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March 28, 2017

Sacramento Midtown business set to close because of higher rent and retirement

ABC 10 (KXTV)

Ananda Rochita

A Sacramento midtown business is set to close because of higher rent and new beginnings.

Gifted Gardener has been open for 28 years of business.

David Kwong, the owner, says it's the right time to retire. A big reason is because his rent saying it's doubled because of the Golden 1 Center.

"I was blessed with good leases in the past," said Kwong. "New landlord bought the property at a higher price and he said the market value is much higher and he also brought up the Golden 1 arena."

According to the Downtown Sacramento Partnership, since 2013 downtown property values have increased by roughly $180 million dollars. It's something Tom Bacon with Kidder Mathews has seen too.

"The rents have gone up so high certain businesses just don't have strong enough margins to justify the rents they got to pay," said Bacon. "I'd say that the Golden 1 Center was like lighter fluid on a fire that was already burning but it just pumped it up quite a bit."

It's something Kwong pretty much expected to see with so much going around his store in the last three decades.

However, he says he's looking forward to officially retiring.

His store will close this summer and he will start sales for his merchandise on April 1.

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