700 K Project to Move Ahead

Last night the Sacramento City Council approved a pair of unanimous votes on the financing plan that would allow the 700 K project to move ahead. As stated in the SacramentoBusiness Journal, D&S Development and CFY Development, have said with some financing approvals for tax credits and bond allocations expected in December, construction on the project of apartments and retail should get underway in early 2016.

700 K would have 137 apartments, both affordable and market rate, in a building behind a row of existing retail spaces, totaling 75,000 square feet and up to 14 different businesses. Under the financing plan, developers will repay the city of Sacramento some money being loaned up front that the city would turn around and use to help other hoped-for projects in the downtown core surrounding the new arena site. The total cost of the project is estimated to be from $35.5 million to about $47.7 million.

i15 Complex

i15, a mixed-use project of eight stories at 1431 I St.,

D&S Development is planning to construct the i15 complex at the corner of 15th & I streets, at the site of a former auto repair shop. The 80-unit building will include rooftop terrace with views of the downtown skyline and two floors of penthouse-style, multi-level units. The ground floor of the building is slated to include about 3,400 square feet of retail. The i15 project still in early stage.

K Street Developer Proposes Music Venue

D&S Development is proposing a 500 people music venue on the700 block and former site of the Men’s Wearhouse. This would be part of a mixed-use projects on the corridor long considered ground zero for the rebirth of downtown Sacramento.

According to the Sacramento Business Journal, “The multi-tiered concert space will sit on the corner of K and 7th streets, alongside local retailers and restaurants with a “Main Street” feel of second-story apartments inside K Street’s historic shops. That’s according to D&S Development, one of the partners negotiating with the city to remake the 700 block and enhance nightlife along the corridor.

The urban renewal can’t come soon enough for Sacramento, which will have invested more than $60 million in remaking two blocks of K Street if projects proposed there are built. While the city is looking to complete these deals, it also is examining the post-recession course for infill and redevelopment.

There has been $617 million invested in downtown over the past five years in 22 projects and all but five were to have been public-private partnerships. The K street projects on the 700 and 800 blocks also will be public-private partnerships that rely on subsidies.

After touring the buildings on the 700 block, D&S Development dropped the number of proposed apartments there from 136 to 125 and increased the retail space to about 60,000 square feet."

Maydestone Moving Forward

On Tuesday the City of Sacramento will approve a loan increase to the Redevelopment Agency to increase the loan from $4,570,000 to $6,100,000 for acquisition, construction, and permanent financing of the 32-unit historic Maydestone apartment building. This 4-story landmark building is located across the Memorial Auditorium at 15th and J Streets. The property has been vacant and boarded for more than six years due to a fire and needs substantial improvements.

Since Redevelopment Agency funding approval was obtained in April 2009, D & S Development, Inc. (Developer) has been working diligently to secure conventional bank financing to proceed with the renovation. Under the current restrictive lending environment, the Developer has been unable to obtain a construction or permanent loan from a conventional lender. The result is a loss of approximately $2 million in project financing. To fill this gap, the Developer is contributing an additional $100,000 of Owner Equity, costs savings of $370,000 have been identified, and the Developer is requesting an additional $1,530,000 in Agency funds. Staff is seeking approval for an additional $1,530,000 in Downtown Low/Moderate Housing Funds to augment the existing $4,570,000 Agency loan which will increase the loan to $6,100,000.

The $1.53 million of new Agency funds will consist of a $1.23 million nonforgivable loan and $300,000 to be forgivable pursuant to costs associated with ADA/accessibility upgrades including related off-site improvements due to public funding requirements. In consideration for the increased Agency loan, eight market rate units will now be restricted at 110% of Area Median Income for 55 years.

The 4-story apartment building built in 1915 has been vacant and boarded for over six years. The proposed project will convert 32 dilapidated units into 24 studio units, and 8 one-bedroom units affordable to households who earn between 60 -110% of the area median income. Amenities will include a renovated basement for primary use as community space with a community room, manager's office, exercise room, individual storage, and a laundry room.

The Developer must complete construction of the project by February 1, 2012.

D & S Development Promenade on K Street Proposal

This proposals modest in size and flash but doable as a project that brings everything downtown needs to get more activities in the area. The Promenade brings retail using the original historic fabric of existing K Street on the 700 block, adds additional sidewalk seating and bicycle parking, adding kiosks to partially separate the pedestrian and light rail tracks to bring the vitality of the retail out into the street.

In an effort to develop a retail atmosphere, the developer plans to remove the inefficient rear 66-feet of long narrow retail spaces at mid-block. The remaining, shallower, 94-foot deep retail spaces will be rent to specialty retail shops. Within the rear 66-foot space carved from the inefficient portion of the existing structures, garage accessed from the alley will be created with a new secured bicycle and motorcycle area and parking for 92 vehicle. Above the parking will be four levels of high-density housing with a portion of the retail structures in the center of the block to create a green roof. Most dwelling units will be between 480 and 1200 square-feet with a total of 136 housing units and 37,480 sq. ft. of retail space

K Street Projects Revealed

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Rubicon’s “The AuthentiCity” Proposal
Both details and rendering have emerged on several proposals put forth to develop both the 700 and 800 blocks of K Street with Sacramento’s Rubicon Partners showing the most ambitious proposal of them all. The Rubicon’s proposal includes building 400 mixed-income residential units and 150 luxury condos, 2,000-seat entertainment setting, grocery store, a 35,000-square-foot farmers’ market, 375-unit hotel and 125,000 square feet of retail spread over two blocks. The developer named this proposal “The AuthentiCity”. This has got to be boldest of the four proposals with a team that has experience doing projects including The Citizen Hotel as well as both 2110 L Street and 1801 L Street which are high-density mixed-use.

700-800 K Street, LLC
David S. Taylor Inc. has proposed a mixed retail-office development for the 700 block of K Street for about 50,000 square feet of retail and 57,000 square feet of office with the storefront façades retained. Taylor’s proposing 54 low- to moderate-income residential units by joining new construction to the existing Bel-Vue apartment building, and 66 market-rate units in a new four-level building with a rooftop courtyard garden. The team, which includes CIM Group, Domus Development and Zeiden Properties, is proposing a total of about 23,000 square feet of retail on the 800 block as well. This projects probably more doable than the Rubicon’s proposal judging by the rending but it’s a safe bet that having David Taylor take on this troubled area means it will get done. Their experience includes Sheraton Grand and 800 J Lofts here in Sacramento.

Mixed Use Development – 700 and 800 Blocks of K and L Streets
Bridge Housing Corp. of San Francisco along with Saca Development and Bagatelos Development, LLC has proposed building 360 “green” housing units, 33,000 sq. ft. of street facing retail, 48,000 sq. ft. of office space, and 34,000 sq. ft. of terraced open space and courtyards on all three development opportunity sites. Bridge Housing has lots of experience but none to speak of in Sacramento.

Promenade on K Street
Sacramento’s D&S Development competing for just one of the parcels and has a concept of 136 housing units in a four-story building known as “Promenade on K Street”. The proposal recommends removing the rear portion of the long narrow retail space to create 37,480 sq. ft. of more desirable retail space. The space created along the alley would become a four-story residential building over podium parking to provide for 136 new affordable housing units. The development team has received Letters of Intent from several retail and entertainment tenants. D&S Development experience includes Old Sac iLofts, Globe Mills, and the Historic Maydestone Apartments set to begin construction in Summer 2010. D&S Development has also lined up financing with Umpqua Bank and Wells Fargo Bank.

The teams will present their projects to a five-member panel Thursday the 25th which could lead to a recommendation to the City Council on a preferred choice by May. The winner could be awarded millions of dollars in redevelopment funds to bring its project to fruition.

More info about the proposals here