Or so it would appear, as nearby sales are perking up, as this article from the Sacramento Bee reports, and, as the article notes, it is exciting:
Plans for a new Kings arena in Downtown Plaza have helped re-energize the downtown real estate market – prompting several deals, including one that would erase a downtown eyesore.
Two notable J Street sites, the historic Fruit Building at Fourth Street and a group of four boarded-up buildings near 10th Street, are either in escrow or in final negotiations for sale, parties involved in the deals say.
The sale of an office building at Seventh and L streets to a national investment company was completed two weeks ago.
Officials say the potential downtown arena was either the spark for the sale in each case, or a key driver in raising the price.
In a dramatic turn for the long-blighted 1000 block of J Street, an undisclosed Southern California investment company has agreed to buy the row of boarded-up storefronts for $7 million, said a real estate broker involved in the deal.
The company is talking about building a high-rise housing project of up to 25 stories on the block between 10th and 11th streets, said broker Kyle Mickiewicz of Cassidy Turley Real Estate. That may include apartments, or condominiums and a hotel.
City officials say they are delighted at the chance to fill a hole in the downtown area just blocks from City Hall and the state Capitol.
“J Street is one of the most visible streets downtown” and often the first glimpse of downtown Sacramento for out-of-towners, said city downtown development head Leslie Fritzsche.
She said the city and the building owners have spent considerable effort “getting them ready for this moment. The moment has come. It’s exciting.”