Login

Petrovich Development Turns Former Contaminated Railroad Site Into Award-Winning Village

Reclamation Project Named Commercial Development of the Year in Sacramento
The transformation of the former Transcontinental Railroad site into Crocker Village is complete. (CoStar)
The transformation of the former Transcontinental Railroad site into Crocker Village is complete. (CoStar)
By Drew Voros
March 31, 2023 | 10:00 AM

A major mixed use-project in Crocker Park is a once-in-a-six-decade development that involved transforming the second-most contaminated Brownfield site in the U.S. into a national award-winning mixed-use community.

The project, located at 3660 Crocker Dr., is wedged between Land Park and Curtis Park, considered to be two of the most important legacy neighborhoods in Sacramento. By transforming the contaminated Brownfield site into a national award-winning mixed-use community, it was awarded a CoStar Impact Award for commercial development of the year in Sacramento by a panel of real estate professionals within the market.

The 72-acre redevelopment project is centered on a commercial shopping center that served as the key economic engine of the planned community for funding the massive cleanup. This high-end retail center is anchored by Safeway’s flagship grocery store for all of Northern California. The total square footage is 189,000 square feet making it the fifth-largest shopping center in the city of Sacramento.

The balance of the project consists of five different housing types ranging from 50, three-story East Coast brownstones to 300 single-story houses and finally 91 affordable housing units. One of the single-family homes was awarded “Home of the Year” by the National Home Builders Association.

This parcel of land served as the former western terminus for the Transcontinental Railroad and was where much of the equipment maintenance and manufacturing occurred for the Southern Pacific Railroad. For almost 100 years, the land was poisoned by massive amounts of solvents and other toxic chemicals. More than $550 million was spent including demolition, clean up, infrastructure, the shopping center, affordable housing, the park and, of course, the homes.

Pictured from left to right, Petrovich Development Company's Aileen Nelson, Lisa Montagnino, Brett Daly, Caleb Huiskens, Lisa Growth, Chief Executive Officer and Founder Paul Petrovich, Hudson (dog), Chief Operating Officer Cheryl Petrovich, Bob Horton, John Cox, Jamie Lee Herman. (CoStar)

About the project: The project consists of 72 acres with an elegantly designed commercial shopping district, 500 homes and a six-acre park. The project as a whole cost more than $550 million including demolition, clean up, infrastructure, the shopping center, affordable housing, the park and of course the homes.

What the judges said: "The transformation is very impactful adding grocery-anchored shopping center and homes, creating a whole community," said Kelly Rule, senior vice president of Leasing, Inverness Management.

Konrad Knutsen, an associate director at CBRE, added that "This project revitalized a key area of Sacramento between Sacramento City and Curtis Park."

Mark Rutheiser, executive director of real estate services at the University of California/Davis, noted that "without the economics of such a project, the clean-up of the extremely contaminated site may not have been possible. This has had a major impact on the region."

They Made It Happen: Paul Petrovich, president, and the team at Petrovich Development Company.

IN THIS ARTICLE