Gentrifying areas in South Sacramento

[Kyle Murphy]

I’m currently in contract on a duplex in the 95824 zip code near Fruitridge and Stockton Blvd. Curious if any Sacramento investors or property managers have any thoughts on this area or feel particularly bullish / bearish on it. Driving around a bit I saw a brand new Starbucks just opened up, which is probably a good sign for the neighborhood to start / continue changing. Any insight is very much appreciated!

[Joe Bertolino]

Originally posted by @Kyle Murphy:

@Joe Bertolino when you say path of progress, what trends are you seeing and where do you see the epicenter? I see a general trend south from oak park and Tahoe park, but I know that’s pretty high level.

Natomas,  West Sacramento,  parts of Rancho Cordova.  Citrus Heights down the road if the Sunrise Mall redevelopment takes place.  Where are new employers coming to and where are you seeing significant public money flowing.  Keep an eye on the Business Journal to see public projects  and employers.  Watch where the money and jobs are flowing.  Significant development,  not a Starbucks.  Starbucks recently closed 400 stores,  they have saturated every natural market so they are reaching out more and more.  

In Natomas you have Centene and others bringing in 10,000+ jobs,  the zoo likely moving to the old Arco Arena site,  major warehouse and distribution centers at Metro Air Park, likely light rail to the Airport.  

In West Sac you have the new I street bridge connecting it to downtown,  CalStrs adding another tower,  multiple housing projects, the $200m riverfront California Indian Heritage Center, etc.  

Rancho has a new community center, new hospital,  expanded Los Rios comminuty college campus,  huge redevelopment at Aerojet bleeding into Folsom Ranch.  

There are a bunch of plays all over the region,  I just don’t see much upside in that part of South Sac, North Highlands, Rio Linda, etc.  It’s cheap for a reason.  There is no reason for public and private money to pour into those areas.