On November 10, 2026, the Sacramento Regional Transit District (SacRT) announced the sale of nine surplus properties in Midtown Sacramento to Sutter Health for $15 million. The properties were declared surplus in 2023 and are part of SacRT's strategy to modernize its facilities and transition to a zero-emission bus fleet.

The sale is subject to concurrence from the Federal Transit Administration and is expected to close within approximately three to four months. SacRT estimates that the sale will save approximately $2.7 million in operations and maintenance costs over the next ten years.

Press Release: Sacramento Regional Transit District (SacRT)

Published November 10, 2026. Reproduced in full from the Sacramento Regional Transit District (SacRT).

Midtown Surplus Property Sale and Transition

SacRT is in the process of selling nine surplus properties in Midtown Sacramento. In 2023, these properties were declared surplus by the SacRT Board of Directors in accordance with state and federal regulations.

The sale is part of SacRT’s long-term strategy to modernize its facilities, support the transition to a zero-emission bus fleet, and improve operational efficiency. The transaction represents one step in a phased transition of SacRT operations out of Midtown. SacRT will continue operating in the neighborhood for years to come as replacement facilities are developed.

Why Are These Properties Being Sold?

SacRT identified nine properties in Midtown that are no longer essential to its long-term transit operations. To ensure transparency and compliance, SacRT followed the requirements of the California Surplus Land Act (SLA) and federal regulations, including giving affordable housing developers and public agencies the first opportunity to purchase the land.

The sale also supports SacRT’s transition to a zero-emission bus fleet. The current bus parking area under the freeway has limited capacity, and Caltrans restrictions limit the ability to install the infrastructure needed to support zero-emission vehicles at that location.

SacRT secured a $77 million grant to improve and expand its maintenance facility at McClellan, with the goal of beginning operations there by 2031. The expanded facility is expected to accommodate up to 125 buses. SacRT also plans to eventually develop a second facility in the south area to accommodate an additional 150 buses. These investments are part of a longer-term plan to gradually relocate bus operations out of Midtown, with the timeline dependent on available funding.

SacRT also consolidated the majority of its administrative offices in 2023, relocating staff to new offices at 1102 Q Street in Downtown Sacramento, near its Customer Service Center on R Street and central light rail hub.

The nine properties being sold are approximately 45 to 110 years old and require significant ongoing investment to maintain, repair and operate. The age and condition of these buildings create increasing maintenance costs and ongoing expenses to keep them in a state of good repair. Reducing SacRT’s footprint in these aging facilities will help lower overhead costs and allow the agency to focus its resources on modernizing facilities that better support its long-term operational needs.

The sale is projected to save SacRT approximately $2.7 million in operations and maintenance costs over the next ten years.

What Has Been Done So Far?

  • Property parcels declared surplus in July and September 2023.
  • Notice of Availability issued in January 2024, resulting in 19 expressions of interest.
  • Six proposals were submitted for further consideration.
  • In August 2024, SacRT’s Board reviewed top proposals and directed staff to negotiate a Purchase and Sale Agreement (PSA) with The Code Solution, Inc. for affordable housing development.
  • The Board approved the PSA in November 2024, and escrow opened in March 2025.
  • In July 2025, during due diligence, The Code Solution elected to withdraw, and SacRT received confirmation from the state that it had fulfilled all SLA requirements.
  • Following completion of the surplus property sale process, SacRT received multiple offers for the properties.
  • In November 2026, SacRT negotiated a $15 million sale of all nine parcels to Sutter Health, a price slightly above the appraised value.

What’s Next?

The proposed sale to Sutter Health is subject to concurrence from the Federal Transit Administration (FTA) before closing. SacRT currently estimates the sale will close within approximately three to four months.

Following closing, SacRT expects to vacate all nine properties, with the exception of 1400 29th Street and the employee parking lot on P Street, which will remain in use during the transition. The relocation of equipment and staff from 1400 29th Street is expected to take up to three years.

SacRT’s transition out of Midtown will happen in phases, not all at once. The agency will continue operating its Bus Maintenance Facility in the neighborhood until suitable replacement accommodations are developed elsewhere. This facility, located near 29th and N streets, has served the community for more than 50 years and is not included in the current sale. SacRT estimates it will take approximately 10 years or longer to relocate this operation.

As part of the transaction, Sutter Health will provide an additional $1.8 million to cover relocation and occupancy costs associated with SacRT vacating the properties sooner rather than remaining under a longer-term leaseback arrangement.

Key Guidelines for Future Development

  • An affordability covenant will remain in place: if 10 or more residential units are developed on any of the parcels, at least 15% must be affordable to low-income households.
  • Certain land uses will be prohibited to ensure development aligns with community goals (e.g., no gas stations, storage facilities, or drive-through restaurants).

How Will the Sale Proceeds Be Used?

Proceeds from the sale will primarily support improvements to SacRT facilities, systems and equipment needed to accommodate bus operations employees and functions as they relocate. This includes near-term upgrades to the Midtown facilities SacRT will continue using during the transition, as well as investments in the expanded McClellan facility and the planned future facility in the south area. These investments will help SacRT modernize its operations while maintaining essential bus services throughout the phased transition.

Documents and Resources

SacRT Board of Directors - July 24, 2023

SacRT Board of Directors - November 25, 2023

Agenda Item 2.4:

SacRT Board of Directors - November 18, 2024

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SacRT Board of Directors - July 28, 2026

Agenda Item 4.3: Midtown Surplus Electronic Update

SacRT Board of Directors - November 9, 2026

Agenda Item 2.4: Approval to Enter into a Purchase and Sale Agreement with Sutter Valley Medical Foundation for Surplus Property Located in Sacramento, CA