Sacramento has quietly picked a developer to turn the historic Hale building on K Street, just a short walk from Downtown Commons, into housing. Mayor Kevin McCarty revealed the move at a recent town hall, and city officials say negotiations are in progress while the developer’s identity and deal terms stay confidential for now.
According to The Sacramento Bee, McCarty told attendees the city had selected a developer to bring housing to the Hale building. A city spokeswoman, Jennifer Singer, declined to provide more details while talks continue. The Bee noted that McCarty’s comments came after the city launched a request-for-proposals process last year and after a legal settlement that shifted ownership of the property to the city.
What the city asked for
The city issued a formal request for proposals in August 2025 for 825–831 K Street, inviting potential buyers or lessees to submit plans that would prioritize active ground-floor uses with housing on the upper levels. As outlined by the City of Sacramento offering memorandum, the three-story building is roughly 76,320 square feet, dates back to 1881, and currently has its second floor leased to Skyslope. The RFP set an October 3, 2025 deadline for proposals.
How the city acquired it
The City Council voted in July 2023 to purchase the K Street property for $18.5 million through a purchase-and-sale agreement tied to a settlement with developer Paul Petrovich. That approval, recorded in a council resolution, describes the acquisition as the resolution of several years of litigation and notes that the price matched the appraised value. See the City of Sacramento council resolution for details.
Cost questions linger
Coverage from The Sacramento Bee has raised continuing questions about the overall settlement and whether the city paid too much for the Hale building. The Bee cited experts who estimated that the city’s price exceeded market value by several million dollars. That same reporting pointed to short-term operating costs and the possibility that the city could lose rental income if major tenants exit before the building is converted.
What comes next
City staff say they plan to wrap up negotiations with the chosen developer and then return to the City Council for any approvals needed to advance the project. The selection schedule and evaluation criteria laid out in the City of Sacramento offering memorandum emphasized both economic and community benefits. Any redevelopment will also have to satisfy landmark-preservation requirements and design review before construction can start, according to the same document.
Why it matters locally
For people who live and work downtown, the Hale building project could bring more apartments, livelier storefronts, and extra foot traffic along the K Street corridor, all priorities the city spelled out in its RFP. With officials keeping quiet while negotiations unfold, residents can expect to see formal proposals and City Council votes before any construction work begins.
