A behind-the-scenes look at the sale of two quirky Midtown properties — complete with a roof hatch break-in, a surprise lawsuit, and a vision for transforming vacant buildings into a vibrant mixed-use hub.
After nearly five years of providing valuations, guidance, and real estate therapy to the Buena Vista Rancheria of Me-Wuk Indians, I’m happy to report that The Compound @ N20, located at 1412 and 1418 20th Street in Midtown Sacramento, has officially closed.
1418 20th Street
1412 20th Street
This one had it all: tribal ownership, roof-hatch breaches, tent villages, drug busts, an LLC scidaddle, and a tenacious and creative buyer. In other words, just another smooth and uneventful deal in the world of commercial real estate, NOT.
A Relationship Built on Trust (and a Lot of Patience) My relationship with the Buena Vista Tribe began years ago when I was first asked to provide a valuation. That led to another, and another, and eventually I was asked to bring their Midtown assets to market. However, before we could go public, we had to ensure the properties were sale-ready from a tribal governance perspective.
Here’s a tip: when working with sovereign tribal nations, ensure you have the correct paperwork before attempting to open an escrow. If the property is held directly by the Tribe and not through an LLC, the title company is going to want to see formal resolutions authorizing the sale. Without it? No title insurance. No deal. And no fun for anyone.
Thankfully (so I thought), one of the buildings (1412) was already held in an LLC. 1418 20th Street required a bit more work behind the scenes to meet the requirements, but once we had all our ducks in a row, it was time to hit the market.
Marketing Strategy & Finding the Right Buyer
We went out strong, with professional photography, full exposure across platforms, email blasts, and broker calls. However, the truth is that the eventual buyer didn’t come through a platform or an algorithm. They came from something a bit more analog: my phone.
I began reaching out to past clients and active players in the Midtown market – individuals I knew were seeking well-located, value-add opportunities. And wouldn’t you know it, one of those conversations led to a buyer who had a knack for reimagining real estate. The kind of person who doesn’t just see buildings, they see possibilities.
That’s exactly what these properties needed. Both were vacant. Both had quirks, and both had untapped potential.
Hurdles, Headaches, and Homeless Encampments: Due Diligence Gets Interesting
No transaction is without its bumps, but this one had enough hurdles to require an Olympian effort.
Hurdle #1: The Roof Hatch Incident
The two-story office building at 1418 was entered via an unlocked roof hatch. (Yes, that’s a thing.) After the early visit from Santa was cleared up, a homeless encampment formed that consisted of seven tents, a couple of bonfires, and a bike repair shop and an urban pharmacy. It took ten calls to 311, the Fire Department, and law enforcement before the area was cleared. Two arrests were made.
Hurdle #2: The Financing Fumble
Mid-escrow, the buyer’s financing fell apart. They regrouped, restructured, and came back, but not before asking for a price reduction. That was a firm “no” from the Tribe, which added three more weeks to our timeline.
Hurdle #3: The Lawsuit Surprise
Just when we thought we were in the clear, a previously undisclosed lawsuit involving the prior occupant of 1412 20th surfaced. Title backed away as if they saw a rattlesnake on the porch. It took another month of research, explanation, and paper-shuffling before we got the green light.
Hurdle #4: The LLC That Vanished
Then, just days before closing, the LLC that owned 1412 20th Street was inadvertently terminated. That’s right — one click and poof, the entity ceased to exist. Another three weeks went by while we worked with the Secretary of State to bring it back to life.
And yet, through it all, we continued to move forward, and the properties sold. The Victorian Sold for $1,130,000, and the office building sold for $1,170,000. This works out to about $200 PSF.
What’s Next: A Midtown Transformation in the Making
While the buyer’s plans are still under wraps, I’ll say this: if they’re able to execute even half of what they’ve envisioned, these two properties will become a seamless, vibrant mixed-use enclave right in the heart of Midtown. It’s the kind of transformation that makes this business rewarding — taking old, underutilized properties and putting them back to work in a way that benefits the community.