Sacramento Development News

[sugit]

More news...initial renderings look awesome.

http://www.sacbee.com/content/news/s...13931021c.html





Railyard suitor weaves vision of 'urban village'

A developer's proposal foresees a mixed-use cityscape that would transform downtown.

As it pursues its purchase of the 240-acre Union Pacific railyard, Millennia Sacramento came out Friday with a revised plan to show its commitment to the deal, a plan that calls for 10,000 units of housing - more than twice the amount initially envisioned.
The developer unveiled its new plan to the city proposing a mixed-use "urban village" jampacked with enough housing for 20,000 people, as well as office, hotel and retail space. It also calls for a Railroad Technology Museum and a chic public market space similar to San Francisco's popular Ferry Building, and it reserves space for a downtown arena.

Developer Millennia Sacramento has been in purchase talks for the past 2 1/2 years with UP. Although talks continue, filing the development application signaled a "major breakthrough," said Suheil Totah, vice president of Thomas Enterprises, Millennia's controlling entity.

"This has been a very long journey to this point," Totah said at a hastily called news conference. "We are, and remain, committed to this project."

Totah said Millennia would begin working with the city on the application next week. The purchase deal with UP should close by year-end and, barring further hitches, construction could begin within 18 months.

Millennia's plan would be one of the nation's largest infill projects, with 37.6 acres designated for residential use, 39.2 acres for general mixed use and 25.5 acres for commercial and office space.

And instead of the 4,500 lofts, apartments and condominiums once proposed, the application calls for a whopping 10,000.

Sacramento's red-hot housing market caused the developer to more than double the number of units, Totah said. They will be both rental and for-sale, priced at market rate and for low-income residents.

Michael Ault, executive director of the Sacramento Downtown Partnership, said the plan clearly answers calls for more housing in the city's central core.

"The housing will activate downtown," Ault said, adding it also would help lure new retailers.

Kay Knepprath, a community activist who has pushed to save the railyard's historic depot, agreed Millennia's application signaled a major milestone.

She said progress on the planned intermodal, a major transportation hub that will include the depot, was stalled until Millennia's application was filed.

Now, an environmental study can begin.

"A big bottleneck has been opened," Knepprath said.

Millennia's announcement comes on the heels of reports that a trio of prominent local developers had submitted a competing offer for the railyard. The team of David Taylor, Tony Giannoni and Angelo Tsakopoulos said they joined the fray as they watched talks with Millennia make little progress.

Earlier this month, Carol Shearly, the city's new growth manager, told The Bee that repeated postponements of the railyard deal had "become a joke."

On Friday, however, Shearly voiced the city's strong support for the project and lauded the plan as a way to contribute to downtown's renaissance.

"We continue to have a strong partnership with Millennia," Shearly said.

Totah downplayed the competing offer, saying rumors were untrue that negotiations that began in 2002 had only recently restarted between Millennia and Union Pacific.

Mike Casey, UP's local project manager, said the railyard's position was unchanged and it isn't considering other offers.

"The door on that has been closed," Casey said.

Taylor, Giannoni and Tsakopoulos could not be reached for comment Friday.

In July 2004, Millennia announced it had reached an agreement with Union Pacific to buy the railyard and predicted the two parties would close the deal by the end of the year.

But the issues turned out to be more complex than either side imagined, Totah and Casey said.

During a title search, they learned that because a bank of the American River had been on a portion of the railyard, arcane case law placed nearly 30 acres of the property under the control of the California State Lands Commission.

"That caught us all off-guard," Totah said.

Said Casey, "We couldn't continue to negotiate with the concern that we couldn't close the transaction."

The issue was settled to the satisfaction of UP and Millennia on Thursday, allowing Millennia to go forward with the development application, Casey said.

The issue still needs to be settled with the state, Totah said.

The other major hurdle centers on the environmental cleanup of the Superfund site. As it continues its cleanup of the site, UP has discovered higher levels of toxic materials than anticipated, Casey said. That in turn changes the scope of work agreed upon by UP and Millennia, he said.

Totah also said Friday he has resigned from the Morrison and Foerster law firm to head a new Sacramento office of Thomas Enterprises and lead the railyard development effort.

[sugit]

L Street Lofts website is up. Accross the street from the 18th and L project in midtown. 8-stories, 95 for-sale units and 4K retail

I really like the design of this building

http://www.lstreetlofts.com

[ltsmotorsport]

What I don't get is that if they can put up an 8 story project in midtown, then why did CIM think that 8 stories was sufficient in DT?

[sugit]

I think there are a couple reasons for it.

1st, the CIM project was a ground breaking development, that was really the first large scale housing project in DT. LOT of risk involved. Plus, 225 units on that 1/2 block is still very very dense, it's just not tall. I think it's a little less than 200 units/arce. (225 /~1.25) The Towers is around 280 (754 units / 2.67 acre)

2nd: Plaza Lofts is all rental units, L Street Lofts are for-sale. While for-sale prices in Sacramento are making high-rise housing possible, rental rates are not even close to what other cities in CA get, and thus there is no way developers can build 30 story rental buildings and expect to get the rents necessary to make money. The CIM project cost the city 16M dollars for that very reason. The Towers and these other projects can afford to build higher and most costly cause people will BUY a unit for that amount.

In the end Plaza Lofts is going to be a great project for DT. And to think about it, really..none of these other projects have even broken ground yet, at least we know for a fact that Plaza Lofts will be built.

[ltsmotorsport]

Yeah, yeah yeah. You and your facts and what not.

[sugit]

[hellobubba]

It has me very worried that Zeiden's propopsal could potentially beat Evergreen's. Though Zeiden's would be quite "nice" with all those big brand names lined up and all... Evergreen has got the all the priorities right.

Residential first
Retail second

Even a novice like myself knows this. That is the only order you can work with. The shops follow the people, and it never works visa-versa. Downtown Sacramento has had many great shops for years, but few people even know. People from Roseville don't come down here to shop. And really... why should they? Have you ever noticed the resaurant crisis up there? You can feed those people anything, because there's such a high demand.

Zeiden's would end up like a strip mall version of DT Plaza. Evergreen's will work perfectly for the near future of Sacramento.

[shotsy]

I agree. And I really don't like that the project revolves around specific tenants that might not be around that long.

[ltsmotorsport]

Good point about the tenants. At least with Evergreen, there will always be that solid residential base.

[ltsmotorsport]

A little something I did in my spare time.



Blue= towers u/c, approved, proposed

Red= large infill




Also, an updated version of the original map.

[ltsmotorsport]

Now Saca has a third condo project. This time it's 300 condos at 10th & J.

Towering plans for downtown
High-rise condos proposed; developers, buyers enthusiastic
By Mary Lynne Vellinga -- Bee Staff Writer
Published 2:15 am PDT Friday, July 1, 2005

Developer John Saca continues to push for the clouds. Even as he works toward breaking ground this fall on a pair of 53-story hotel and condominium towers, he has started planning hundreds more high-rise condos downtown.
This week, he bought a half-block of property at 10th and J streets that city leaders have long hoped to see redeveloped. The tentative plan: about 300 condos.

He also has joined a development team proposing to rebuild the 700 and 800 blocks of K Street with ground floor retail and about 955 condominiums on top.

Other developers have been pouring into the market, too. Suddenly, downtown Sacramento is a hot spot for high-rise living, even though not a single tower has been built yet.

In total, more than 2,200 condominium units are currently being proposed for downtown.
It's a race to see which one will get started first. Saca and Denver developer Craig Nassi both say they hope to break ground in the fall. One 15-story project already under construction, a Residence Inn at 15th and L streets, will feature 30 condominiums.

Nassi has started taking reservations for units in Aura (www.Auracondos.com), a 38-story tower he's planning for 601 Capitol Mall, site of a former city parking lot. He has opened a sales office on the site.

"We've had an overwhelming response," Nassi said. "I think the market has a lot of depth. I think there's a good deal of wealth in Sacramento and the surrounding geographic area. There's a great deal of baby boomers, who are our No. 1 clientele, and there are a lot of Bay Area people who see the value of sizing down and getting a good bang for their buck."

Sacramento's worsening traffic also helps, he said. "There's never no traffic.... People are starting to realize they're crazy to drive an hour each way to El Dorado Hills if they don't have to."

Nassi's strikingly modern glass tower, with the balconies massed to create the impression of curving lines sweeping down the sides, was designed by Daniel Libeskind, who created the master plan for the rebuilding of the World Trade Center in New York City.

Nassi tried to buy the 10th and J site as well, but the deal fell through.

That's when Saca stepped in to buy it.

Saca said buyer response to his Capitol Mall project (www.sactowers.com) also has been stronger than he expected. He said he would begin taking reservations in July.

"The support we've gotten, and the interest, has far surpassed anything I ever envisioned," he said. "That's why we're doing more projects."

Other developers proposing condos include a partnership of the Cordano family, Steve Eggert and St. Anton Partners that proposes to build a 23-story high-rise at 11th and J streets, replacing a dreary block of storefronts that includes a burned-out furniture outlet.

Landowners Moe Mohanna and John Lambeth also have proposed a high-rise condominium and hotel project at 1215 J St.

A year ago, city officials were struggling to get ownership housing built in the central city.

But with rents fairly stagnant, interest rates low and home prices seemingly locked in a never-ending rise, condos suddenly make a lot more sense than apartments.

"It's simply exhilarating to go from a position of having to bribe and cajole people to invest money in downtown Sacramento to a position of being barely able to keep up," city economic development director Wendy Saunders told attendees at a June forum on high rise development.

In an interview this week, Saunders said she's "a little nervous" about whether all the proposed condo projects actually will get built.

"I hope there's really some substance there," she said.

Saunders called Saca's purchase of the 10th and J property a good sign.

"If John Saca has so much (interest) that he felt bullish enough to spend a few million dollars more, that's really a good sign. That's a lot of money to put at risk."

Greg Schmidt, a developer who sold the property to Saca, wouldn't reveal the exact purchase price, but said it was "close to" the $7.8 million he said Nassi had agreed to pay before his deal with Schmidt fell through.

Saca and other developers say one of the keys to selling downtown condominiums in the vicinity of J and K streets will be getting the Greyhound bus station moved and reducing the preponderance of single room occupancy hotels in the area.

"Until that's cleaned up, you'll never get the project you deserve," Saca said.

The owner of the Greyhound station building, Danny Benvenuti, recently announced his own office development proposal and said he would help relocate Greyhound to another one of his properties.

The single room occupancy hotels pose a thorny issue for the City Council, which must balance its desire to redevelop downtown with the needs of the low-income people who rely on such shelter.

As a first step, the council has asked the Sacramento Housing and Redevelopment Agency to inventory the hotels and come back in nine months with a rehab strategy and plan for new units.
_____________________________________________________________________


Good to see this article, but I was surprised to hear that Saca bought 10th & J, since I hadn't even heard that Nassi's deal fell through. I wonder when we'll start seeing docs for this one?

I really do hope that Nassi can pick up that 1/2 block at 7th & J, as it's as bad and where St. Anton wants to put their project down J @ 11th (also good to hear confirmation that the project will get rid of the old Copenhagen store).

[enigma99a]

Thanks to LOOKnUP at SSP...

EXCLUSIVE REPORTS
From the July 1, 2005 print edition

Saca proposes two more condo towers, on K St.
Mike McCarthy

Staff Writer

Developer John Saca plans to build two high-rise towers of up to 500 condominiums, plus ground-floor retail, on the 700 and 800 blocks of K Street in downtown Sacramento.

Saca said this week his proposal wouldn't need a subsidy and could be built independently of the development process kicked off by the city's request for project ideas on the two blocks this year.

But he said he won't build the towers unless the city commits to creating a master plan for the two blocks, including the L Street side, that includes moving out the Greyhound bus station and the downtown hotels where low-income people live.

Saca's new condos are the latest shift in the emerging plans for the south side of K between 7th and 9th streets, a largely moribund strip that got builders' attention this winter when the city asked for the development ideas. It received two -- one originally for apartments, and one for stores from Z Gallerie owner Joe Zeiden -- and is expected to pick one this summer.

As for Saca's latest proposal, "that's great," said city economic director Wendy Saunders. "But we'll have to see what it means."

City wants Zeiden, Saca to team up

Saca's idea -- not to be confused with his separate plan to build a condo tower and hotel at 301 Capitol Mall -- is the newest change involving a proposal made in April by Dan Cole of The Evergeen Co. and apartment builder Hank Fisher, working with K Street landowners Mohammed Mohanna and John Lambeth.

Cole's group proposed more than 900 apartments, plus stores on K. Many of the rentals would have been built where the Greyhound bus station now stands but that idea was derailed, partly because developer Danny Benvenuti plans to use the Greyhound site for an office tower.

Saca recently joined the Evergreen partnership and is now leading its effort on K Street.

His group is pitted against Zeiden, who proposes 86,000 square feet of mostly ground-floor retail along K Street, plus a small number of homes and offices on the upper levels.

Although Zeiden owns two buildings on the stretch, he would require the city to buy other property, including the Mohanna-Lambeth buildings that constitute more than half of the project area on K Street.

The conflict could be resolved if Zeiden works with Saca's group. The city is pushing them to cooperate.

The condo plan so far

In the meantime, Saca plans to build the K Street towers on land controlled by him and his partners -- mainly Mohanna -- plus any property the group may assemble on its own. He does not plan to use adjacent parcels that belong to Zeiden, or others that were part of the area covered by the city's request for proposals.

Saca's ideas are rough so far, and he is still examining the site's potential. But he wants to build 400 to 500 condos for sale, up from an earlier plan for 300, in high-rises that could rise more than 20 stories, and probably not fewer than 15.

The towers would need a footprint of 11,000 to 14,000 square feet each, and would be built at the back and on top of the partnership's buildings on K Street.

On the ground floor, stores would take about the 50 first feet back from K Street. Saca estimated that some 70,000 square feet of retail could be built. The historic buildings would be restored.

"We need to do a lot of research before we really determine the sizes of things," he said.

Prices for the condos would probably start at around $300,000. Saca said he expects to hand the city a detailed development application within 45 days.

Money the city might have spent on a subsidy, or to assemble land, can be used instead to landscape and improve the streetscape around the project, Mohanna said.

Reports big interest in mall condos

Saca said he decided to build on K Street because he has received applications from "thousands" of would-be buyers financially qualified to buy units in the two 52-story condo towers he proposes at 301 Capitol.

He figures his 765-unit Towers on Capitol Mall will be 60 percent pre-sold before it breaks ground.

"The market is definitely ready," he said. "This will also do well."

He wants the master plan from the city to include provisions for moving the bus station, fixing the streetscape, and moving the single-room-occupancy hotels in the immediate area.

"We need a commitment from the city that they'll do all three," he said. "The reality is, we'll never get off the ground without that commitment."

Retailers and homebuyers, he said, probably wouldn't come to the site because of the dubious characters who hang out around the hotels and the depot. Remove them, and fix up the street, and what are now the two worst city blocks could be the two best, he said.

The city commitment could be oral or written, he said, just so it's convincing.

City couldn't get it all at once

With the city's cooperation, the project could get entitled by mid-2006 and some initial construction could begin next year. The market would drive the project, Saca said.

He said he hopes the city can get around its desire to have the whole stretch of K developed at once. In the real-world market, builders operate independently in master-planned communities, building their own sections as the market allows.

The high-rises would change the look of K Street, which is now dominated by low-rise buildings. But modern downtowns build up, he said. "It will make us a world-class city, like Baltimore, St. Louis and San Diego."

Mohanna, a member of the Downtown Sacramento Partnership business group, said it has made more housing its first priority, and this project has plenty of housing, compared to Zeiden's proposal.

"We have a very credible local team doing a high-quality, innovative project," Lambeth added. "We've all been here 20- plus years. We live here and we want to take care of downtown."

"Our project has more economic impact for the city," Mohanna said. "It has more housing, that with retail will certainly make K Street successful, providing life at night."

The retailers won't come without the housing, he argued, pointing to businesses in his own buildings that closed because not enough people live nearby.

Saca said he is one of the most accomplished retail developers based in Sacramento, but he added that he is willing to cooperate with Zeiden "to see if he can be part of the project and bring his tenants to it."

If the city chooses Zeiden, Saca said, legal fights over eminent domain could delay the project.

Zeiden's response

Zeiden's camp said it's important that the stretch in question be all retail.

"It's not a lot of real estate for retail, so it's critical there be no gaps," said Zeiden spokeswoman Wendy Hoyt. "Neither property owner has that, or owns the critical corner parcels."

The high-rises, she argued, could create a "cavern effect" along K Street. But Saca's idea of creating housing along the back of the K Street buildings would support the retail Zeiden wants to develop, she said.

"We'd be delighted to move forward," Hoyt added, "regardless of the SROs and Greyhound."

City economic director Saunders said she has to figure how Saca's proposal fits into the procedure already in place for the site.

A developer will be chosen by a committee of City Council members on recess until late July. She said nothing can be decided until after they come back.

[hellobubba]

Since I still cannot post over at SSP, I have to reply here and hope someone notices...

If the SACFRG needs a website and a brochure, than I'm sure I could be of great assistance. I am a freelance graphic designer located downtown. I have loads of professional experience in graphic/web design, and would be happy to assist such a noble organization.

Let me know if you'd like my help.

Click to email me.

[ltsmotorsport]

I noticed, but I didn't know you couldn't post over at SSP. That sucks. You should PM a fflint or another moderator.

Anyways, we pretty much decided to do that last friday, but we don't want to spend too much on the website and looknup will help with the brochures (he is a graphic designer). You should've come to the last meeting too.

[hellobubba]

I've tried emails, with no response. When I log in at SSP I'm not allowed to message anyone or post replies. Basically all I'm allowed to do is read...

which I have been doing for a long time now.

If LOOKnUP needs the software to do the brochure, tell him to shoot me an email. Otherwise I'm available to do that project as well.

As for the website... I have free hosting space available. If you want a website, there would be no cost at all. Just let me know what you want to do, and I'll get it done.

It's the least I could do after reading all the great info you guys have been sharing. And yes I should've come to the last meeting... So hopefully it wasn't your last meeting

[sugit]

Maybe try and create a new ID...hellobubba1 or soemthing like that

[sugit]

Towers on Capitol Mall sells first 250 condos

Developer John Saca has insisted all along that interest was high for his proposal to build two 53-story towers with 765 condominiums and 276 hotel rooms in downtown Sacramento. This weekend, he proved it.

Prospective buyers paid deposits on the first release of more than 250 condominium homes at The Towers on Capitol Mall during a weekend sales event. With the 250-plus condos valued at a total of more than $150 million, that means an average price approaching $600,000. The figure is well above the Sacramento County average of $286,767 in the second quarter, according to The Gregory Group.

The deposits are fully refundable, according to project spokesperson Marcia Neese-Ooley, "until we get a little further along."

Positioned between the state Capitol and the Tower Bridge on the site of the former Sacramento Union newspaper building, the Towers would be bordered by 3rd, 4th, Capitol Mall, and L streets. The first tower would include more than 300 condominium homes. A luxury hotel, by an as-of-yet unnamed brand, would occupy the first 20 floors. The second tower would have more than 400 residences. Homes at The Towers on Capitol Mall would have up to about 1,600 square feet. Penthouses can be custom designed with flexible square footages.

"This is the largest sales launch we have ever experienced," said Robert Pontarelli, senior vice president for the Ryness Co., the sales and marketing firm for The Towers, in a press release. "The amenities and location of The Towers has made this the greatest value of any high-rise building in the entire region. This sales event has broken records not only in Sacramento but in the entire state of California."

Among the selling points for homeowners are: 24-hour room and concierge service, housekeeping, town car service, valet service, valet dry cleaning and a fully staffed lobby. Residents will also have access to a 7,000-square-foot hotel ballroom, conference rooms for functions, a $15 million 40,000-square-foot fitness center with a basketball court, a 10,000-square-foot spa and salon, 80,000 square feet of retail, a business center, privately walled and "lushly landscaped" grounds, a wine cellar with temperature-controlled private lockers, secured garage parking and a rooftop pool with barbecues, an outdoor fireplace and a full kitchen.

The release this weekend was the first of several planned, Ryness said, with an announcement on the next release to be expected "in the next few months." Only those who register on the Web site, www.sactowers.com, and are pre-qualified by one of The Towers' lenders will be allowed to purchase.

Earlier this month, Saca said construction of his $300 million project is set to start at the end of this year.

In a separate interview two weeks ago, Saca told the Business Journal that he has plans to build two high-rise towers of up to 500 condominiums, plus ground-floor retail, on the 700 and 800 blocks of K Street in downtown Sacramento.

Saca said he won't build the towers unless the city commits to creating a master plan for the two blocks, including the L Street side, that includes moving out the Greyhound bus station and the downtown hotels where low-income people live.

[Whose Homepage]

Man, Sacramento is BOOOOMING!

There's an article in the business section of today's San Francisco Chronicle describing the project, along with a picture:



It sounds as though approval is fairly certain.

[enigma99a]

Nassi said yesterday that more projects are planned past his current 'Aura' and 'Epic 50 story' projects.

I would think Nassi would make Epic taller then the 615' towers on Capitol Mall. He thought the 38 story Aura was underbuilding, so I would expect his other future proposals to be tall.

[Whose Homepage]

There's talk of future taller projects in the article.