
By Mike Hazlip–
At least 75 people gathered at a neighborhood area meeting Tuesday night to hear commercial real estate developer Ethan Conrad present his proposal to modify the city’s development plan for Sunrise Mall.
During the Citrus Heights Area Seven, Eight, Nine (CHASEN) monthly meeting, Conrad outlined what he described as “modifications” to the Sunrise Tomorrow plan, calling the proposal “Sunrise Tomorrow Evolution.”
“When Macy’s closes the two stores…[the mall will] for all intents and purposes die,” Conrad said in opening, adding that he suspects if nothing changes, that JCPenney will also close and the mall will become dead.
The proposed modifications would allow what Conrad called “logical use” tenants that he says would have originally been allowed before the city’s Specific Plan for the mall was approved. Possible tenants Conrad outlined were Home Depot, In-N-Out Burger, and Chick-fil-A.
Conrad also said the Specific Plan approved by the city in 2021 is not “economically viable.” One component of the current plan that he said needs to change is the proposed 960,000 square feet of office space. Conrad said the post-COVID commercial market has seen a reduction in demand for office space, citing a figure of about 20 cents on the dollar for the purchase of office space throughout the region.
According to Sacramento real estate appraiser and housing analyst Ryan Lundquist, the percentage of workers over 16 reported to be working remotely dropped from 17.9 percent in 2021 to 13.8 percent in 2023. By comparison, prior to the pandemic, only 5.7 percent reported working remotely in 2019.
Several residents raised concerns during the meeting regarding Conrad’s proposed retail uses, such as increased traffic, noise, and proximity to existing housing. One resident called the plans “basic.” Another who represented an existing business inside the mall asked if rent would “skyrocket” with new development. Others expressed a desire to see the property become a destination center without a line of fast-food options but with other dining and entertainment options similar to those offered in places like the Palladio in Folsom.
“We need to relax the zoning a little bit to allow logical retail uses, allowing Home Depot,” said Conrad. “That starts the ball rolling.”
He added that relaxing the current requirements to allow Home Depot could in turn attract other development such as Lucky Strike Entertainment, once known as Bowlero. Conrad floated several other national businesses, including BJ’s Brewhouse, potentially occupying the former Elephant Bar site, and IKEA. On the Sunrise Tomorrow Evolution webpage developed by the property company, Conrad lists more possible tenants, including Peet’s Coffee, Nordstrom Rack, Dick’s Sporting Goods, and Dunkin’ Donuts.
During the presentation, Conrad said revitalization of the mall would take place in two main phases. Phase 1 would include construction of Home Depot, In-N-Out, two other fast-food restaurants, Judi’s Cleaners, and Lucky Stripe’s Entertainment. According to the Sunrise Tomorrow Evolution website, Phase 2 would involve placing tenants in the northern section of the mall. Tenants would be dictated by market demand and be subject to city approval, according to the website.
Conrad said he is in the business of making dying malls profitable again, citing other Ethan Conrad Properties locations such as the Yuba Sutter Marketplace, Chico Marketplace, and the Marketplace at Merced as examples of success stories.
“We basically took dying mall properties and leased them up with great tenants,” he said, adding that his property company has done so for “numerous” properties.
Conrad currently owns 25 acres of the southern portion of the mall and confirmed he is in escrow to purchase 50 more acres, including the northern section of the mall where nearly all remaining open stores are located. Conrad also said the JCPenney parcel is part of the deal.
In an email, Conrad confirmed he would not be interested in completing the purchase of the rest of the property if the city does not approve his requested changes.
At the City Council meeting on Wednesday following the CHASEN meeting, Conrad spoke to the council and announced plans to continue to present the proposal to neighborhood associations throughout the city before returning to the Council to make a final presentation. Conrad said he anticipates being able to meet with all the associations before the end of February and plans to return at the Feb. 26 council meeting, if the city approves the agenda item.
In January, Conrad has met with Area 5, known as PONA, and CHASEN, and is scheduled to meet with Area 1 on Monday, Jan. 27, according to an Area 1 agenda posted on the city’s website.
“The goal is to have the property be walkable, have it be successful, and have the right tenants there. That’s what the community is looking for; that’s a win-win; that’s what my goal would be,” Conrad said.
At least 75 people gathered at a local neighborhood area meeting Tuesday night to hear commercial real estate developer Ethan Conrad present his proposal to modify...
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