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Business Journal: Apple Adding Elk Grove Office Space; OfficeMax, Rite Aid Leaving Midtown; Hop House Closes

Dennis McCoy / Sacramento Business Journal

Dennis McCoy / Sacramento Business Journal

Apple Converting Former DeVry University Site In Elk Grove

Apple may soon be adding more Sacramento area jobs. The tech giant has taken over a building near its Elk Grove campus, a building that used to be a DeVry University. The Sacramento Business Journal's Sonya Sorich says Apple has pulled permits to convert the site into office space.

"Apple hasn't commented on its plans for the site, but a representative from the city of Elk Grove confirmed it will be office space, not retail,” says Sorich. “The Cupertino-based company already employs more than 5,000 Apple and contract workers in the Laguna area of the city."

Apple has operated in Elk Grove since 1992, when it opened as a distribution center there. Now, among other things, the Elk Grove campus handles customer support, operational functions and information technology. Apple is the second-largest technology company in the Sacramento area, behind Intel's operations in Folsom.

Midtown Sacramento Losing OfficeMax And Rite Aid

A couple of large retail store sites in midtown Sacramento will soon be left vacant. Sorich says one store is selling off its inventory and the other is being stripped for parts.

"There’s a 'store closing sale' underway at the OfficeMax at 17th and J streets," says Sorich. “And the Rite Aid store, that closed earlier this year at 21st and S streets, will host a public sale of the former store's fixtures and equipment."

Analysts say both types of retail — office supply stores and drugstore chains — have faced challenges. Representatives from OfficeMax say they're closing the Midtown store as part of their strategic plan, while a Rite Aid representative says the local closure was necessary to support the chain's "overall business." So far, no plans have been announced about what will be filling either location.

Hop House Closes at El Dorado Hills Town Center

Just as the retail industry can be tough, operating a restaurant has its challenges. We saw that this past weekend when the locally-owned Hop House closed its doors at the El Dorado Hills Town Center. Sorich says Hop House shut its doors after almost five years at the center.

"The closure of Hop House led some people to wonder on social media if the decision was a result of rent issues," says Sorich. "But the restaurant's owner says that's not the case. Meanwhile, representatives of Mansour/Nagle Properties, which owns a majority of Town Center buildings, say they didn't raise rents for Hop House."

The restaurant's owner attributed the decision to a variety of factors, including declining sales numbers and even the rainy weather. He also listed factors that affect restaurant operators throughout the Sacramento area, like increased costs for labor and food. This is the second major restaurant change at the El Dorado Hills Town Center in recent weeks. Mexican restaurant Casa Ramos closed in March and will be replaced by Chando's Cantina.

 business journal

Steve Milne

Morning Edition Anchor & Reporter

Steve is the Morning Edition anchor for Capital Public Radio. He covers stories on a wide range of topics including: business, education, real estate, agriculture and music.  Read Full Bio 

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