Sacramento Development News

[sugit]

There is nothing wrong what so ever with it. I really hope it happens.

The problem is though that if order for the most towers to get built they need to pre-sell 50% of the units in order to get financing from a bank, esp for something so new to a market as high-rise condo's are to DT Sac

So for example, in order for The Towers to get built, around 400 people need to purchase a condo before the first shove of dirt is scoped.

Right now, between all the proposals, there are around 3500 units, that's a tall order to get that many people to buy at one time, esp considering most of them are luxury condo's and will cost around $400-$500 a sf (ie 400-500K for a 1000 sqaure foot condo)

More importantly, that's a lot of money for something that will take 2 years to get built and they can only look at in a marketing brochure.

For an office tower, banks usually require around 30% preleased. 621 Capitol Mall for example, has zero leases signed. They can not start building until they get those leases. DT Sacramento is not a very deep office market to begin with, and right now is even worse with the crappy job market. None of the traditional DT tennants are looking for more office space to expland. So the thought of 4 office towers going up at once, not very likey, I do not think there will be enough demand.

I do think that the condo towers have a MUCh better chance of getting built though, becuase there are people that have been waiting for this kind of living for a long time.

In the end, I'm just not sure Sacramento can handle all these at one time... I hope I'm wrong though

[Dr.VitO]

i agree that not all of the towers will get built. The one thing that we should be excited about is that it's starting to happen. We're finally getting some quality high-rise proposals. It's exciting to be in sacramento to see the city growing and the skyline changing. Btw, when is the next mayor election?Heather fargo has to go, i cant stand that lady!

[Dr.VitO]

hey found this article on this real estate site... according to this BCN wants to break ground on Epic tower this fall. Im confused cuz i thought they were starting Aura first..


Sacramento High-Rise Projects May Influence Area's Economy
May 16, 2005
By Natalie Dolce, Staff Writer


Several proposals for high-rise apartment buildings are under way in downtown Sacramento, and many more developers are scouting the area for potential sites. But can the market sustain a massive influx of new development?

BCN Development plans to break ground in the fall on a 50-story Downtown condo tower designed by renowned architect Daniel Libeskind. CIM Group currently is building a seven-story mixed-use project with retail shops on the ground floor and 225 residential lofts above. And developer John Saca has proposed two 52-story condo towers with retail, office space and a four-star hotel. Those projects would make downtown Sacramento the new hot spot, with a stronger residential focus.

"People commute from the suburbs," said Kelly Rivett, senior adviser for the multi-housing investment group at Grubb & Ellis Co., "and after 5 p.m., Downtown is dead. So if people stick around, it will better the economy."

Marc Ross, an associate at CB Richard Ellis Inc., added that young professionals increasingly are turning away from suburban ranch homes and toward Downtown's social aspects, such as its restaurants and the ARCO Arena for the NBA's Sacramento Kings. But he noted there is a current lack of local housing to support the population shift.

Meanwhile, Mark Leary, a senior sales associate at Arroyo & Coates, agreed that high-rise condos would be a boon for Sacramento long term but expressed concern about the possibility of immediate overbuilding. "I don't think the market can sustain the (high-rise buildings) that are planned," he said, "so I don't see it as a good thing if more were planned this year."

John Dailey, a senior vice president with CB Richard Ellis Inc., has similar views, though he believes only a fraction of the projects currently on the drawing table will ultimately be financed and built. "There is a demand for one of the two tower projects (right now)," Dailey said. "The nightlife, the 23 new restaurants and the population growth, which is projected to continue, mean the demand will continue."

"Sacramento needs a stronger residential focus," added Walter Helm, a senior adviser at Sperry Van Ness. "Businesses are moving to Sacramento. The people will follow."


http://cpnonline.com/cpn/regions/art..._id=1000919868

[sugit]

Nice article, skyscraperHolic. That is confusing though, I also though Aura would be first. Maybe just back fact checking on their part.

It is definatly a nice time for Sacramento. In years past we would be lucky to get 2 or 3 proposals, and be ever luckier if one of them was actually built.

Now we actually have a really good pipeline of projects, and have a greater chance of seeing a few of them actually get built. The next couple of years are going to be key to if Sacramento can make that turn for the better in DT

[x_raided]

sugit, don't you believe, that people that live in Sacramento, will be damn excited about all the new downtown 'Living" apartments, and maybe Sacramento has WAY more people that would buy apartments in downtown than we ever though?

I mean, when city of Sacramento was first introduced to the Twin Towers, it got sold out almost instantly, thats a good sign i believe

Not so sure about the office skyscrapers, but i think many apartment skyscrapers will be sold out

[enigma99a]

Originally Posted by x_raided

I mean, when city of Sacramento was first introduced to the Twin Towers, it got sold out almost instantly, thats a good sign i believe

Where was this information obtained from?

[sugit]

Originally Posted by enigma99a

Where was this information obtained from?

No kidding..There hasn't even been an opportunity to buy one yet. The only thing that has happened is you can get prequalified. I do not even think they are legally allowed to sell them yet

As I mentioned above, I think the condo towers have a much better chance of getting financed and built than office towers, and I do think some will get built...but I just do not think that the luxery condo market, which all the proposals are for, isn't deep enough for all them to built all at once.

[sugit]

Great looking building....

Greyhound might face journey to new terminal

Developer Danny Benvenuti holds the deed to the building that now houses the Greyhound bus station and the key to doing what civic leaders have wanted for years - moving it.
Now Benvenuti is willing to help the company relocate from the K Street Mall area to another of his properties.

Why? Well, Benvenuti disclosed Friday that he envisions a 31-story glass tower that would replace the 70-year-old building on the corner of Seventh and L streets.

Before his concept can be erected, the current Greyhound station must go, acknowledged Benvenuti, the nephew of real estate magnate and Sacramento Kings minority owner Joe Benvenuti.

Greyhound spokeswoman Kim Plaskett said Friday that the city has given the company a list of 14 potential sites. If it finds that none is suitable, Greyhound may launch its own search, she added.
"We are certainly willing to cooperate with the city on finding a new location," Plaskett said, speaking from the company's Dallas headquarters, "but it must be a suitable location for our business and customers."

Moving the bus station has been a goal of city managers who see it as a key to reviving Sacramento's struggling K Street Mall. Police receive more calls to the area surrounding the terminal than to any other in the city.

Sacramento City Councilman Steve Cohn declined to comment on Benvenuti's proposal Friday, but he stressed that getting Greyhound off Seventh and L is "critical" to revitalizing the area. The building's location and poor design lend to loitering outside and complicate security, he said.

"It's the perfect storm of problems, and it's had a negative effect not only on that corner, but K Street and Westfield Downtown Plaza as well," Cohn said. "When Greyhound moves, it needs to be to a new terminal with a better design and security area. That would be good for the city - and good for Greyhound."

Benvenuti isn't the only developer who wants to construct a high-rise tower in the central business district, but he is the only one who has a civic carrot.

He has held Greyhound's lease for nearly 18 years. The company has about seven years left on the contract, but the terms allow termination with two years' notice.

"They've been great tenants, never missed a payment," Benvenuti said. He declined to say exactly where he's proposing the depot move.

"It's a sensitive issue, and I don't want to get ahead of the city," Benvenuti said. "We have a number of places that would be good locations, and we want to work it out with the city and our tenant."

His Tower Development and Tower Realty Group is proposing a stone, metal and glass tower, dubbed 701 L, that would feature ground-level retail, office space and apartments.

City officials two weeks ago received three other K Street revitalization plans from developers and property owners.

One proposal by Sacramento-based Evergreen Co. and friends envisions new retail and apartment space on the 700 and 800 blocks between K and L streets - including a Nugget Market grocery store where the Greyhound terminal now stands.

Tina Thomas, a local development attorney representing the Evergreen Co., called the 701 L tower proposal "good news" and says it doesn't pose a problem for her group.

The key point, she says, is "if you're going to build residential there (downtown), you have to move Greyhound. ... People won't move there if it's not cleaned up."

Benvenuti and his group say the downtown redevelopment rumblings - and the possibility of the city seizing the Greyhound depot as part of a revitalization plan - aren't what prompted them to forward the 701 L proposal.

"Danny bought the property 18 years ago with the intent to develop it," said Tower Realty spokesman Daniel Collins.

City officials approached Benvenuti "six to eight months ago" about moving the bus depot as part of a larger redevelopment effort, Collins said, "and that's when we really got serious about this project."

The 701 L proposal is the latest in a string of high-rise designs that could alter Sacramento's skyline, including John Saca's 53-story hotel-condominium and Angelo G. Tsakopoulos' plan for the 29-story Parthenon office tower.

Standing at 430 feet, the project would be among Sacramento's tallest structures. The south tower would feature 70 to 80 luxury apartments and a health club overlooking a garden on the roof of the shorter northern office tower.

Below that, architects at Hellmuth, Obata and Kassabaum of San Francisco made room for parking, ground-level retail and underground residential parking.

HOK has designed several of Sacramento's most notable buildings, including the Wells Fargo Center, 1201 K and the Sheraton Tower.

Tower Development officials said Friday that the company would self-finance the project.

"We're serious about this," said Tower Development executive vice president Ted Kopecko. "This is not a drill."

[x_raided]

So that article basically says that this project is most likely to be built, right?

And also, this is a new proposal or it has been talked about before?

[x_raided]

Another question, is there a possibility the Asian Trade Center will be built in downtown somewhere?

[Dr.VitO]

Impressive design on that building and more of a glassy building for a change. I like it, i like it a lot!!

[sugit]

Originally Posted by x_raided

So that article basically says that this project is most likely to be built, right?

And also, this is a new proposal or it has been talked about before?

Benvenuti had proposed a tower on this spot back in the late 80's, during the last construction boom, but unfortunatly the economy killed it due to lack of financing and tennants.

This one looks solid right now.

[Dale]

Excited for Sactown ! Question: has any thought been given to freshening up Capitol Mall ? It seems awfully utilitarian-looking, what with those tinpot lamp posts and barren grass medians.

Or maybe it has changes since I was in Sac just a few years back ?

[sugit]

Nope, unfortunately still the same Captiol Mall landscaping

I would also love to see something done to that stretch to make it just a little more flashy and edgy.

The new proposed towers should def help in the flashy and showy area. But I wish something would be donw with the barren grass medians.

[Dale]

I'm guessing you're right, that the new towers will make the street look even more plain-jane by contrast, thus providing some impetus for the rehaul.

[UZWEEM]

The city of Sacramento has wanted to improve the landscaping along Capitol Mall for years. Unfortunately, it is designated a state highway, so the city is not allowed to improve it. (It was once part of the famous Lincoln highway, though I'm not sure exactly what highway designation it has right now.) Anyway, the city has been pressing the state to remove the highway designation for this street. But, it is a long, bureaucratic process that could take years. So, for now, we are stuck with the boring landscaping and the dated street lights...

[ltsmotorsport]

It's designated 275 right now. And ever since I first saw those street lamps, I wondered why they were there in the first place. They look awful.

I also hope that 701L will get going quickly. It seems like financing is there, and the mixed use in that area will be great.

[enigma99a]

Originally Posted by ltsmotorsport

It's designated 275 right now. And ever since I first saw those street lamps, I wondered why they were there in the first place. They look awful.

I also hope that 701L will get going quickly. It seems like financing is there, and the mixed use in that area will be great.

Yep and Greyhound agreed on the move. Now just gotta get them moved and hurry on the new station

[sugit]

A poster from SSP went to a breakfast this morning about the DT high-rises planned that include Ray Kerridge and John Saca....some good new for The Towers

_________________________________________________________________________

This morning's breakfast was cool. The only things of note were that Kerridge talked about how height shouldn't be an issue, but design should since buildings tend to brand their cities. He thinks new structures should be iconic.

Saca said that response has been "overwhelming" and that he has enough for financing of the Towers. He also said he is optimistic that Phase II will begin around the same time as Phase I. He said that the hotel is not determined yet, but they are still in negotiations with a couple companies for a 4-4.5 star property.

[sugit]

I just found out Aura received permission from the state to start taking deposits for condo's and they DO have an application in file with the city. Deposit is 5K

Maybe Fall is a realistic timeline.