Gentrifying areas in South Sacramento

13 Replies | Sacramento, California

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!

@Kyle Murphy congratulations on your progress with your investment!

Overall from our experience gentrification in this particular area is slow compared to other regions such as the Old North Sacramento Area which is popular for investors at this time.

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. 

@Kyle Murphy Joe covered a lot of the key points there.

This isn’t to say you won’t benefit from your investment, it just may not be the steep appreciation and gentrification you intended. We manage many properties in that area as well as surrounding areas. Feel free to share any details you have about the property if you want any information on what we are actively and personally seeing properties rent for in the neighborhood and our experience with how long vacancies are staying available.

Originally posted by @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. 

Hey, Joe-

I would be curious on your thoughts on Oak Park neighborhood. The neighborhood has gone through alot of gentrification; seems like every other house is being rehabbed. As far as location goes- right next to downtown and some of the areas largest hospitals 

Originally posted by @Dorian Young :
Originally posted by @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. 

Hey, Joe-

I would be curious on your thoughts on Oak Park neighborhood. The neighborhood has gone through alot of gentrification; seems like every other house is being rehabbed. As far as location goes- right next to downtown and some of the areas largest hospitals 

Oak Park and North Oak park has been turning over for awhile.  I was getting houses for $75-90k in 2015/2016.  I would have bought more and held them had I envisioned prices going where they are. The med center expansion will help kick start more development.  If you can get something at a good price there is a lot of demand but for me the bottom isn’t low enough right now and it’s still quite gritty.

That being said,  I have a 4plex on 37th I will be listing next week if anyone is interested. 
  

 

95823 near the Starbucks....is that on Stockton? Depending upon which side it could be a great neighborhood. There is a LOT of construction all around on Stockton currently. North of Fruitridge and West of Stockton is generally a good thing.

I agree with @Joe Bertolino about the path of progress. Essentially the long term plan is to connect Elk Grove to Rancho Cordova and if/when that happens and I am still alive I will ask my grandkids to make avail of the land that I will buy. But in the interim.......Natomas is where its at.

Reach out if you need any more help and congrats on your deal.

Cheers,

Tapan

Adding to this topic is todays news that California North State Hospital is in negotiations with Rancho Cordova for their new $1.2B teaching hospital after Elk Grove dropped the bag.  They will build up to 649 beds in two phases,  roughly the size of the UCD Med center that employs 10,000 staff.  

https://www.bizjournals.com/sa...

Rancho Cordova is going insane right now near the river. Lots of new builds boing up south of 50 as well. We'll see what kinda businesses infill. I know they are trying hard to push out the dog food factory south of 50 near Anatolia. Tons of land though, I see it going the same as have Folsom, Rocklin, Roseville, Lincoln, etc.