Hotels, Restaurants Take Hit With Amgen Announcement
Sacramento's tourism industry took a hit of around $3 million this week. That's how much money in economic benefits the city sees each time The Amgen Tour of California bicycle race comes to town ... and this week, Amgen announced it was taking a year off. The Sacramento Business Journal's Sonya Sorich says the event apparently never made money for the organizers.
"The 700-mile bike race is expensive to run, and organizers say the competition lost millions of dollars,” says Sorich. “And even though Sacramento saw economic benefits from hosting the race, that hasn't necessarily been true for all host cities."
Those cities must spend money to host the race and provide security and road closures. Event organizers say they need time to rethink the race, look at other business models and re-evaluate their options for whether to bring it back in 2021. The bike race has drawn 40,000 people to downtown Sacramento in the past. Host cities can see benefits as riders, support staff and fans book hotel rooms and eat in local restaurants.
Wells Fargo Center Sells For Nearly $200 Million
Sacramento's tallest building - the 29-story Wells Fargo Center at 400 Capitol Mall - has sold for $198.8 million. Sorich says that's a market record for overall price.
"The buyer was a real estate investment trust based in Singapore,” says Sorich. “It's worth noting that this office high-rise most recently sold in 2016 to Starwood Capital Group for $175.5 million, which was also a record at the time."
Analysts say these kind of buildings will continue to appeal to buyers, because we're not seeing new, high-quality office space in downtown Sacramento. The city hasn't seen a new office tower built on a speculative basis in more than a decade. The most likely site for a new one, at 301 Capitol Mall, is in limbo after property owner CalPERS recently changed development partners.
New Eatery, Nightclub Coming To 10th And K
There will soon be another new place to eat in downtown Sacramento. It'll be at 10th and K streets - a well-known restaurant space that's been empty for almost a year. Sorich says the site most recently housed a short-lived restaurant called The Grid.
"Before that, it was the Bennigan's restaurant chain, and it previously was Cafe Bernardo and KBar,” says Sorich. “Now, a local operator plans to bring three concepts to the space: a cantina, Latin nightclub and Brazilian steakhouse."
The owner says he knows the downtown restaurant scene is competitive, but he thinks his idea is strong. He hopes to open in early December. The most recent business there, The Grid, closed in January.