Murmurs Continue About Sak’s Building

The Sak’s Building on State Street is the source of many rumors.

In the wake of the mayor’s comments at the State of the City presentation earlier this month, more talk is centered on what will happen at the Sak’s building on the corner of State Street and Carrillo Boulevard. 

“It is rumored that the prominent two-story building will be converted to mixed-use, with retail and residential components; exciting,” writes commercial real estate broker Natalie V. Wagner in her monthly newsletter. 

The 46,813-square-foot building in the heart of downtown was purchased in December by Hotel Californian developer Michael Rosenfeld. “While plans for redevelopment are under way, national retailer Saks Off 5th will continue to operate after renewing its lease for one year,” said Wagner, who works with The Shopping Center Group. 

She writes that she is bullish on the city’s attempt to help businesses fill up the more than two dozen vacant State Street store fronts. 

“Hopefully the city’s vote to extend the Accelerated Permit Program for an additional six months will help the Saks project, among others,” Wagner writes.  

The pilot program, which began late last summer, targets properties along State Street between Cabrillo Boulevard and Sola Street, where it puts tenants on the fast-track to open for businesses quickly and ultimately cure vacancy downtown, she writes.  

“Businesses on Coast Village Road near Montecito were recently added to the program because of the damage caused by the Thomas fire and subsequent mudslides,” Wagner writes.

As several businesses position themselves to open soon, some great retailers have already opened in the State Street corridor. 

“The delicious Twenty-Four Blackbirds Chocolate has its first retail location at 428 E. Haley St. (that cool purple building a few doors down from The Mill), and Locavore Kitchen will replace The Nugget at 21 W. Victoria St., Wagner writes. “Wildwood Cafe (from the chef of Wildwood Kitchen and Julienne) is the latest and greatest food concept within the Museum of Art at 1130 State St.; and the opening of Bluewater Grill on the waterfront has easily been the most talked-about restaurant news for a long time.” 

See her State Street Update for more information:

In big office news, Wagner writes, the 19,000-square-foot Semlar Building, 1020 State St., is available for lease.

Adding to recent downtown sales, a 4,500-square-foot office building at 1727 State St. sold with a listing price of $1.9 million, Wagner writes. And 1001 State St. was listed at $18.5 million. “This recent sale is the second time the property has sold within the past few years, she writes. 

Leave a Reply