Sacramento State Downtown Economic Development Project

A Transformational Economic Engine for Downtown Sacramento

Sacramento State is advancing a first-of-its-kind downtown economic development initiative within the California State University system: a transformative 2 to 5 million square foot mixed-use development located steps from the California State Capitol. This landmark project will establish a new downtown Sacramento State Capital Campus, integrating public and private uses that support education, housing, workforce development, innovation, hospitality and cultural vitality while serving the needs of downtown Sacramento and the broader region.

This development project will create a dynamic and future-focused downtown campus that strengthens Sacramento State’s statewide impact, accelerates downtown economic activity, and establishes a national model for public-private university-led economic development in the heart of the capital city.

Placeholder

Message from Sacramento State

Preisident Luke Wood and Chief of External Relations and Interim Sr. Associate Vice President for University Communications Michelle Willard

From the Community

Sacramento sits at the intersection of policymaking, innovation, and opportunity. Sacramento State’s downtown project builds on that strength by placing higher education and workforce development at the heart of our civic and economic life. Sacramento State is preparing the next generation of leaders, innovators, and public servants, while supporting local businesses and fueling inclusive economic growth. This project truly reflects Sacramento’s commitment to connecting education with real-world impact and ensuring our region remains a place where ideas turn into action.

Congresswoman Doris Matsui

About the Project

The State of California and the Department of General Services (DGS), in partnership with Sacramento State, secured $50 million in catalyst funding from Meta towards starting the development project. The donation of funds will go to DGS to demo and abate underutilized and obsolete state-owned buildings and reimagine the site as a vibrant, modern urban campus.
Last year, DGS and Sacramento State announced they are operating under an Exclusive Negotiating Agreement (ENA), providing the University with one year of exclusivity to negotiate a land transfer.
The project will serve students, faculty, staff, and the community while advancing Sacramento State’s mission as a flagship university deeply connected to California’s civic, economic, and policy leadership. This development is envisioned as a transformational economic engine for downtown Sacramento, supported by business leaders, elected officials, and community stakeholders who recognize its potential to catalyze long-term growth and revitalization.

From the Community

I am energized by President Wood’s vision in expanding the CSU and Sacramento State’s presence along Capitol Mall. By fostering stronger partnerships with industry, government and community leaders, this effort will help prepare the next generation of skilled, diverse leaders and contribute to building California’s future workforce. We are incredibly proud of Sacramento State as they advance this transformative effort that reflects the core priorities of CSU Forward, our strategic plan — strengthening student outcomes, driving economic mobility, and shaping a more innovative and inclusive future for all Californians.

Mildred Garcia, Chancellor, California State University

Potential Uses

While the University is entering the master planning phase in early 2026, early concepts include a balanced mix of academic, residential, innovation, and hospitality uses, including:

Student housing: Housing solutions that support downtown revitalization, featuring market-rate housing alongside affordable housing for Sacramento State students, faculty, and staff.
A new state-of-the-art School of Public Affairs, strategically located adjacent to the State Capitol to serve the world’s fourth-largest economy. The school will connect education, public policy, innovation, and leadership, building on Sacramento State’s nationally recognized State Capitol Fellows Program.
A mixed-use performing arts and music venue designed to serve both the campus and the broader community, enhancing downtown’s cultural and creative economy.
An Artificial Intelligence Center supporting a new bachelor’s degree in AI Business Management, positioning Sacramento State at the forefront of workforce development for industries of the future.
A boutique hotel to accommodate visiting students, families, research partners, and university guests, while contributing to the much-needed hotel capacity to strengthen downtown tourism and business travel.

From the Community

This investment will be catalytic and transformational not only for downtown Sacramento, but for the future of Sacramento State. This project positions Sacramento State as a flagship university, one that embodies economic vitality, expands access to opportunity, and integrates academic excellence with innovation, housing, and community in the heart of California’s capital. Thank you to Mark Zuckerberg, the Meta leadership team, Governor Gavin Newsom, the Department of General Services, and Michelle Willard at Sacramento State, among many others, for helping make this vision a reality. We could not be prouder to have Meta as a partner as we reimagine how a public university can serve its students, its city, and its region.

Luke Wood, President, Sacramento State