Cashing out of The Kay: Building holding Pizza Rock, K-Bar and Dive Bar up for sale [Updated]
The area around K Street in downtown Sacramento has done well in recent years, and one group of developers is hoping for a return on their investment. If the price is right, the city could see money headed its way as well.
The building that holds Pizza Rock, K-Bar, and Dive Bar, along with six other establishments, is up for sale. Local developer David S. Taylor, who owns the property along with the CIM Group of Los Angeles, says they are "testing the market" and will only sell with the right offer. They have not listed a price.
The City of Sacramento subsidized the project, called 1000 Kay, with $5.7 million in 2009, and Taylor said the terms of the deal were such that the city would be in line to get the money back if Taylor’s company and CIM received an offer that was high enough. The money from any purchase would first go to the investors, and if they made a specified amount of profit, the remaining amount would go to the city. (Taylor wasn’t sure what the exact figures were, but we’re working to get those from city staff soon.)
They decided to sell because they believed they had "nine high-quality tenants" in the building. The sale shouldn’t affect the businesses, Taylor said.
While Taylor said that one of their initial fears when developing the project was that "no one would show up," the area has seen a resurgence in recent years, with a cluster of restaurants and cafes opening both on K Street and in the surrounding blocks, including K-Bar, Tequila Museo Mayahuel, Blackbird Kitchen & Bar, Estelle’s Patisserie, Plaza Café Lounge and Broadacre Coffee.
The downtown Business Partnership has sought to take advantage of the momentum by rebranding the area between 7th and 13th streets as "The Kay."
In other words, it was a "Field of Dreams" type situation: he built it, and the people did in fact show up.
"It shows that if you provide good entertainment options, people will come," Taylor said. "They will come in droves and they will come consistently."
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