Unoccupied since 2016 construction
Roseville, CA- The Roseville City Council approved today a $10.5 million purchase of 116 S. Grant Street, a four story building in the City’s downtown. The building has remained unoccupied since construction was completed in 2016.
Over the years, the City and interested private parties have engaged in discussions regarding the sale or leasing of the building with building owners, Joseph Mohamed Sr. and Shirley Mohamed. In fact, prior to constructing the office building at 316 Vernon Street in 2016, the City made an offer to acquire 116 S. Grant Street for a purchase price of $21 million. At the time, the amount was less than the cost of constructing a new office building. The offer was declined.
Roseville Electric Utility to fund purchase
Roseville Electric Utility will fund the purchase with cash reserves that are intended for capital acquisition or one-time expenses and not ongoing operational expenses. Electric-rate increases will not result from this acquisition.
It is important to note that no General Fund monies will be used to complete the purchase.
Roseville Electric plans to occupy the first floor and will to hire a broker to lease the remaining three floors, generating approximately $800,000 annually in revenue. Within 13 years, the purchase price is expected to be repaid through leasing fees. Included in the purchase is 160 dedicated parking spaces in the Oak Street parking garage.
“We have had a need for many years to acquire additional space, secure our corporate yards and respond to regulatory mandates,” said Roseville Electric Utility Director Michelle Bertolino. “We know reliable and low-cost energy is more important than ever to our residents and contributes to our business customers’ profitability. Bertolino said.
This purchase also provides a key element for the vision for Roseville’s downtown.
“We’ve had our sights set on this building for quite some time,” said Mayor John B. Allard II. “This purchase will serve customers more efficiently especially as we prepare to add about 60,000 customers with new homes and businesses in west Roseville. It also will jump start activities and opportunities in the central core of our downtown.”
Highly desirable location
The building’s highly desirable location is adjacent to the Vernon Street Town Square, Civic Center, Sierra College satellite campus, three new bridges along Dry Creek, a roundabout, restaurants, shops, art galleries, a regional park, and two parking garages-both of which offer free parking.
The City’s economic-development staff regularly receives inquiries about office space downtown. “Now we have a great option for businesses looking for a vibrant, central location,” said Economic Development Director Laura Matteoli.
“I’ve been involved in the visioning process for our downtown for the past 20 years, and we’ve seen a lot of key elements transform this area in the past decade,” said Mayor Allard. “We’re grateful to the Mohamed family for the opportunity to accelerate our momentum.”
- Four stories
- 56,248 square feet
- Two suites per floor, similar in size ranging from 5,216 – 5,769 leasable square feet (resulting in approximately 11,000 sq. ft. of leasable area on each floor)
- Fourth-floor balcony overlooks the Roseville Civic Center and Vernon Street Town Square
- Purchase includes 160 dedicated parking spaces in the Oak Street parking garage that will be reserved for this office building once the Oak Street parking garage reaches 80% occupancy