
Office building on T Street in East Sacramento sold for housing conversion
Source: Sacramento Business Journal
Brokers: Jon Lang
An East Sacramento office building described as a prime candidate for a housing conversion is headed that direction after a recent sale.
The two-story building at 3000 T St. is proposed to become 10 apartments, under a commercial plan review submitted to the city in late December.
“I think a residential conversion is certainly viable,” said Jon Lang, a senior vice president with Turton Commercial Real Estate who brokered the building’s recent sale. “It’s kind of languishing as an office building.”
Anchor Investment Firm LLC, with an address in Sacramento, bought the building in recent weeks for $1.075 million. Lang said the buyer is connected to Anchor Real Estate Investment, which specializes in developing small multifamily projects, according to its website.
Representatives of Anchor couldn’t immediately be reached for comment.
Plans filed with the city call for five apartments on each floor, ranging from 475 to 1,001 square feet and with one or two bedrooms. All exterior walls and load-bearing walls will remain for the conversion, according to plans.
Two existing parking spaces will be removed to create a 725-square-foot open space amenity for residents, and there will also be three interior private open spaces of 100 square feet each. Plans estimate the conversion cost at $892,000.
Built in 1981, 3000 T St. is just under 8,000 square feet. Lang said features such as central utility systems that are easy to connect to, plenty of parking and windows on all sides make it a good candidate for conversion.
Though no office-to-residential conversion has been pulled off yet in Sacramento, at least in recent years, several investors have filed plans to do so on mostly older, two- or three-story office buildings.
“At a lower price point, there’s a bigger pool of potential investors and developers,” said Lang, who said not all buildings are good candidates for conversions. Planned conversion of a former state office building in Downtown Sacramento, by Heller Pacific, stands out because that’s one of the few firms that can take on projects that big, he said.
Milagro Properties Residential I LLC, with an address in Gold River, was the seller for 3000 T St. Milagro Properties bought the building in 2017 for $1.1 million, according to real estate information website Reonomy.
Milagro Properties representatives couldn’t immediately be reached for comment.
Lang worked on behalf of the seller in the deal, while Jon Bias and Cherenna Wright of PDF Commercial represented the buyer.