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.