University Enterprises, Inc. – the not-for-profit business auxiliary of Sacramento State – has purchased the CalSTRS building at 7667 Folsom Blvd. The building adds 188,000 square feet of new campus space that will eventually house both University academic and auxiliary programs.
The $35.3 million transaction gives the University much-needed space to expand, with both a large new facility and eight acres of land on a “mini-campus” just a short distance from the main campus. The building itself is nearly twice as large as the University’s relatively new Academic Information Resource Center.
“This was just an outstanding, once-in-a-lifetime opportunity. We felt we had to pursue it if the price was right,” says Matt Altier, executive director of University Enterprises. He estimates that the cost of buying eight acres near campus and building a new, similarly sized building would have been nearly twice as much.
Decisions on specific uses for the building will be made over the next two years. In the meantime, CalSTRS, the California State Teachers’ Retirement System, will lease most of the building back from University Enterprises. It sold the property because it plans to eventually move to new headquarters in West Sacramento.
This is the second such purchase by University Enterprises in recent years. It also acquired 25 acres on Ramona Avenue just south of campus, where it is developing faculty and staff housing. In addition, it has leased the Upper Eastside Lofts at 65th Street and Folsom Blvd., which will open as student housing this fall.
The activity is all part of a larger Sacramento State effort to become a more residential campus, in part by helping develop a University District in the 65th Street area. Other components include a planned tram connecting the campus to the 65th Street light rail station. On campus, a 600-bed residence hall is under construction and work on a 150,000 square-foot Recreation and Wellness Center begins early next year.
The CalSTRS building purchase was handled with the assistance of broker Bruce Hohenhaus of Collier’s International. It was recorded late last week.
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