Friday, July 13, 2018

10th & J Street Proposal Progress?

Over 10+ years ago this corner was getting primed for development, John Saca went through all the planning process and paid for both the entitlements and EIR. Shortly after getting the green light to build the economy started to fall into a recession. Today Sotiris Kolokotronis and Saca Development have come together to develop the land.

Their proposal is still in the early stages but the vision is a 200 room hotel and 250 apartments. With entitlements still in place for the previous project, getting approval from the Planning & Design Committee and financing might be their biggest hurdles. The Sacbee’s reported that last year Saca asked the city for some assistance, so having Kolokotronis join as a partner might give the proposal assistance the city won’t be providing.

The original Metropolitan proposal had 320 condos and 190 hotel rooms with 13,000 sf ground floor retail. With fewer apartments and ten more hotel rooms, my early guess is it might reach 300’. But we won’t know anything till the end of the year when the developers submit their plans to the city. City Council member Steve Hansen is “Cautiously optimistic” that work could begin at this location, and I totally agree. There are a lot of factors that need to come together before this project can succeed, so we better wait till next year before getting to excited.

Thursday, June 28, 2018

New Courthouse Gets Funds to Build

With the passage of the 2018-19 California State Budget yesterday, Sacramento will get a new 18-story glass-walled courthouse on the edge of the railyard site. After 9 years of delays and reducing both its size budget, the $490 million, 53 courtroom project is scheduled to begin construction in the summer of 2019 and competed in 2022.

New Sacramento County Courthouse on H Street between 5th & 6th Streets

Originally, the courthouse was to be funded by the 2008 bond SB1407, a $5 billion fund to rebuild courthouses around the state. The bond fell short by $1.4 billion by a combination of declining revenue from court fines and fees. In addition, Governor Brown diverted funds in 2012 from the courthouse bond to backfill the state’s budget and those funds have never been returned.

Project Description:
538,000 sf
270 feet tall
Lot 41 in the Railyards
53 courtrooms
71 basement parking spaces

New Sacramento County Courthouse on H Street between 5th & 6th Streets

Monday, June 25, 2018

Imperial Tower Renovation

The Imperial Tower, formerly known as the Wong Center is a 12-story mixed-use office/residential building consisting of 187 residential units and 10 commercial spaces. Built in 1973, this 45 year old building will receive $35 million in rehabilitation and development. Interior unit improvements will include new cabinets, counter-tops, flooring, energy efficient appliances, kitchen sinks, window blinds, heating, toilets, lighting and paint in kitchens and bathrooms.

Ten units will be brought into compliance with Americans with Disability Act (ADA) requirements and applicable state accessibility standards. Common area improvements will include new flooring, handrails in hallways, hallway lighting and elevator cab upgrades. Exterior improvements will include new roofing, concrete repairs, paint and site signage. Additional improvements may be completed if there are cost savings and/or remaining construction contingency.

The property is located at 331 J Street in Downtown Sacramento, no date has been given for when the job will begin. City Council Report

Monday, May 21, 2018

Proposal Gets Shelved

A model for a 2007 proposal by Fulcrum Properties to develop a 28-story
tower and complex on the West Sacramento river front.

It’s always sad when big proposals get shelved. In 2007, a proposal from Fulcrum Properties was to develop a 28-story tower and complex for the state on the West Sacramento river front. Back then, the idea was that the state (Dept. of Natural Resources) could lease the space for 10 or 25 years eventually purchasing the structure. The rational was the state could spend far less up front, and the costs of maintaining the building would fall on the private sector owner. Once the real estate market collapsed, the state back away from this proposal without compensating the developer for time and money spent on the proposal.

20-story state office building to house the Dept. of Natural Resources
at 7th & P Streets. To be completed in 2012.

Today, the Dept. of Natural Resources will be moving into a new office tower at 7th & P Street that’s expected to break ground sometime this year and competed in 2021.

The Bridge District in West Sacramento 2006 vision

Source for history of Fulcrum proposal: Sactown Magazine 

Tuesday, April 17, 2018

Colliers 1Q 2018 Sacramento Office Research & Forecast

The Sacramento office market has improved to pre-recession levels and according to Colliers, the Sacramento office market is now seen as a safe haven for investors. Rental rates increased 2.7 percent over last year with Class A downtown reaching $3.00 per square foot.

Colliers 2018 1Q Sacramento market indicators

Big investment sales. According to a national office market study published in February by investment auction platform Ten-X listed Sacramento as one of the top five “buys markets” in the U.S. Colliers believes this is true because demand is resilient and the construction pipeline is sparse. The sale of David Taylors 621 Capitol Mall high-rise tower for $161 million set a new standard for Class A per square foot at $439.49.

Colliers 2018 1Q Sacramento summary of statistics

Even with all the positive news, Colliers does not see development in large scale (private high-rise construction downtown) returning to the Sacramento market in the near future. Office rates still do not justify the cost of new construction, hence no new speculative office projects in the first quarter of 2018. Until rents and values rise nearer or replacement costs, we will likely see development in the region to focus on government and healthcare build-to-suit, with any speculative capitol going toward rejuvenating existing spaces or building apartments and warehouses. 
Colliers 2018 1Q Sacramento Office Report

Thursday, March 22, 2018

CADA Site 21

CADA – Site 21, 93 units, height 115 ft  (New Mixed-Use Building)
1522 14th Street, Sacramento, CA

CADA Site 21 proposal goes to the Planning & Design Commission today. This is a fine project and one Sacramento can support. 10 years ago Sacramento could only support residential as high as 5 floors and now were up to 9. Anyone who expects the city to leap into the high rise living better take a step back. We should be lucky this is going up, an apartment building over 50 years old will be demolished and the local preservationist could not find a way to make it an historic structure.
CADA – Site 21, 93 units, height 115 ft (New Mixed-Use Building) 
1522 14th Street, Sacramento, CA

Tuesday, March 20, 2018

$520MM Tower To Rise

The $520 million headquarters building for the Dept. of Natural Resources is expected to break ground this fall. At 20-storys and 838,000 square feet, this tower will be the largest office building built downtown since CalPERS build their headquarters on Q Street in 2006.
20-story, $520 million CA Dept. of Natural Resource's Headquarters

The tower will feature 10,000 square feet of retail and public space, and auditorium with 300 seats, food court and pedestrian plaza. Improvements will also be made to the historic Heibron House. Completion is scheduled for 2021.

The Registry Bay Area Real estate