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.
Dang it! I'm not so thrilled with the progress on 16th Street. My neighborhood could be one of the best in America if we could get some of those parcels straightened out.
ReplyDeleteI've been thinking about doing an article about how much trouble Sacramento is in because of the real estate bust. I don't think it's sinking in.
At least it seems like the other 3 sties are almost ready to go.
ReplyDeleteJust like when Loftworks pulled out of sites 2 and 3, I think someone else is going to step in for site 4 like Ravel Rasmussen Properties did.
Looks like SKK Developments could've had their two sites they wanted so bad.
ReplyDeleteI went to that R Street Night Market last 2nd Saturday and saw CADA's table with photos and renderings of a few of their projects. I saw a couple renderings that looked like they were both of Lambert's propsals. Both looked very sleek and modern. Lots of blue glass and squared angles.
And regarding R Street Capitol Lofts, what does "expect contruction next year" actually mean? January? June? December?
It means Fall of 2008.
ReplyDeleteInteresting. I know the big hang up was the total construction cost... has there been any change to the project like additional units? Or is the project going to be phased?
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