A three-story mixed-use building is moving closer to construction at the heart of Historic Folsom, bringing 30 rental lofts and expanded retail space to the area surrounding the light-rail station. The $18 million Granite House project represents a significant expansion of transit-oriented development in the historic downtown district.
Granite House, planned for the northwest corner of Sutter and Reading streets in Historic Folsom, is advancing toward construction with revised plans that substantially increase its retail footprint. The project will feature 16,000 square feet of ground-floor retail space—up from 6,670 square feet in the original proposal—with 30 residential lofts occupying the upper two floors. Developer Jerry Bernau indicated the residential units would likely be rentals rather than condominiums.
The development is the second phase of Historic Folsom Station, a four-part redevelopment led by Bernau Development Corp. managing member Jerry Bernau through Folsom Railroad Block Developers LLC. The first phase, the Roundhouse retail building, was completed in 2020. Granite House will sit next to the Roundhouse and directly across from the Historic Folsom light-rail station, positioning it at the center of the area's transit hub.
The Historic District Commission unanimously approved a design-review modification for Granite House at 900–918 Sutter Street in October 2024, clearing a key regulatory hurdle for the project. The approval reflects the city's commitment to expanding development around the light-rail station while maintaining the character of the historic district.
The broader Historic Folsom Station project encompasses 4.9 acres and includes a 315-space public parking garage, public plaza, and amphitheater. This infrastructure supports the area's transformation into a walkable, transit-oriented district that blends historic preservation with contemporary mixed-use development.
For Folsom homeowners, the addition of 16,000 square feet of retail space means more shopping and dining options within walking distance of the historic downtown core. The concentration of new businesses around the light-rail station creates a more vibrant commercial district that can enhance property values in surrounding neighborhoods.
The 30 rental lofts will add to the area's housing diversity, bringing residents who can support local businesses and contribute to street-level activity in the historic district. Transit-oriented housing like this typically attracts renters who value walkability and light-rail access, reducing vehicle trips and supporting a more pedestrian-friendly environment.
The project's location directly across from the light-rail station positions it as a model for transit-oriented development in the Sacramento region. Residents of Granite House will have immediate access to the Gold Line, which connects Historic Folsom to downtown Sacramento and other employment centers along the corridor.
With two of four phases now complete or advancing, the Historic Folsom Station redevelopment is reshaping the area around the light-rail station into a mixed-use district that balances historic character with modern amenities. The public plaza and amphitheater components create gathering spaces that serve both residents and visitors to the historic downtown.
As Granite House moves toward construction, Folsom homeowners can anticipate continued evolution of the historic downtown area. The remaining two phases of the Historic Folsom Station project will further define the district's character and expand the range of retail, dining, and housing options available near the light-rail station, potentially influencing property values and neighborhood dynamics in the surrounding residential areas.