The first phase of a new Elk Grove retail center is fully leased, and an approximately 10,000-square-foot building in its second phase is expected to be ready next year.

Earlier this year, the Business Journal reported that two buildings were completed at Capital Reserve, which is at the site of a former Capital Nursery location in Elk Grove. Pappas Investments is developing the retail center at 8403-8439 Elk Grove Blvd.

ClearChoice Dental Implant Centers filled one of those buildings, with a location that opened in May, said Kelly Rule, senior vice president of leasing with Pappas Investments.

The other building in Capital Reserve’s first phase has multiple tenants. Locally owned BAD Bakers, a previously reported tenant, is now open. With the addition of two more tenants, the building is fully leased. Bellavie Salon will fill 1,308 square feet, and Paris Banh Mi and Co. will fill 2,418 square feet, Rule said.

Elk Grove will be the first California location for Paris Banh Mi and Co., said Liem Nguyen, who will own the Elk Grove restaurant with business partner Tina Do. After debuting in Orlando, Florida, Paris Banh Mi has expanded with multiple locations. It serves Vietnamese-style baguette sandwiches. The Elk Grove location will also sell bakery items such as cheesecakes, Nguyen said.

Nguyen hopes to start work soon on the Elk Grove restaurant. If the location goes well, he said he hopes to open another site in the near future, possibly in Downtown Sacramento or the Arden area. He’s looking for a business partner for that location. Nguyen also owns a Kiki’s Chicken Place restaurant, and a location of tea shop chain T4.

Tuan Nguyen, a director with commercial real estate brokerage KW Commercial in Sacramento, represented the local owners of Paris Banh Mi in the Elk Grove lease.

With tenants finalized for the project’s first phase, Pappas Investments will turn its attention toward the second phase of Capital Reserve. An approximately 10,000-square-foot building in the project’s second phase is expected to be ready in the fall of 2022, Rule said. The building will include multiple suites, according to a leasing plan.

“I have several proposals for space but we’re being very particular,” Rule said in an email. “What we have are a few more restaurant uses in play — which is fine — however, we would prefer to have another medical/dental or a real estate/mortgage use to round out the center.”