SACRAMENTO (CBS13) — News of the Sacramento Kings likely staying in town has more than just fans excited. Residents and business owners are excited about a possible downtown arena.
Shop owners like David Taylor are giddy over the excitement over the announcement the Kings may be staying put.
“I was excited. I started immediately calling everyone I know,” he said.
And the excitement is not only emotionally driven, but financial as well. If an arena is built where the Downtown Plaza Mall now stands, it means real estate values will climb, and empty storefronts will be filled in just a few years.
“For me, it’s about the ability to—when I go to investors—get involved in my project. I can honestly tell them this is a growth indicator,” Taylor said.
The big question is whether or not the Maloofs will sell the team. The Kings are valued at around $525 million, but that price could take a hit if the team is not able to move from Sacramento, since it’s based on the interest from a Seattle group led by Chris Hansen.
And even if the Maloofs consider selling, NBA owners would still have to say yes to the Sacramento ownership group led by Vivek Ranadive. That vote is expected to come in two weeks.
“We hope to be in a position at that point that our ownership group gets approved,” Mayor Kevin Johnson said Tuesday.
Once it is official, commercial real estate brokers expect the prices to jump significantly. At the start of the recession in 2007, prices fell to a low of $2.12 a square-foot and have risen to just $2.14 since then.
But with an arena, a bump of more than 10 percent—or 20 to 30 cents—is expected. And with higher prices and more demand, there will be a renewed energy along K Street—something gallery owner Barry Smith has been waiting 10 years for.
“Being here so long, it’s nice to know that I’m not going to die the way K Street is now.”