Wednesday, January 26, 2022

Lot X 30-Story Proposal

201 N Street - Southern Land Company proposal

In October of last year, the Southern Land Co. purchased Lot X (201 N Street) for $16.75 million in Downtown Sacramento and has since proposed building a 30-story residential tower with 237 units. The 2.5 acre site sits directly across from Crocker Park and would also include offices, retail, restaurant and parking for 426 vehicles. The project consists of residential tower rising up 350 feet with an open-air pool 165 feet high and a five story office building constructed with mass timber.

201 N Street - Southern Land Company proposal
I believe this proposal is far too large for Sacramento to support. It’s being marketed as a luxury high-rise apartment homes, but history has shown us that the only successful residential buildings built downtown in the last 40 years have been six and seven stories with 70 to 90 units. High-rises like this have higher costs for materials, to build this tall the rental costs will be incredibility expensive and I don’t think the demand will be high enough so that the cost pencils out. Thus far, no construction cost estimate has been given and ABC10 reports that the developer hopes to break ground in 2023. As of today, the Sacramento Planning office has not received any plans from the new owner for the Lot X address (201 N Street). I've been told plans will be submitted soon.
201 N Street - Southern Land Company proposal

201 N Street - Southern Land Company proposal

201 N Street - Southern Land Company proposal

201 N Street - Southern Land Company proposal

201 N Street - Southern Land Company proposal

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2 comments:

  1. AnonymousJanuary 27, 2022 7:52 AM

    Quite an ambitious (and welcome) proposal bringing both much-needed residents and high-rise living to downtown Sac.

    Agree with you on feasibility considering Sac's track record and the lack of jobs that can afford that kind of rent/mortgage... from my outsider's view, the local employment base really hasn't changed since the Great Recession, so it's easy to foresee the same result as Saca's hole in the ground.

    However - maybe I'm being overly optimistic - could the rise in remote work bring in folks from outside Sac to fill up a development like this? For example, I work in big tech, in a big city, paying big rent... and many of us aren't going back to the office, ever. And some companies won't lower salary too much, if at all, based on where you relocate. Wonder if this changes the outlook?

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  2. AnonymousMarch 14, 2022 9:43 PM

    I agree. As evidenced by the kind of rents new midrise apartments are bringing in, it seems the demographics and desire for urban living have been changing. There's a huge demand for housing, we'll see if the time has come for developers take it to another level or not.

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