Record High Office Vacancy

As reported by the SacBee, The Sacramento region office vacancy rate increased in this year's first quarter to an all-time high of 23.74 percent, according to commercial real estate brokerage firm Cornish & Carey Commercial Newmark Knight Frank.

The rate increased 0.36 percent from the previous quarter, reflecting 366,000 square feet of additional vacant space in the region's 22 office submarkets. This is nearly equivalent to the size of "The Emerald Tower" being almost completely empty at 300 Capitol Mall which is an 18-story office tower and 383,238 square feet.

In all, vacant office space in the region totals nearly 16 million square feet. This is not the economic recovery we have been told was right around the corner. 

10 Percent Cut for New Sacramento Courthouse

The Judicial Council has endorsed a cost-cutting direction for court construction statewide, including the reassessment of 13 projects and further construction budget trimming on 24 projects. The council approved recommendations from the Court Facilities Working Group that are expected to yield significant, long-term savings throughout the $5 billion program.

The New Sacramento Criminal Courthouse must reduce hard construction costs by a minimum of 10 percent. Currently the proposed courthouse for Sacramento is estimated to cost $437,516,000 million. A 10 percent cut will reduce costs by $43,751,600 million. One recommendation made by the Judicial Council is that Sacramento reduces number of courtrooms from 44 to 42 to reflect reduction of 2 new judgeships, pending fall 2012 Judicial Council action to adopt update to new judgeship requirements, in addition to 10% reduction. The new courthouse budget would now be $393,764,400 million with a target to achieve low-cost construction methodologies.

Senate Bill 1407 was enacted in 2008 to authorize up to $5 billion in funding for new and renovated courthouses using court fees, penalties, and assessments rather than taxpayer revenues from the state’s General Fund. Since 2009, more than $1.1 billion in funding originally designated for courthouse construction has been borrowed, swept to the state’s General Fund, or redirected to court operations.

 

http://www.courts.ca.gov/documents/jc-20120424-itemD.pdf

http://www.courts.ca.gov/documents/oc12-Apr_24.pdf

Railroad Track Relocation

Sacramento railroad track relocation project (click to enlarge)

This project is relocating and realign about 2.3 miles of Union Pacific railroad track to make room for an expanded Sacramento Valley Station, which will be turned into an intermodal hub that will handle Amtrak and Capitol Corridor service as well as light rail and bus services. The cost to relocate the track is $45 million and paid for by both The Department of Transportation that won $20 million in federal stimulus money and more than $25 million in state Proposition 1B money.

The track relocation project began in April of last year is estimated to be completed in December 2012.

Wells Fargo Center 20th Anniversary

Wells Fargo Center under construction in 1991

Today is the 20^th anniversary of the Grand Opening for the Wells Fargo Center on Capitol Mall. As Sacramento’s tallest building at 423 ft, it has a distinctive curved copper roof caps the building, with a cleft in its middle as a postmodern architectural style. Inside the building there is a five-story clear glass atrium with granite and marble walls with a Wells Fargo history museum is located in the lobby and Il Fornaio Restaurant.

Wells Fargo Center under construction in 1991

The architect Hellmuth, Obata and Kassenbaum (HOK) designed the tower which also won the BOMA Building of the Year Award for 1994. This 502,000 sf. building occupies an entire 2.3 acre city block with a masonry & granite exterior. There are a total of 33 floors (30 on ground, 3 below), 13 elevators count and an adjoining 6-story parking garage.

Wells Fargo Center under construction in 1991

The tower was originally constructed for $120 million in 1992 and sold in 2000 for $130 million. The building was later resold again to to Hines’ Core Fund in 2007 for $237,250,000 million.

Wells Fargo Center 2008

Wells Fargo Center, 400 Capitol Mall, Sacramento, CA 95814, California, USA.

Cost Reductions Urged for New Sacramento County Courthouse

The Judicial Council working group overseeing the judicial branch’s facilities program is recommending that 13 planned courthouse projects be reassessed with the goal of significantly lowering their costs. Options to be considered in these projects may include significantly reducing square footage, undertaking renovations instead of new construction, evaluating lease options, and using lower-cost construction methods where feasible.

The Sacramento Courthouse is recommended to "Reduce Costs Now" by the Judicial Council. The current proposal includes: 44 courtroom, 405,500 sf., and an estimated total cost: $437,516,000. Expected completion: 1Q 2015

The committee will also recommend to the Judicial Council that the remaining 25 active projects funded under Senate Bill 1407 continue as planned, but undergo other cost reductions as they proceed. See the list of recommendations here.

The working group’s recommendations are expected to be considered by the Judicial Council at its April 24, 2012, meeting. The council can accept, modify, or reject the recommendations, which will be posted on the California Courts website.

http://www.courts.ca.gov/facilities-sacramento.htm

Arena Effort Dead

Yesterday Mayor Kevin Johnson admitted “Is the deal as we know it dead? Absolutely.”  According to the Sacramento Press, The breaking point for Johnson, he said, was the Maloofs’ refusal to put up collateral for the city’s refinance of their loan. I personally can’t believe this was not in the agreed upon in the March 1st framework… but apparently it wasn’t. In addition, the Maloof’s also refused to pay $3.26 million in pre-development costs for a building they would not own. This doesn’t sound all that odd to me. Why as a renter of a new building (Maloof’s) would they also pay for the pre-development costs? Those costs are traditionally picked up by the owners which in this case would be the city.

This is all a sad state of affairs. If the Kings go, don’t think the city will just pick-up an expansion team to fill the void. … that would be an additional cost of $100 to $300 million payed to the NBA and its owners.

Sutter Medical Center Expansion

Anderson Lucchetti Women’s and Children’s Center

Construction crews continue work on the spanning structure over L Street, which is scheduled to be completed this summer. The next step is connecting the steel of the spanning structure with Sutter General Hospital on the second, third and fourth floors and completing the exterior. The spanning structure includes two walkways on the second floor – with one for patients and staff, and another for family and the public – clinical space on the third floor with a connection to the operating rooms in Sutter General, and staff lockers and mechanical rooms on the fourth floor.

Anderson Lucchetti Women’s and Children’s Center

The look of the Women’s and Children’s Center is being completed as metal panels are currently being installed. This will include copper panels similar to the look of Capitol Pavilion on the first floor.

Anderson Lucchetti Women’s and Children’s Center

Anderson Lucchetti Women’s and Children’s Center walkways

After the spanning structure is completed, the construction team will work on two other bridges that will connect the entire campus: one over 28th Street connecting the Sutter Cancer Center/Buhler Building to Sutter Capitol Pavilion, and an open-air bridge connecting the south parking lot on 29th Street to the Anderson Lucchetti Women’s and Children’s Center.

Anderson Lucchetti Women’s and Children’s Center

Anderson Lucchetti Women’s and Children’s Center

153.5 ft tall structure
$600 million project
To be completed in late 2012 Sutter Medical Center, Sacramento campus expansion will be completed in 2013. http://www.sutterdistrict.org/

626 I Street Rehabilitation Project

626 I Street Rehabilitation Project

This project will be completed in September 2012; it will consist of 108 units for extremely low income elderly persons. Rehab cost $19.4 million.

626 I Street before rehab March 2010

SHRA Report

La Valentina Station Construction

Corner of 12th and D
David Baker + Partners Architects
$27 million project
81 units of affordable housing
Scheduled to be completed in summer 2012. One of the first near-zero-energy projects in the Sacramento area.

7th & H SRO Construction

7th & H SRO Construction

Eight story 102 foot tall building
$47 million project
Developer and owner Mercy Housing California
122 studios (325sf) and 28 one bed room (500sf) units
Sixteen parking spaces, retail and health clinic on the ground floor. Construction is expected to be complete in October 2012

7th & H SRO Construction

7th & H SRO Construction

7th & H SRO Construction