The new Entertainment Sports Complex in downtown Sacramento is generating considerable interest for investors looking to capitalize on the expected business influx. But, investors need to anticipate the challenges facing them.

Tom Ford, co-owner of MarketOne Builders, talks about the choices investors can expect to face when developing near the Downtown Arena.

What kind of improvements can an investor expect to spend money on while looking to move to downtown Sacramento to be close to the new Entertainment Sports Complex?

A possibility in any development area, especially K Street, even R Street, is that there is a limited amount of electrical service. Not in terms of supply, but of infrastructure.

So, there is a development cost associated with this kind of project. All facilities and infrastructure will have to be updated and pass inspection, so there’s a lot of offsite development that many people don’t necessarily consider. These can be big numbers. 

Downtown Arena - City of Sac.jpg   Photo by the City of Sacramento


Are these costs often unexpected for businesses purchasing these kinds of buildings? How does a general contactor help to mitigate these costs?

New investors may overlook these costs and a real estate agent may not know to investigate those development needs beforehand. That’s where the responsibility of the general contractor comes in.

Part of a good general contractor’s due diligence is looking at the behind-the-scenes, the technical details that many businesses may not know to consider when they’re looking toward the future of their project.

We aim to give a client an accurate picture of cost up-front, rather than allow us both to be surprised by infrastructure expenses down the line.    

 

Are there any reasons we might not see investment happen?

 It’s not so much the design dollars, it's what rents [investors] can get out of the project. If they can't get the rent that they need to make that investment, then they're not going to do it.

Now with the Entertainment Sports Complex generating interest Downtown, we’re starting to see businesses feel confident enough to put the money forward to start these development projects.


What advice would you give to business looking to invest in Sacramento? 

Hire someone who knows the area and the infrastructure. Hire someone who knows how make your investment go the farthest here.

With the Arena still under construction and some unanswered questions on what surrounding business development will look like, it is important for investors to partner with a local general contractor who is familiar with regional building regulations and will explore all the options.

Taking the time to explore regional builders and the value their specialized experience brings to the table is always a high-return investment.