Remember when... 201 N Street Is For Sale

Lot X Sacramento - 201 N Street

It was only three years ago a mixed use high-rise was going to be built at 201 N Street. At one time it was to be 28-storys, and then later increased to 32 stories. Then last year around August the proposal was put on hold... and you know the rest of the story. The land is now for sale, 2.5 acres by the developer Southern Land Company and the asking price is $19.9 million. I wonder if the city of Sacramento had offered to subsidies this residential high-rise it could have been financially feasible? I am not surprised this was canceled, history has shown us again and again that Sacramento currently can't build a residential building over eight floors and be successful. These aren't my rules, this has been proven over and over again in the last several decades. The only exception to the rule is Penthouses at Capitol Park apartment built in 2007 above the Residence Inn Sacramento Downtown at Capitol Park. The top three floors of the fifteen story building is residential, maybe future proposals should consider this method instead of above above offices or one hundred percent residential. I hear the city is looking to also increase hotel rooms near the Golden One Center. Turton Commercial Real Estate 

On-Hold: 201 N St. Residential High-Rise

It’s been reported in the Sacramento Business Journal that the proposed 28 story residential high-rise at 201 N Street has officially been paused. With no activity with the city of Sacramento to secure building permits since 2022, it’s a safe bet Southern Land Company is feeling the pinch from the slowing economy. The proposed project exterior looked to be made with high quality materials and lots of details. Does Sacramento have enough deep pockets to rent out or own enough of these high-rise units to make them profitable? I would say no, that is why downtown sees lots of residential projects being built up to eight stories, after that the construction costs to go taller are to high and there are not enough people in Sacramento willing to pay that high amount to live there. I could make an extensive list of all the failed high-rise residential projects in Sacramento in the last 40 years, this might be another.

Lot-X Proposal Plans Revised

Southern Land Co. who originally proposed a 32 story residential tower and 5 story office has now revised the plans to include a 26 story tower and a 14 story building. The shorter building is replaced by  the 14 story building and the 32-story is now 26-story.  The developer plans to release more details in the coming months and the start construction in the second half to 2023. I believe shorter towers have a better chance of being built in Sacramento, and history has shown us this. I will be both shocked and pleased to see this proposal built. Sacramento Business Journal

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

Luxury High-Rise Proposed For Lot X

In a partnership between Southern Land Company and the Sacramento Kings, a 28-story mixed-use luxury high-rise has been proposed at Capitol Mall and 3rd Street in Sacramento. What makes this project unique is that it would be constructed with mass timber. To learn more about this largely untested method, click here.

The Southern Land Company purchased the 2.56-acre site yesterday with great fanfare from nearby Crocker Art Museum and Sacramento Mayor Darrell Steinberg. The proposal would have 28-floors, 225 luxury apartments and 80,000 sf office space. Construction could begin as soon as 2023 and completed in 2025. At this time, neither a cost estimated or rendering have been given for the proposal.

I think this proposal is ridiculous at a time when nearly 2 million square feet of office space has been put back on the market in the last 18 months. Also, with so many others similar high-rise proposals failing over the years, I wonder what makes the developer this time think 225 high-end renters will want to reside there? Sacramento has successfully built and filled many mid-rises up to six stories, but not high-rises where the costs to build are much greater. Kings press release.