The deal with the city is for $2,274,223. The school says the land will be used to build more student housing.
The school currently has just over 2,000 beds for students on campus. With the new apartments, that number increases to more than 3,000.
"The net positive is that there will be a lot more students living in close proximity of Sac State," CSUS Associate Vice President of Facilities Services Justin Reginato said.
The housing is part of $260,000,000 worth of infrastructure improvements to the school that the university hopes will continue to attract students and increase the on-campus life of the student body.
The need for more on-campus housing comes as apartments near the school continue to raise rent. According to real estate data firm Yardi Matrix, the La Riviera area near Sac State's campus is the seventh highest rental submarket in the city.
Four years ago, the average apartment rent in the area was just over $800 a month. Now it's more than $1,200.
The school says the city will rebuild the ballparks at the Sacramento Army Depot in South Sacramento.
Construction on the apartment-style housing on campus will begin next year and is expected to be done by 2021.