Sacramento State Plans Major Campus Expansion Downtown

SACRAMENTO, Calif. — Sacramento State University is moving forward with a plan to transform several former state office buildings into a new campus and housing facility downtown. This initiative aims to create a mixed-use center on Capitol Mall that would serve students and the community.

The proposed development includes a new School of American Democracy and student housing within 2 to 5 million square feet of space. Michelle Willard, chief of External Relations for Sacramento State, said, “This development project will offer a first-of-its-kind live, work, play model in the heart of our urban core.”

The plan involves converting three state buildings: the Employment Development Department at 800 Capitol Mall, the EDD Solar Building at 751 N St., and the State Personnel Board Building at 801 Capitol Mall. EDD employees will relocate by early 2026 as part of this process, according to the Department of General Services.

The project builds on Governor Gavin Newsom‘s 2019 initiative to repurpose unused state properties for affordable housing. In 2023, a deal with McCormack Baron Salazar Inc. to develop affordable housing fell through when additional funding was denied. Sacramento State then requested the properties to create the new campus.

Willard noted that there is a significant demand for student housing, with an 800-student waiting list. The school plans to provide at least 1,000 beds, mainly for upperclassmen. “We are short a couple thousand beds just for students alone,” Willard told ABC10.

The close proximity to the Capitol building allows the university to enhance its political programs. In addition to the campus, the proposal includes a boutique hotel and a mixed-use performance venue for the School of Music.

The Sacramento Downtown Partnership endorses the project. Executive Director Michael Ault stated, “Transforming this underutilized section of Capitol Mall into a mixed-use campus would be nothing short of transformational for this city and the next generation of California leaders.”