The Gateway – Sacramento, CA
Stockton Gateway is a $79M, 230 unit, multifamily residential development situated within a Qualified Opportunity Zone (QOZ) in an underserved urban infill corridor within the City of Sacramento, CA. CTI Housing sponsored the project from start to finish, first identifying the opportunity, subsequently acquiring and assembling all four contiguous parcels, before securing the capital stack, maximizing density, and successfully entitling the project.
Stockton Gateway is the first of CTI Housing’s signature residential product, known as the “30/30/40” model: 30% Market Rate, 30% Workforce, 40% Affordable. In order to secure critical gap financing and increase the project’s affordability, CTI Housing developed, and successfully pitched-, the idea for a municipal loan product.
In October of 2022, the Sacramento City Council unanimously approved a $15M loan to CTI Housing, repurposed from the City’s “Rainy Day Fund” along with a significant real estate property tax abatement. The loan will simultaneously provide the City an increased rate of return for its investment, while providing CTI Housing with favorable financing terms, which in turn enabled CTI Housing to increase the project’s levels of affordability.
The strategic thesis behind the project was informed by an influx of investment and economic activity underway in close proximity to the site, including the UC Davis Medical Center redevelopment, and the construction of Aggie Square, a $1 billion+ Life Sciences currently under construction adjacent to the Gateway site. Aggie Square alone is estimated to generate $5 billion in annual economic activity, as well as 25,000 ongoing jobs to the six-county region.
Stockton Gateway is expected to break ground in the Q1 of 2023, with construction targeted for completion in the beginning of 2025.