Urban Capital proposes four-story, 368-unit apartment project in Davis near I-80

 By Ben van der Meer – Senior Reporter, Sacramento Business Journal

Sep 24, 2024

https://www.bizjournals.com/sacramento/news/2024/09/24/urban-capital-four-story-apartment-davis.html

A Sacramento development company is taking its model for workforce housing projects in Midtown Sacramento to propose an even larger one in Davis.

Urban Capital LLC, partnering with Gateway Development Partners, has proposed a four-story, 368-unit project called Leonardo near where Richards Boulevard crosses Interstate 80.

"We're right next to downtown, right next to the freeway, right next to UC Davis," said John Vignocchi, founder and managing partner at Urban Capital. "And rents are also affordable to median income folks in Davis."

With an address of 1616 Da Vinci Court, Leonardo would be on 2 acres of undeveloped land within what's mostly an office park. Project units would be 323 studios or studio lofts, four one-bedroom units and 41 two-bedroom units. Square footages would range from 394 to 1,370.

Plans show units grouped around an open-air amenity area that includes a pool, game room, community room and communal kitchen. Upper floors include a second gym and other, unspecified amenity space.

Vignocchi said 20% of the units would have rent restrictions designating them as workforce housing. That allows the project, with a total square footage of 191,986 square feet, to qualify for a density bonus and concessions on height.

He said the city recently changed zoning to allow housing on the property, and Urban Capital has applied under a process allowing ministerial review. The hope is the city will approve entitlements in about six months, allowing construction to start as soon as mid-2025, he said.

Project costs are likely to be about $70 million. If work starts on the expected timeline, the apartments should be ready for students at University of California Davis in fall 2027, he said, though the project isn't strictly planned as student housing.

"It's a great housing site near a lot of other apartments," he said, adding that because of the depressed market for office properties the site isn't likely to be otherwise developed anytime soon.

The project architect is 19Six Architects in Sacramento.

Urban Capital is currently wrapping up on work on Studio 30, a 29-unit project at 500 16th St. in Midtown Sacramento, and planning to start construction soon on two more nearby, 41-unit Grace at 620-628 15th St. and 130-unit Esperanza at 424 12th St. All three have a workforce housing designation.

Vignocchi said the recent drop in the federal funds rate hasn't yet translated into lower interest rates for financing projects like Urban Capital's. But there is more interest from wealthier individuals lately in becoming equity partners on projects, he said.