A West Sacramento-based real estate investment firm is positioning itself at the forefront of Sacramento's adaptive reuse transformation with an ambitious expansion of office-to-residential conversion projects. Onyx Investment Group has added another conversion project to its growing roster, bringing its total planned office-to-residential developments to five projects encompassing approximately 660 units.
The latest addition involves a property along the bustling Florin Perkins Road corridor, representing a strategic expansion of the conversion trend beyond traditional downtown areas. According to Onyx Investment Group, the company delivers customized solutions specializing in office-to-multifamily conversions, land development, hospitality, mixed-use projects, retail, and storage units.
The Florin Perkins Road stretch between Power Inn Road and South Watt Avenue has historically housed numerous warehouse and office facilities that are increasingly being eyed for residential transformation. Properties like 4540 Florin Perkins Road, which features a warehouse at approximately 6,300 square feet with office area and heavy power zoning, exemplify the type of commercial infrastructure being targeted for conversion, as per Buzz Oates.
National Conversion Surge
Onyx Investment Group's expansion comes amid a nationwide surge in office-to-residential conversions. As reported by ABC10, the number of old office spaces scheduled for conversion into apartments nationwide has jumped dramatically from 12,100 to 55,300 units in recent years. The trend has accelerated rapidly as office-to-residential buildings now comprise nearly 42% of adaptive reuse apartment projects.
The timing couldn't be more appropriate for such conversions in Sacramento's office market. Local vacancy rates have climbed to 11.4%, marking a 60 basis point increase year-over-year and representing nearly a 10-year historic high, though still below national benchmarks. Sales activity in the first half of 2025 has trailed behind last year by 21% in volume, with just 453,000 square feet sold in the second quarter.
Local Competition and Context
Sacramento's conversion trend extends well beyond Onyx Investment Group's efforts. ABC10 Sacramento notes that recent scheduled conversions in the city include three state buildings along Capitol Mall that Governor Gavin Newsom announced will result in 400 to 800 housing units. Additionally, Sacramento County officials have received applications for smaller-scale conversions, including projects in Arden Arcade and Orangevale.
The company behind these ambitious plans was founded in 2023 by Abdul Ejaz and is based in West Sacramento. Despite being a newer player in the market, Onyx Investment Group is making significant inroads into Sacramento's adaptive reuse sector with its comprehensive approach to office-to-residential transformations.
Addressing Housing Demand
The push for more residential units addresses critical housing needs in the Sacramento region. The median cost to rent a one-bedroom apartment in Sacramento currently stands at $1,511 per month, with less than half of all living units being renter-occupied. According to Sacramento County's 2024 Affordable Housing Needs Report, 83% of extremely low-income households are spending more than half their monthly income on rent.
As office workers continue embracing remote and hybrid work arrangements, office-to-residential conversions represent a practical response to the reshaping of post-pandemic workplace dynamics. The Florin Perkins Road project represents another step in Sacramento's broader transformation, where developers are increasingly looking beyond traditional downtown corridors to meet the region's housing demands while repurposing underutilized commercial spaces.
