CenterCal Properties Poised To Take Over Elk Grove’s Project Elevate
Source: Sacramento Business Journal
Brokers: Ken Turton , Scott Kingston
CenterCal Properties LLC is set to take on Elk Grove’s bid for an urban-style destination, with development of what’s called Project Elevate starting as soon as next year.
Elk Grove City Council will vote Wednesday on a letter of intent with the El Segundo-based development company that includes a plan to sell the project site of 20.45 acres to CenterCal for an estimated $4 million.
“CenterCal specializes in mixed-use and town center development with an extensive construction and operational track record of projects similar in size and scope to Project Elevate,” the staff report for the agenda item states. “Staff and the Subcommittee believe that, given CenterCal’s experience, financing relationships, and operational expertise, they are most capable of delivering the Project in the shortest time frame and successfully operating the Project long term.”
A message left with CenterCal was not returned. Though the company’s website shows a number of projects across several western U.S. states, none are in the Sacramento region.
According to the staff report, city officials expect Project Elevate to include the following components:
- No less than 225 market-rate apartment units and 40 affordable apartment units.
- At least one 100-room hotel.
- No less than 10,000 square feet of office space.
- No less than 80,000 square feet of retail, particularly restaurants, soft goods stores and entertainment uses, especially “elevated,” new-to-market concepts.
- A half-acre public “village plaza” and programming and special events year round.
- Integration with nearby city features such as The Village retail center and District56 regional park.
- About 1,000 parking spaces.
- Future phases that could develop surface parking lots into more and increase overall project density.
The council’s approval of the letter would begin a 180-day negotiation period for a formal purchase agreement for the property, with the exact price to be determined by appraisal.
CenterCal would begin pursuing entitlements and building permits once a purchase agreement is executed, and escrow would formally close 30 days after those approvals are secured. Construction would start a year after close of escrow, according to the staff report.
If CenterCal doesn’t begin construction within a year or doesn’t complete the project, according to the report, the city would have the option to buy the property back at the final purchase price, plus any improvement or soft costs borne by CenterCal if they’re usable for another project.
Elk Grove and CenterCal would split conceptual planning costs for up to $250,000 from each side. Any costs above $500,000 would be paid by CenterCal.
City officials have long sought an urban-style development for the Project Elevate site, undeveloped land at Big Horn and Elk Grove boulevards. A city official once described the goal as taking the hip urban vibe of a neighborhood in Midtown Sacramento and putting it in Elk Grove.
Houston-based development company Hines signed on to carry out the project in 2022, but withdrew about nine months later, citing disagreements with the city over vision and timing.
The city hired Turton Commercial Real Estate to help find development firms to partner on the project.