Sacramento Business Journal
Unstable home prices and high construction costs are getting the blame for another condo project flame-out. After a long window for exclusive negotiations with the Capitol Area Development Authority, San Diego's Lambert Development has shelved plans for 53 condos at 16th and P Streets in Sacramento.
Despite the offer of free land, market conditions would've created wafer-thin profit margins at best. Lambert had been considering demolition to clear the site for a four-story building.
That means the site is available again, if developers can figure out how to create high-density housing on these urban infill sites without going broke.
There appears to be progress at another CADA site, however. After hitting budget overruns, The Capitol Lofts on R Street partnership is being reorganized, with Holliday Development of Emeryville moving into the managing partner slot. Holliday, which has extensive experience building lofts, has told CADA to expect construction next year. Former managing partner Regis Homes had said the project was $4 million over budget.