1717 S Street Mixed-Use Construction

Foundation work for 1717 S Street Mixed-Use

CFY Development and CADA broke ground on this mixed-use project a few weeks ago. To get this project started, this $80 million project had to seeking $28 million in state and federal tax credits for affordable housing project. In 2018, the cost was originally $62 million, but in the last three years the rising price was due to higher construction costs. The building will have a five-story wood frame over 2-level concrete parking garage podium 159 apartments, community center, restaurant and retail, podium level courtyard, 126 vehicle parking spaces, 168 bicycle parking spaces. Scheduled to be completed in 2022.

Construction at 1717 S Street Mixed-Use 

Foundation work at 1717 S Street Mixed-Use 

Construction at 1717 S Street Mixed-Use

Rendering of 1717 S Street Mixed-Use building

Rendering of 1717 S Street Mixed-Use building

Capitol Park Hotel Renovation

Capitol Park Hotel at 1125 9th St, Sacramento, CA
receiving a $58 million renovation

In late January the former Capitol Park Hotel at 1125 9th Street in downtown Sacramento began the renovation process turning the hotel into a shelter for homeless. In 2019 the Sacramento CityCouncil approved lending Mercy Housing California $13.37 million to buy the hotel. The  renovated building will have 134 studio apartments and expected to be completed in about 20 months. It's shocking what the cost to renovate the units will cost at $445,000 each. A total cost of $58 million to only house 134 people. If it stays on budget, the project will come to $1,100per square foot. Once the city, SHRA and Mercy Housing California convert the Capitol Park Hotel into a triage center homeless shelter, “the City will allocate $300,000 for overtime police presence in the area immediately surrounding the rehousing shelter,” according to council agenda documents.

Capitol Park Hotel at 1125 9th St, Sacramento, CA
receiving a $58 million renovation

The Capitol Park Hotel was originally built in 1912, the building has had many purposes over the decades including as a furniture store and warehouse, two separate hotels, and a business college. Known as the Capitol Park Hotel since the 1960s, it was constructed as two separate buildings connected on all but one of its floors.

Across the street there is a proposal for a 14-story Canopyby Hilton hotel.

Capitol Park Hotel at 1125 9th St, Sacramento, CA
was originally built in 1912

1021 O Street “Swing Space” Office Construction

It appears this State Office Building is nearly finished with the exterior. The building skin still needs to install fins or smart shading to minimize direct sun on exterior glazing. This 10-story building is expected to be completed in the Fall of 2021 with 472,000SF of office space and at a cost of $423.6 million. DGS 10th & O Street State Office Building Project Summary.

1021 O Street "Swing Space" Office Bldg.

1021 O Street "Swing Space" Office Bldg.

1021 O Street "Swing Space" Office Bldg.

1021 O Street "Swing Space" Office Bldg.

Rendering of 1021 O Street "Swing Space" Office Bldg.

800 Block Demolition

Corner of 8th & L Streets

Last year the buildings at the 800 block of L Street began to fail and the city swiftly recommended the demolition. It appears they are now in the final clean up stage for the area. Demolition of that building and the one to the east of it has now made way for one of the six-story buildings planned for the site. The 800 block of K Street has been an empty hole for a couple decades now, but it now appears to be a staging area for reclaiming bricks from the demolition on L Street.  The historic Bel-Vue apartments on 8^th Street has been renovated and turning into affordable housing. When construction of the 800 block of K & L Street does begin, the plans are to build 148 apartments and have 10,000 square feet of retail in the area.

L Street looking north

800 K Street looking north

Reclaiming bricks from demolition at 800 K Street  

Historic Bel-Vue built in 1910 has been renovated for
affordable one bed-room apartments

8th Street looking south towards L Street

On the corner of 8th & L Streets 

Cleared block of 800 L Street looking north

Looking north towards L Street with the
Renaissance Tower above built in 1989

Colliers Analyzes Benefit from Bay Area Migration

Researchers at Colliers have teamed up with the Greater Sacramento Economic Council to look into future growth in the Sacramento area in a report "Why Greater Sacramento is Next Out West". Even with the acceleration of both companies and households fleeing California in 2020, Sacramento appears to be experiencing strong population growth in 2020. While urban high rises and dense apartment projects have fallen out of favor, a diverse and spacious market like Greater Sacramento has become top of mind for relocating residents and employees.

The report claims that Sacramento is California’s best kept secret and a top destination, part of its appeal is its close connection to the Bay Area and other U.S. markets are increasingly attractive for residents and businesses alike.

Overall, it’s a glowing positive report talking about how diverse the area is like the rest of the state in cultures, landscapes, and experiences. We will just to wait and see how things fare in the next few years.

Hospital Project Proposed By UC Davis Health

This projects not in the grid but it’s BIG for sure. Expansion plans are underway for a $3.75 billion, 16-storty hospital tower at 1 million square feet. The Sacramento Business Journal has reported that UC Davis is planning to replace both the North, South, and East Wings of the current hospital because it will not meet seismic safety standards by 2030. The new “California Tower” will have 400 beds raising the total capacity to 700 beds up from the current 625. They will be doing away with all the double-occupancy rooms to reduce infection transmissions. The proposal is currently in the environmental review process with hopes of breaking ground in late 2021 so they can begin to take patients by 2030.

Major Blow To MLS Expansion & New Stadium

A couple days ago, Rob Burkle who had been a major investor behind the expansion bid and the money to build a new stadium pulled out as the lead investor. A source told The Athletic's Sam Stejskal that Burkle cited rising construction costs of the stadium and the pandemic's impact on his businesses when telling commissioner Don Garber he was pulling out. The Athletic reported last month that Sacramento's ownership group never signed nor returned the long-form expansion agreement.

The city will now need a new majority owner who can quickly come in and repair the damage that was done by this news. MLS, meanwhile, must now begin to evaluate all of its options. The Athletic's also mentioned that if the Sacramento expansion bid fell through, MLS would do well to open the process back up. The first two markets mentioned by three sources: Phoenix and Las Vegas. 

Here's another perspective by Field of Schemes

New Sacramento County Courthouse Construction

Believe it or not, construction began on the Sacramento County Courthouse on November 16, 2020. Be sure to view the OxBlue webcam here. 

OxBlue Webcam of Sacramento County Courthouse construction

There seems to be a bit of confusion at to how tall it will be when completed. After I reached out to both the contractor, Clark Construction and the State of CA Dept. of General Services (DGS), they both confirmed with me the final height will be 270’. It’s remarkable that it finally got to this point after first being delayed in 2012 and again indefinitely in 2016 when then Governor Jerry Brown diverted funds from the courthouse bond to backfill the state’s budget and those funds were never returned. After a nine year delay, the state budget restored the funds in 2018 to begin the bidding process in 2019.  

OxBlue Webcam of Sacramento County Courthouse construction

Lots of sources to learn more about this courthouse. Clark Construction, California Courts, Environmental Impact Report Addendum, & OxBlue.

Back side of Sacramento County Courthouse rendering

1601 I Street Development Site

Back in May of last year this proposal from Newmark Cornish & Carey came forward within the “Theater” district in downtown Sacramento. A hotel or multifamily development could be built here. This is not a real proposal, just a land offering summary to those that might be interested in land located near so many popular sites. This summary lists both comparable hotels and multi-family developments that already exist or were under construction at the time. It also lists who the regions largest private sector employers are.

Colliers Sacramento Office Snapshot: Q4 2020

It should be no surprise that demand for office space has dropped in the Sacramento area and vacancies rose at the end of last year. The Colliers International office summary of the Sacramento market is uncertain. Short term leasing and subleasing spaces have seen demand drop drastically, total available sublease space on the market passed 1 million square feet.

The Colliers International summary also looks into how the State of California leases more than nine million square feet in Sacramento County alone. The State is also building three million square feet of new office space that will shift many of those employees in the leased space into the newly built State offices. It could also be considerably negative if a portion of the states 123,000 employees that work around the Sacramento region are shifted to full-time remote workers. In the long run, both these scenarios could depress the Sacramento office market like we have never seen before.

Read the Colliers International Sacramento Q4 2020 Office Report here.

1130 K Street Renovation

 A top to bottom renovation with two new floors of all glass being built on top. Not sure what city this is, I don't recognize the skyline. Scheduled to be completed in 2022. Up to 200,000 square feet available!

1130 K Street renovation with two new floors being built on top

1130 K Street renovation with two new floors being built on top

1130 K Street renovation with two new floors being built on top

State Capitol Annex

If you have not heard, back in 2017 a plan was launched to demolish the State Capitol annex on the east side of the building and replace it with a modern office building. In addition, the plan also includes building a private underground garage and underground visitors center. This is a billion-dollar plan at a time the State has a $54 billion deficit due to the impact of Covid-19. Read more in Sactown Magazine where investigative reporting puts a spotlight on this boondoggle with public monies!

In late September, Gov. Newsom said he wants to explore the possibility of 75% of state workers telecommuting after the pandemic ends.

Annex-Collage massing studies
 by Skidmore, Owings & Merrill

Colliers Sacramento Office Research & Forecast Report: Q3 2020

Colliers International is reporting that the Sacramento region’s market vacancy rate increased 10 basis points quarter-over-quarter almost entirely due to more than 136,000SF of vacant sublease space hitting the market. The amount of space companies are planning to give back spiked in the third quarter, of the 431,664 SF of new avable sublease space since the end of March, 286,045 SF of new sublease space hit the market alone in the Q3, a 73% increase in available sublease space in the last six months.

In new construction and forecast, the State of California is under construction on four new office developments totaling over three million square feet with the Richards Blvd. Office Complex representing the largest with 1.25 million SF. Download the report here.

Sacramento Skyline Photo

 

Safe Credit Union Convention & Preforming Arts Centers Construction

Safe Credit Union Convention Center construction - K Street

Both the Convention & Preforming Arts Centers are scheduled to be completed in March of 2021, about a five month delay from the original opening date of October 2020. The estimated $196 million renovation/expansion of the SAFE Credit Union Convention Center will add meeting rooms, exhibit halls and more lobby and kitchen space. At roughly $85 million, the renovation of the SAFE Credit Union Performing Arts Center will enhance the theater’s aesthetic appeal, improve its lobby and make the venue more accessible to disabled patrons. Work also will be done on the theater’s loading dock, which will allow it to host larger shows.

The stretch of 13th Street between J & K Streets looks to be a new dead space where a 60 foot wall now stands. This area use to have both a coffee shop & café and lots of outside seating, but now it appears to be sterile sidewalk... the forgotten west side. Image below to see what I'm talking about.

Safe Credit Union Convention Center construction - 13th Street dead space

Safe Credit Union Convention Center construction - J Street

Safe Credit Union Convention Center construction - corner of J & 13th Street

Safe Credit Union Convention Center construction - 13 Street

Safe Credit Union Convention Center construction - 13th Street dead space

Safe Credit Union Convention Center construction - 13th & K Street

Safe Credit Union Convention Center construction - 13th Street dead space

Safe Credit Union Preforming Arts Center construction - L Street

Safe Credit Union Preforming Arts Center construction - L Street

Safe Credit Union Preforming Arts Center construction - L Street

Safe Credit Union Preforming Arts Center construction - L Street & 13th Street

Safe Credit Union Preforming Arts Center construction - K Street back side

Hyatt House Hotel Construction @ 2719 K Street

Hyatt House Hotel - 2719 K Street, Sacramento, CA

Adaptive-reuse project of the historic Eastern Star Building that will transition into a Hyatt House Hotel with 128 rooms. An eight-story, 128-room Hyatt House in the historic Eastern Star Hall in midtown Sacramento.

The project is located across from Sutter's Fort State Historic Park. The original building was built in 1928 and three stories. The existing brick façade will remain and a new 8 story hotel will be inserted inside. Cost of construction $26.7 million

https://www.hrgarchitects.com/hyatt-house-sutter-fort

Hyatt House Hotel - 2719 K Street, Sacramento, CA

Hyatt House Hotel - 2719 K Street, Sacramento, CA