River District Q4/Annual Market Report 2022

Page 1

Q4/ANNUAL MARKET REPORT 2022

SACRAMENTO, CA
2. Executive Director's Message 3. Year in Review 4. Development Map 5. Development Summary 6. Residential Market 7. Industrial & Commercial 8. Tourism & Hospitality 9. Riverfront & Railyards 10. Clean & Safe 11. Financial Report 12. About the River District TABLE
CONTENTS info@riverdistrict.net WWW.RIVERDISTRICT.NET 1
OF

EXECUTIVE DIRECTOR'S MESSAGE

It was a hot Sacramento summer day when I reported for my first day of work as the new Executive Director of the River District back in July I was new to the city and almost everyone I met shared my excitement over the potential of this emerging neighborhood, telling me I had arrived at just the right time Now, having spent nearly a half of a year here, I can honestly say that I am honored to be at the helm of this organization I believe that the River District is the future of Sacramento, and because we are building it right now, we have the opportunity to create a truly world-class place That's a lot to live up to, considering that Sacramento was recently named the best place to live in California by Forbes Magazine, taking into account crime rates, cost of living, and available activities.

We're making room for food and agribusiness entrepreneurs with the proposed Alchemist Public Market. Alchemist's programs to help train, equip, and empower under-resourced entrepreneurs to start their own food businesses.

We're making room for visitors to see more and do more, with the announced Caption by Hyatt Hotel, the Hanami Line cherry blossom park, and the newly opened, wonderful SMUD Museum of Science and Curiosity

We're making room for thousands of State employees to thrive at the Richards Boulevard Office Complex, and building homes for people of all income levels at projects like Mirasol Village, the Grower's District, Track 281 Apartments, and Township 9

Most exciting to me, we are making connections between those who have spent many years here in the River District with those who - like me - are just arriving, ready to find their futures. The River District is truly where old meets new, where teamwork meets technology, and of course, where our two greatest natural resources - the American and Sacramento Rivers - come together.

DEVIN STRECKER, LPM

Our Vision: A vibrant, mixed-use urban community with an eclectic mix of residential and commercial land uses topped off with riverfront views and a variety of parks, plazas and open space.

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TIME TO SHINE

It was a time of growth and new development in the River District in 2022, as several projects were completed or enjoyed their first full year of business.

Touchstone Brewing Co. offers a rotating tap of unique beers and offers cans for take-home

SMUD Museum of Science and Curiosity renovated a former PG&E power station built in 1912 into a world class hub for science education, exploration and promotion. While day time usually sees the museum full of young people on school field trips, the Museum opens its doors to the 18+ crowd for their exclusive MoSAC Night events, as well as their MoSAC Mixers each month.

Touchstone Brewing Co. is an extension of the popular Touchstone Climbing gym, Pipeworks, located at 116 N. 16th St. The brewery opened its doors in late 2021, and is currently completing construction on its own 2,600 SF taproom and restaurant, Pintworks.

Until recently, Sacramento Fire Department's Station 14 was housed in the second-oldest operating firehouse in the city. On December 5, the brand new Station 14 was officially opened at 1400 N. B St. in the River District!

River District Park is a brand new community space with a basketball court nd other amenities such as a built-in ng pong table and futsal court.

In September, two large, winged sculptures were installed in the River District on Richards Blvd at 12th St. Created by artist Vicki Scuri, the works are part of the City of Sacramento's metamorphosis-themed public art project The sculptures join seven new murals that were painted throughout the 12st Street corridor The project was funded through the US Dept of Housing and Urban Development (HUD) Choice Neighborhood Initiative, in a partnership with Sacramento Housing Redevelopment Agency (SHRA)

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Devin Strecker, River District Executive Director, spoke at the ribbon cutting event for the new Fire Station 14.

DEVELOPMENT

rds Blvd Office Complex topped cramento Business Journal's 2022 k of Lists construction projects wntown) ranked by estimated ruction cost. At $940 million, the t includes 1.25 million square feet ffice space with four towers, a g structure, three-story walkway ween both north towers and a nd-level timber bridge; includes lic open space and walkways.

Recently Completed Under Construction Proposed

Summary on following page

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4 20 21 5 RICHARDSBLVD RICHARDSBLVD N. BST. N. BST. I5 I5 RAILYARDSBLVD RAILYARDSBLVD N.12THST. N.12THST. N. 16TH ST. N. ST. N. 7TH ST. N. 7TH ST. N. 5TH ST. N. 5TH ST. N. 10TH ST. N. 10TH ST.

Under Construction

Proposed

1 River District Park 1039 N. D St. 19289 sq ft Public Park Completed Q2 2022 2 SMUD Museum of Science & Curiosity 400 Jibboom St. 50,000 sq ft Museum Completed Q3 2021 3 Fire Station 14 1400 N. B St. 10,374 sq ft Municipal Completed Q4 2022 4 Touchstone Brewing Co. 116 N. 16th St. na Commercial Completed Q4 2021 5 Mirasol Village + Community Garden 1390 Swallowtail 100,000 SF Residential Completed Q3 2022 WWW.RIVERDISTRICT.NET 5 DEVELOPMENT
6 Richards Blvd Office Complex (State) 650 Richards Blvd. 1.25M sq ft Office 2023 Completion 7 Track 281 Apartments 321 Bercut Dr 70,000 sq ft Residential 2023 Completion 8 Banner Self Storage 400 Bercut Dr. 149,346 sq ft Commercial 2023 Completion 9 Commercial Kitchen 1501 N. C St. 11,520 sq ft Commercial 2023 Completion 10 Mirasol Village 1390 Swallowtail 100,000 sq ft Residential 2024 Completion*
SUMMARY Recently Completed
*147 Units Complete as of 12/31/22 11 Township 9 Residential Phase 2 Township 9 1M sq ft Residential Q1 2023 Start 12 Township 9 Office Township 9 120,000 sq ft Office Unknown 13 Caption by Hyatt Hotel Township 9 110,468 sq ft Hotel 2023 Start 14 Grower's District 200 N. 16th St 375,000 sq ft Mixed Use 2023 Start 15 Grower's District 211 N. 16th St. 130,000 sq ft Residential 2023 Start 16 Grower's District 215 N. 16th St. 80,000 sq ft Residential 2023 Start 17 Hobby Condos 601 Dos Rios 50,000 sq ft Residential 2023 Start 18 American River One 450 Bercut Dr. 693,913 sq ft Mixed Use Unknown 19 Hanami Line at Matsui Park 450 Jibboom St. 65,640 sq ft Public Park Q2 2023 Start 20 Alchemist Public Market 341 N. 10th St. 10,000 sq ft Commercial Unknown 21 Dos Rios Light Rail Station 515 N. 12th St. n/a Municipal Q2 2023 Start
Source: The River District

RESIDENTIAL MARKET

The River District is transforming from a primarily industrial and commercial distribution center to a vibrant, mixed-use neighborhood. The most visible aspect of this change is the growing residential market.

Multi-Family Residential Under Construction

3,302

3,302 Apartmentunitsexisting, underconstruction, or proposedwithintheRiver District

1 Cannery Place Apartments Township 9 180 units $477 avg rnt Affordable 2 Quinn Cottages 1500 A St. 60 units $498 avg rnt Affordable 3 Mirasol Village 1390 Swallowtail 147 units na Affordable TOTAL 387 units 4 Mirasol Village 1390 Swallowtail 280 units na Market Rate/Mixed 5 Track 281 Apartments 321 Bercut Dr. 281 units na Market Rate TOTAL 562 units 6 Township 9 Township 9 936 units na Market Rate 7 Grower's District N 16th St 540 units na Market Rate 8 American River One 450 Bercut Dr. 825 units na Market Rate 9 Hobby Condos 601 Dos Rios St. 52 units na Condominiums TOTAL 2,353 WWW.RIVERDISTRICT.NET 6
Proposed 1 2 3 4 5 6 7 8 Mirasol Village
215 residential
development
427 residential units, community rooms, a swimming pool, playground, community garden, fitness center, business center, and BBQ areas Source: The River District
replaces the former Twin Rivers public housing complex, which consisted of
units. The new
includes
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INDUSTRIAL & COMMERCIAL

Large lots and warehouses are still plentiful in the River District and are being repurposed for modern uses. From commercial kitchens to sports facilities, these abundant spaces are perfect for creative businesses, and are also ripe for redevelopment and new construction.

Featured Properties for Sale

Founded in 1910 as the California Almond Grower's Exchange, Blue Diamond Growers is the world's largest tree nut processing and marketing company With 968 full time employees in Sacramento County, the company ' s revenue was $1 6 billion in 2022 In December, Kai Bockmann was announced the company ' s new CEO

Featured Properties for Lease

The Woods is an event center, a rental space, and an artists' studio space Each of the studio spaces come with fully secured 24/7 usage, granting access to the shared kitchenette, common areas, photo/video studio, and concert yard, available for events to tenants and members

1 446 N. B St. Vacant Land Commercial 7,841 SF $410,000 2 605 Sunbeam Ave. Warehouse Industrial 1,795 SF $650,000 3 1450 Richards Blvd. Auto Dealership General Retail 1,534 SF $800,000 4 1506 Sproule Ave. Art Studios (2) Industrial 105-120 SF $550/mo ea 5 320 N. 10th St. Offices Suites (7) Industrial 100-470 SF $400-700/mo ea 6 721 N. B St. Warehouse Industrial 12,500 SF $7.80/IG 7 Grower's District Warehouse Industrial 70,887 SF Negotiable WWW.RIVERDISTRICT.NET
1 2 3 4 5 6
605 Sunbeam Ave. The Woods, 1506 Sproule Ave. This industrial/commercial
Street project The lot features
property is zoned C-2 for commercial use and is right off the busy North 12th Complete
29,450 SF of space with an existing 1795 SF building on the property. The location is also ideally situated near the future Dos Rios Light Rail station on the SacRT Blue Line
Sources:
The
District 7 7
CoStar &
River

TOURISM & HOSPITALITY

Situated ten miles away from Sacramento International Airport and just blocks from Old Sacramento, Capitol Mall, DOCO and Golden 1 Center, The River District's central location is the ideal hub for those visiting the region. Our tourism and hospitality sector continues to grow with the announcement of the new Caption by Hyatt hotel.

Hotel Market Conditions

The River District is currently served by SacRT bus lines 11 and 33; two SmaRT Ride stops at SMUD MoSAC and Mirasol Village; and the Green Line, Township 9 light rail station. In Q2 2023, groundbreaking is expected on the new Dos Rios Light Rail Station, which will bring Blue Line service to the River District’s east end

By The Numbers

9

There are currently 9 hotels in the River District

805

Sacramento Air Travel

There are currently 805 hotels rooms in the River District

Source: Visit Sacramento

27

2022 saw a nearly 27% increase in air traffic at SMF over 2021

Sacramento International Airport (SMF) was named the top midsize airport in the nation according to the Wall Street Journal's 2022 Airport Rankings. SMF ranked highest among all 50 airports surveyed in the reliability category and also ranked high in arrival and departure times, low flight cancellations, quick taxi and security clearance times, and a max walking distance of only 1,213 feet In a sign of continued growth, passenger totals were up for both Q4 and 2022

Source: Sacramento County Dept of Airports

"A five-story, 201-key hotel, one of the first Caption by Hyatt locations in the U.S., is planned for the south end of the Township Nine infill project in Sacramento. A new state office complex on the south side of Richards Boulevard can be seen in the background of this rendering "

From the Sacramento Business Journal

Downtown Sacramento Oct 22 Nov 22 Dec 22 YTD % Change YTD Occupancy 76% 64.7% 57.9% 67.4% +12.5% ADR $197 45 $158 $165 06 $160 50 +22 9% RevPAR $150 03 $102 29 $95 60 $108 15 +38 3% Passenger Traffic Q4 2022 2022 Total 2021 Total QoQ% Change YoY% Change Domestic 3,652,106 11,960,389 9,398,572 +9.67% +27.26% International 89,911 352,981 303,458 -2.63% +16.32% Total 3,715,017 12,313,370 9,702,030 +8.55% +26.9%
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RIVERFRONT & RAILYARDS

Hanami Line

The Sacramento Tree Foundation will break ground this spring on an extraordinary new cherry blossom park located on the Sacramento River at Robert T. Matsui Waterfront Park. The 1.5 acre Hanami Line will include 100 'pink flair' ornamental cherry trees, an iconic lighted sculpture, seating, unique paved walkways, and four separate bosques, or mini forests. The project honors the rich, and bittersweet, history of Japanese immigrants and their descendants in Sacramento

American River One

First announced at the River District's November 2022 board meeting, American River One is a proposal for 826 market-rate apartment units, 325 parking spaces, and 4,570 sq ft of retail and restaurant space. The project consists of four towers ranging from 11 to 18 floors on two parcels formerly occupied by restaurants Hungry Hunter and The Rusty Duck. Designed by LPA Design Studio, Sacramento-based IM Investments is the project developer.

The Railyards

Located immediately south of the River District, the Union Pacific Railyards once served as the western terminus of the 1860s Transcontinental Railroad. Now, the site is being transformed into a dynamic, urban mixed-use hub for residents, workers, and visitors The 244-acre infill development is years in the making and will soon see the completion of its first three projects.

Source: The River District; railyards com

ect Name What is it? When complete? The AJ 345 Apartments Spring 2023 Wong Center 150 Apartments Early 2024 County Courthouse Superior Court Spring 2024 Kaiser Permanente Hospital na MLS Stadium Sporting Venue na The Foundry Office & Retail na Central Shops District Retail & Entertainment na WWW RIVERDISTRICT NET
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CLEAN & SAFE

Year-end Reports

Private security patrols of the River District are provided through a contract with Sacramento Protective Services, with support from the City of Sacramento. Cleaning and Maintenance services are provided by our in-house Public Space Team, a rehabilitation work program employing 6 full time crew members.

Sources: The River District, Sacramento Protective Services

The River District's Clean & Safe Team is an innovative work program that offers employment, training, and life skills coaching to individuals who are currently or formerly unhoused and often recovering from addiction. The team performs litter abatement, outreach to encampments, landscaping services, and general maintenance services within the PBID boundaries.

October November December Q4 Total 2022 Total Bags of Trash Collected 834 724 926 2,484 9,759 Bags of Green Waste Collected 166 496 221 883 1,778 Bulky Items Collected 125 224 62 411 4,808 Hazardous Items Collected 83 48 323 454 678 Security Dispatch Calls 175 134 130 439 1,575 Security Officer Observations 232 344 316 892 4,149 Incident Reports & Arrests 1 2 2 5 25
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Pictured from left to right are Tim Hargis, Carl Rubalcava, Chris Evans (Public Space Manager), Shawna Bowman, and Jesse Yniguez Not pictured are Walter Mullins and Carlos Rodriguez

ADMIN & BUDGET

The River District's programs are provided directly to assessed parcels above and beyond those currently provided by the City of Sacramento and other public agencies. Service levels to individual parcels are based on the amount paid into the District. Financial oversight is provided by the Executive Director and the Board of Directors.

TOTAL: $856,890.00

TOTAL: $1,326,519.00

23.3%

*Funding not utilized in the current year has been saved for on-going projects, necessary administrative processes, and improvement projects

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PBIDAssessments $631,70700 CityofSacramento $268,15900 CountyofSacramento $150,00000 PrivateFundingWorkProgram $139,37000 SutterHealthOutreachFunding $100,000.00 IEDC $28,66400
48% 11% 20% 10% 2% 8% Maintenance&SafetyPrograms $474,42700 BusinessDevelopment&Marketing
Administration
SpecialEventProgramming
2022 River District Income
$199,379.00
$151,88600
$31,19800 2022 River District Expense 18% 3.6%
55.4%

ABOUT THE RIVER DISTRICT

The River District is a private, nonprofit 501(c)(6) business association charged with managing and promoting programs to strengthen the economic and cultural well-being of the area.

The 830-acre Property and Business Improvement District (PBID) was established in 1999 by a broad-based coalition of public and private property owners. Managed by The River District, the PBID is a special benefit assessment that supports enhanced services.

The PBID was approved for a ten-year term in 2014. The 2015-2024 Management District Plan outlines three categories of services to be provided by the PBID: public safety and maintenance; economic development; and planning, advocacy and physical improvements The services and programs provided by the PBID are above and beyond those provided by the City and County of Sacramento

Location: Approximately 830 acres bounded roughly by the American River to the north; Sacramento River to the west; Union Pacific rail berm and C/D streets to the south; and 27th Street to the east

Activities: Community Service Initiatives provide daily private security patrol, weekday trash abatement and on-call graffiti removal Economic Development activities convey a positive image for the area assisting to attract new jobs, businesses and investment resulting in an improved marketability and regional profile for the District. Transportation/Public Projects/Infrastructure Advocacy and Planning to advance the design and implementation of new roadway, transit, utility and streetscape projects.

Administration of District programs and activities is provided by The River District professional staff and Board of Directors.

River District Board of Directors

Greta Lacin, President, Lacin Family Trust

Ryan Loofbourrow, Vice President, Sutter Health

Kevin Smith, Treasurer, 29th Street Capital

David Padgham, Secretary, Separovich/Domich Real Estate

Gina Albanese, First Pointe Management Group

George Bernabe, Blue Diamond Growers

Mark Dutrow, US Glass

Ernie Gallardo, Meadows Asset Management

Steve Johns, SMUD

Harris Liu, McDonald's

Ahmed Hamdy, MatriScope Engineering Laboratories, Inc

Lisa Nava, County Supervisor Serna - D1

Josh Kohlenbrener, Bauen Capital

Ryan Robinett, ZGF Architects LLP

Advisory Members

Bud Applegate, Applegate Properties

Susan Crane, The Party Concierge

Steve Goodwin, FTEnet

River District Staff

Devin Strecker, LPM, Executive Director devin@riverdistrict net

Chris Evans, Public Space Manager cevans@riverdistrict.net

Cristina Navarro, Program Manager cristina@riverdistrict net

IEDC Support

Jennifer Harris, Program Assistant bcl@riverdistrict net

Maurice Scott, Business Community Liaison maurice@riverdistrict net

Clean & Safe Team

Shawna Bowman, Jesse Yniguez, Walter Mullins, Carlos Rodriguez, Carl Rubalcava, Tim Hargis

This report was composed by Devin Strecker, LPM Photography by Kent Lacin and Devin Strecker Copy editing by Cristina Navarro If you have inquiries related to the data and information presented in this document, please email info@riverdistrict.net.

SOURCES:

The River District; CoStar, costar com; Sacramento County Department of Airports, Sacramento Regional Transit, Visit Sacramento

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