Local gaming tribes expand footprint in Downtown Sacramento real estate

Several Native American tribes with casino operations in the Sacramento region are investing heavily in downtown real estate, marking a shift beyond gaming into urban development.

"There have been a lot of encouraging discussions around community development, and it's something they wanted to be part of," said Michael Ault, executive director of the Downtown Sacramento Partnership, as per Sacramento Business Journal.

United Auburn Indian Community (UAIC), which operates Thunder Valley Casino Resort, acquired 300 Capitol Mall (Emerald Tower) for $127 million in 2019. Initially boasting a 92% occupancy rate, it has since dropped to 69% as demand for office space wanes in the post-pandemic hybrid work era.

The tribe bought 2700 J St. for $4 million in 2023, designating it for a cultural center. It further expanded its downtown presence with a $17 million purchase of 301 Capitol Mall, a full city block. The tribe is set to announce development plans for the site in early 2025.

Wilton Rancheria, the most recent entrant to tribal gaming in the region, is poised to make a high-profile move by acquiring 31 acres in the Railyards project for a 12,000-seat soccer stadium and mixed-use development. The deal, which will make the tribe the majority owner of Sacramento Republic FC, is expected to close soon.

"It made a lot of sense for us," said Chris Franklin, chief operating officer of Wilton Rancheria, emphasizing the synergy between casino tourism and entertainment investments.

Tribal investments extend beyond Sacramento’s urban core:

• UAIC acquired 120 acres near Thunder Valley Casino in 2023.

• Shingle Springs Band expanded near Highway 50, adding a gas station and convenience store.

• Wilton Rancheria is in the process of buying 100 acres near Sky River Casino.

For many tribes, land acquisitions serve dual purposes: reclaiming ancestral territory and diversifying economic portfolios.

"As tribes grow their economy, the natural thing to do is diversify," said Kristi Jackson of TFA Capital Partners, an advisory firm specializing in tribal finance.

Investments may yield direct returns through development or indirect benefits such as leasing agreements or tax revenues, she noted.

Ault said the recent tribal investments align with Sacramento’s transformation from a government-centric employment hub to a district featuring housing, retail, hospitality, and entertainment. "Downtowns are going to be different, and this reflects that," he said.

Wilton Rancheria’s Franklin suggested more investments could follow as the tribe continues expanding Sky River Casino. "We'll be talking again," he said.