Developer Sets Downtown Stakes

SACRAMENTO-The Allen Group, a commercial and industrial real estate developer, is building a new office project and hotel in Downtown Sacramento.

The first phase of the master-planned office and hotel campus has broken ground and is expected to open next summer at the corner of 14th and L streets. This phase consists of about 180,000-sf of office space, rising 12 stories. It will cost an estimated $30 million.

Phase II will include a 14-story hotel on the opposite side of the property, located at 15th and K streets, adjacent to the convention center. The 255-suite hotel, which was just approved by the city, will break ground next spring and will cost an estimated $37 million. The developer had originally planned to build additional office space but recently incorporated a hotel into the plans instead. A hotel management group has not been selected yet though both Marriott and Hilton have expressed interest.

Anthony Giannoni, president of The Allen Group’s Sacramento division, says demand for office space in the heart of Sacramento’s business district that they moved forward on the project without any signed leases. Backing that up, Giannoni says it has since signed up tenants for half the building.

“This will not be the company’s only project in the area – The Allen Group’s residential division could follow downtown office development with large-scale projects in the Sacramento region,” says Giannoni.