"Our overriding conclusion is that the Downtown housing market is sufficiently deep to support residential development on both the Superblock and the CalPERS properties fronting along R Street between Fifth and Seventh streets," according to the report. The giant pension fund's project site is part of a major revitalization area that shows significant signs of well-established neighborhoods and multifamily housing units.

The report lists a number of reasons that Downtown Sacramento has become a popular destination. "National trends demonstrate greater interest in Downtown living," the report notes. "Proximity to employment centers, parks and entertainment retail, increased freeway congestion…" are all reasons listed in the document.

In addition, the report says that the Sacramento multifamily market is maintaining very strong occupancy levels. The study examined the occupancy rates in Sacramento's Downtown area, surveying Governor's Terrace, Capitol Towers, Governor's Square and Bridgeway Towers. Occupancy rates are almost 100%, indicating an under-supplied market.