Sunday, September 17, 2006

The first casualty....

The Sacramento Business Journal reported this week that DR Horton has canceled plans for Library Lofts and Jibboom Street Towers.

While I am not surprised the Jibbom Street Tower was canceled, I am a little surprised about Library Lofts. I thought this one was as good as gold considering the financial power of DR Horton and the counties desire to get rid of the building.

My thinking is that with the slow down of the market and Horton being a corporation, they have shareholder to answer to and taking a risk on a project that may not produce the great returns was not in the cards right now. Remember, these weren’t going to be luxury units, so the prices would be lower, and risk probably be higher with the raise in materials.

We all knew this was coming at some point. There was no way that all the condo towers proposed would get built. This one hurts since these units, while not "affordable" were going to be built targeting a much more moderate household income, which we all know is needed amongest all the higher end product on the market right now.

The key is to still get as much mixed use housing built during this boom as possbile. In the last couple of years there have been about 550 units completed, and about 1500 under consruction, in addition to over 600 hotel room, including one of my favorite projects, Joie de Vivre at 926 J Street. That could be a huge jump in people in and around downtown in the next couple of years.

To me, the most important projects to see get built aren't the biggest ones, but the ones that will create the most synergy with what is already built and under construction, like Cathedral Square Tower, The Metropolitan, 700 K Street, 800 K Street, 10th and K, Crystal Ice, and the other two East End Gateway sites.

Speaking of synergy, will some developer PLEASE buy the surface parking lot at 16th and J and build housing or a small hotel on it!! The folks at Loftworks would have been smart to pick up that property when they first rehaded the Elliot Building. After what has happen on that corner, I'm sure the owner is holding out for a kings randsom.

There was also a note in the article that Aura has financing and is simply waiting for permits to get going. Groundbreaking should be middle to late next month.

23 comments:

TowerDistrict said...

was there mention of a back-up plan for the two sites? what will happen with jibboom? weren't there other developers who also submitted plans for that site?

the library lofts shouldn't have been canceled. in fact they should just sit on the proposal for one more year, then start building when the first phase of the railyards begins construction on 5th street - just 3 blocks away.

LivingInUrbanSac said...

There were other developers that put proposals in, Saca, Dain Domich and Kolokotronis.

With so much on Saca's plate, I'd like to see Domich or Kolokotronis make a run at in, esp being local developers.

Dain Domich says they are still intersted in the site. Their plan was for a 200K building, which is prob a midrise, with office space, office condos, housing, and retail. The county really wants to get rid of the property, so I think something will happen, just not as big.

For the Jibbom site, Mike Heller wants to turn the site into a museum featuring the Thiebaud family art collecion, who is local and a very famous painter.

I think that could be very cool. Not sure what else he has planned for the site other than that.

TowerDistrict said...

i did some searching on the subject - to no suprise most of the info available is on your site :)

but i also came across a biz journal article that said the Montgomery Advisors out of SF was also a finalist for the 8th & I spot. The article said that they proposed 1,000 units of housing?!

that's huge. i wonder if they're still interested?

TowerDistrict said...

that doesn't even make sense to me...

that would have to occupy the whole block and probably stand no less than 70 floors.

LivingInUrbanSac said...

The 1000 units they proposed were accross two or three other sites the county owns as well, not just the BofA site.

robw340 said...

That's too bad about the Library Lofts ----I walked to the Post Office yesterday and went by the site -I would have not mind living there, specially considering they're supposed to be moderately priced (compared to the other high profile projects)...Hpefully something interesting will replace it.

LivingInUrbanSac said...

Previous Post Deleted

Denile - I have asked if you would like to post here to stay on topic. Your post has nothing to do with this topic of Libabry Lofts.

I suggest if you have so much to say on the topics you are writing about, start your own blog.

If you would like to comment on the topic, please do so.

Bob Wills said...

denile,

these guys at this blog wouldn't know anything about urbanity or urban design if it fell on them...

why else do you think they live and work in Sacramento?

LivingInUrbanSac said...

I’m starting to get the suspicion that Denile and “Bob” are the same person.

If you really have such little life that you need to troll a blog about a place you don’t even live near, you have issues.

Anonymous said...

I have heard that the Aura is actually in danger of not being able to get financing. Saca was forced to sell 100 more units to secure his. Mark Friedman is pulling his plan to build the 3000 units in the Triangle area in west sac.

This is not all bad. We need to walk before we run. Don't want to end up like San Diego. We need more small scale infill to bring the people downtown to start the critical mass. Good stuff livingurbansac.

Bob Wills probably works receptionist for an architecture firm in SF.

LivingInUrbanSac said...

I agree, the infill is just as important and we need to walk befor we run (and the towers is a RUN), but I think not having Aura or The Towers go through would be a huge loss given where they are currently.

I can see 100 more for Saca, but considering Aura has "reported" 80% sales that is weird. I have read many times, financing is done. What is reported a lot of times though can have holes in it

Even The Towers with over 400, I would imagine that would be satisfactory to lenders. I hear 50% is usually the amount lenders want

TowerDistrict said...

Speaking of walking before running, it seems Mark Friedman has plenty to keep busy with downtown. I gotta admit I was not a fan of either of his Triangle projects, though I'm not glad to hear they may be in jeopordy.

These are both Saca and Nassi/Liebskind's first projects, with more to come. I mean, we still have the Metro, 800 K, Epic and even the retail project on I street by Nassi. three of those have submitted EIRs.

Would you care to share where you heard these rumors? They're not hard to believe, but all three directly contradict very recent stories in the news.

Mr. Clean said...

Mahala, those are some big claims to have, you must be hanging out with some big hitters or you heard it from a friend who heard it from...

LivingInUrbanSac said...

I'm not sure you need to hang with heavy hitters to get this info. I get a lot of my info that turns out to be true from people who heard type stuff.

It's not always accurate, but a lot of times it is.

LivingInUrbanSac said...

also, the part that worries me about Aura is that they could have pulled an excavication and foundation pemit before the other permits are given. If they aren't going by the end of the next month, something is up.

From what I understand, they are not digging much, but I'm sure it takes time. With the rainy season coming, they are really pushing it.

Zwahlen Images said...

I don't know...often these rumors are started by the competition in an effort to make the other guy look bad. I have almost been caught up in a few rumors but within a day I realize it's just BS.

I hope that's the case here too.

TowerDistrict said...

just a thought... but couldn't there be building permit complications do to the fact the US Bank Building is right next door, and pouring a foundation right now?

it would seem risky (in my layperson's knowledge) to dig, pound, drill or whatever next to 621 for a little while.

Zwahlen Images said...

The difference between the Towers and Aura is that the Towers have an equity partner to pay for work that has been done up to this point, including permits. From what I remember Aura does not have one so no funds are available to much more than test piles.

My source says that Aura's just waiting for a "signature" and work will start in late Oct. Being that construction of any kind rarely starts at its intended time... the Towers started several months after the dates mentioned in the Biz Journal and Bee. I'm going to give Aura till mid Nov. then I will be questioning weather my sources are full of hot air.

Anonymous said...

You are all correct about rumors, you never really know. I do talk to a few of the people who know things of this nature. I did hear that Aura fell out of escrow but that doesn't mean it won't be salvaged. I am not at liberty to reveal my sources. I too do not want to see these projects hampered or haulted. I am glad the news media is still positive on the subject. They always want to portray gloom and doom for the housing market these days (except for today's bee headlines) housing on an uptick.

Livingurbansac- What about a topic on West Sac and the progress in the Broderick neighborhood?

LivingInUrbanSac said...

Mahala - Good idea about West Sac. I'll put that together.

Also, when you say it fell out of escrow..are you talking about Taylor selling part of Lot A to Nassi?

LivingInUrbanSac said...

Title Corrected..

Thanks to "bob" ..er Anonymous for pointing out the error in a way he only knows how. Looks like he is running out of topics to bitch about so he turns to spelling.

and no, I did not go to Sac State, I went somewhere a little out of reach for you. Given your interpersonal and communication skills though, I'm thinking you didn't even make it out of high school.

Anonymous said...

Funny. I didn't even notice that your site was Living In Urban Sac. Sorry for the mistake. I found out more on Aura. Apparently the deal was just restructured and HAS NOT FALLEN THROUGH! The ownership of the LLC has been allocated slightly differently because the bank would not fund as much of the project. Glad to hear it.

LivingInUrbanSac said...

Awesome news!! Thanks for the info Mahala!

Not getting a cutting edge building (even if I am not totally in love with it), and about 260 housing units would be a big lose.