Adaptive reuse property Offices at Retro Lodge in Downtown Sacramento has a new owner who’s probably more familiar with its previous use.
Records show SJ Hospitality, with a Davis address, bought the converted former hotel property at 1111 H St. for $6.12 million.
Suresh Patel, shown online as the agent for SJ Hospitality, did not return a message left at a hotel in West Sacramento with a number shown online as his.
“The buyer was attracted to the property, because it has enjoyed consistently strong occupancy: a total of forty-nine executive-style office suites which are over 90% occupied by a mix of professional office businesses,” said Patrick Stelmach, a vice president at Turton Commercial Real Estate who worked on the deal, in an email.
Stelmach said SJ Hospitality plans to keep the property as it’s been operated since it was redeveloped in 2007-08. Heller Pacific turned the property, originally a Travelodge motel built in the 1950s, into small office spaces in the former rooms and retail space on the ground floor.
Offices at Retro Lodge includes a four-story, 11,616-square-foot office building at 1029 H St. and a three-story, 12,282-square-foot office and retail building at 1111 H St. Including parking, the entire property is about .64 of an acre.
Naked Coffee occupied the retail space for the last decade or so, but its operators have chosen not to renew the lease and will close permanently there this fall. Stelmach said a gourmet plant-based cafe will replace it, with more information to come later.
During the Covid-19 pandemic, he said, the office spaces remained popular for smaller tenants who wanted an office setting that wasn’t at home.
In addition to Stelmach, Scott Kingston of Turton Commercial worked on the deal.
Sutter Capital Group, which acquired the property out of bank ownership in 2014, made other property improvements over the last eight years, including new furnishings in some offices and commissioning a new mural by Jake Castro.
Burke Fathy, a principal at Sutter Capital, said in an email that his company was proud of its ownership of Retro Lodge.
“The sale will support our focusing on a number of new upcoming projects and we wish new ownership all the best with property moving forward,” he said.
According to real estate information platform Reonomy, Sutter Capital paid $820,000 for Retro Lodge in 2014.
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