hotel in downtown Sacramento and build a large apartment complex.
The Holiday Inn Express site, located at 16th and G streets in Mansion Flats, will become 129 rental apartments, said Josh Wertlieb, director of Phoenix-based Harc Holdings.
The market-priced resort won’t include affordable units, but prices will be lower than some of the other new rentals in the area, Wertlieb said. Monthly rent for studios will start at less than $ 1,500 per month, Wertlieb said.
That’s less than the recently opened SKK Developments apartment building on 16th and H streets, where a studio rents for between $ 1,740 and $ 2,055, according to its website.
“We call it ‘accessible housing’,” Wertlieb said. “It’s not affordable, it’s not a government program, not Section 8, but the goal is to be a cheaper option.”
The complex, which does not yet have a name, will include studios, one-bedroom and two-bedroom apartments, with mostly one-bedroom apartments, Wertlieb said. It will also include a gym and indoor / outdoor dining and meeting space.
As part of the project, the developers plan to beautify Government Alley, which separates the new project from another new SKK apartment complex called Mansion Apartments, thus becoming a pedestrian street with a garden feel, Wertlieb said.
This will be the first development project in Sacramento for Harc Holdings. The area was attractive in part due to the low vacancy rates for rentals.
“One partner told us that over the last five or six years there has been a lot of growth in Sacramento and I think COVID, for better or for worse, has kind of accelerated Sacramento’s rise.” , Wertlieb said.
During the coronavirus pandemic, large numbers of Bay Area residents moved to Sacramento, seeking lower rents and more space to work remotely.
The ownership group – made up of Harc Holdings and Portland-based developers Adam Kowalski and Jeff Arthur – bought the hotel about a month ago for $ 16 million, Wertlieb said.
The hotel, which has been closed since the coronavirus pandemic hit last year, was built in 1979.
Demolition will begin this fall and the new complex will begin leasing at the end of 2022, Wertlieb said.