One of Sacramento's newest mixed-use projects at 16th and P streets, 16 Powerhouse, sold for $32.5 million this week. That brings the value of the property to about $570,000 per-unit. The Sacramento Business Journal's Digital Editor Sonya Sorich says the deal could boost confidence in upscale housing projects in the central city — even in the midst of an affordable housing shortage.
"Rents at 16 Powerhouse are among the highest of any property in the central city, but the property has been at or near 100 percent occupancy since it opened in the summer of 2015," says Sorich.
The buyer is a multi-family housing developer called Demmon Partners. The 50 units in the building are relatively large, averaging more than 1,000 square feet. The building also has parking and ground-floor retail space.
A new restaurant called The Diplomat Steakhouse will soon be opening in downtown Sacramento. It'll be in the spot previously occupied by Chops, across L Street from the state Capitol. Sorich says it'll be the The Diplomat's first location.
"And it's actually envisioned as the first of multiple locations," says Sorich. "The owners are apparently already looking for a site in Roseville. And when it opens downtown, The Diplomat will join at least one other big steakhouse in the downtown Sacramento area — that's Echo & Rig Butcher and Steakhouse in the Kimpton Sawyer Hotel."
The Diplomat could open to the public in April. And there are plans to eventually open a private membership club in the restaurant's basement.
A new co-working space called CoWo Campus is scheduled to open soon in midtown Sacramento. The business will charge people to use its offices, event spaces and for food and drinks. But Sorich says rent will be free.
"The business partners behind the project say the cost of renting space can scare some startups away from co-working spaces, and they want to change that," says Sorich. "Free rent could also help this business attract diverse types of concepts" such as entrepreneurs focusing on fashion, art, music and food, in addition to the tech startups that traditionally gravitate toward shared workspaces.
CoWo Campus is near 21st and O streets. It's expected to open in the next few days.