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.

Alhambra Blvd. Housing

Mixed-use project at 324 Alhambra Blvd. Sacramento, CA

A mixed-use proposal has been submitted to the city along Alhambra Blvd. to build a six -story, 302 housing units with 344 parking spaces. The estimated construction costs for this proposal at 324 Alhambra Blvd. is estimated to be $71 million and it’s unknown when the project might start. Before construction begins, it looks as if all the current structures will be demolished except one home on C Street.

Mixed-use project at 324 Alhambra Blvd. Sacramento, CA

Metro Place - Proposal From Times Past

Metro Place was proposed at 9th & J Streets

Metro Place was proposed in 1999/2000
32-story office/apartment
$127 million in construction costs
114 apartments on the top 10 stories
262,000 square feet of offices
20,562 square feet of retail on the ground floor
1,044 parking spaces. The whole building would be more than 850,000 square feet.
Would have received a $11 million subsidy from the City of Sacramento plus the city's quarter block of land valued at $4.8 million. The whole city package came to $16.7 million. The project never received funding because at this time around the nation office markets were in the doldrums and demand was sluggish. 

Early rendering of Metro Place proposal without curved version

Early rendering of Metro Place proposal without curved version

Early rendering of Metro Place proposal without curved version

Early rendering of Metro Place proposal without curved version

Early rendering of Metro Place proposal without curved version

Early rendering of Metro Place proposal without curved version

Early rendering of Metro Place proposal without curved version

Here's a link at the Biz Journal as to why is was not feasible...

Friday, April 26, 2002
Metro no place
A downtown Sacramento skyscraper with offices and apartments would have replaced a vacant lot -- if lenders hadn't been spooked

Dean Ingemanson's plan for a 32-story office/apartment building at the Metro Place site on 9th and J streets is defunct because it cannot secure financing in today's weak office market.

Shifting to a more feasible project, Ingemanson has signed a tentative agreement with a Southern California developer, CIM Group Inc., to build an apartment building of about five stories on the site.

Yet Ingemanson and others agree that if the hybrid tower had been built, it almost surely would have been commercially successful.

"The bottom line," Ingemanson said, "is that if I was able with a magic wand to get it built, it would have succeeded because of the low vacancy of class-A office space downtown and demand for downtown apartments."

On top of that, it would have been a stunning coup for the redevelopment officials who staunchly supported Ingemanson's dream of a mix of high-rise apartments with offices and ground-floor retail in downtown Sacramento. And it would have permanently removed one of the worst eyesores in the downtown area, a half-block long hole in the ground, walled off with a cheap plywood fence.

"I thought it was a great urban design project," said Andrew Plescia, the city's economic development director and a strong supporter. "It would have brought a lot of vitality and livability to downtown."

So what happened to this dandy redevelopment project that might have been a resounding commercial success?

The simple answer is that lenders wouldn't touch the $127 million venture. They were spooked by the national economic downturn, combined with a rising office vacancy nationally, especially in the Bay Area. It didn't matter that Sacramento itself is one of the nation's strongest office markets.

No magic wand, no money: Ingemanson's proposal called for a 32-story building to include 114 apartments on the top 10 stories, as well as about 262,000 square feet of offices and 20,562 square feet of retail on the ground floor, plus 1,044 parking spaces. The whole building would be more than 850,000 square feet -- almost as big as the nearby Downtown Plaza mall.

Metro Place would be built on the half block on the south side of J Street between 8th and 9th streets. Ingemanson controlled the western quarter block, while the city owns the eastern quarter.

In early 1999, Ingemanson purchased most of his portion out of bankruptcy court. He then proposed a partnership with the city to build the tower, and the city agreed to chip in an $11 million subsidy, plus the city's quarter block of land, valued at $4.8 million. The whole city package came to $16.7 million.

For redevelopment officials it was a dream come true. Metro Place, two blocks from City Hall, would have replaced a decade-old blight and replaced it with office workers who would shop downtown during the day and residents who would shop downtown after hours.

"It was a huge, wonderful step forward for the housing market downtown," said John Dangberg, executive director of the Capitol Area Development Authority and former redevelopment director for the Sacramento Housing and Redevelopment Agency.

Renters were clearly very interested in the upper-story apartments. Despite high rents, the units would surely have leased, said Dangberg and others.

Office pundits agree that the office portion would eventually have paid off. Downtown Sacramento's office vacancy is 5 percent -- among the lowest in the nation.

Wrong time: But Ingemanson, looking for a loan of $70 million, showed up at the lenders' doors at the wrong time.

"The financial market is chasing stabilized, completed projects, and development projects are seen as higher risks," said Kevin Randles, a mortgage banker with the local office of L.J. Melody & Co., a Houston-based lender and subsidiary of CB Richard Ellis.

Around the nation, the office market is in the doldrums. Demand is sluggish and vacancies are up as a result of corporate America's slowdown during the past year. The Bay Area especially has seen horrendous vacancies and rental decreases as a result of high-tech's hard times.

Sacramento, less than 90 miles from the bay, is guilty by geographical association.

"Sacramento is the only big office market in the United State with single-digit vacancy rates," Randles said. "But we're seen as a sister city to the Bay Area, which is having a lot of trouble."

More here... http://www.bizjournals.com/sacrament...29/focus1.html

10th & J Streets Housing Proposal

The TA Development Group has submitted plans to build an eight-story building that would have 256 apartments. Plans include demolishing a couple of empty buildings at 10^th & J Street once the plan is approved by the city. It will have a swimming pool on the top floor and construction could begin in the next 12 to 16 months. The developer is also working on a plan for the Goodyear site at 11^th & I Streets that would include 204 apartments and hope work begins there in Spring of 2024. 

The "Cypress" at 14th & N Streets

Back in October of last year the CADA site at 14^th & N Streets broke ground. The Cypress will be eight-stories with 98 residential units facing Capitol Park. Total costs are estimated at $49 million and expected to be completed in late 2024. Once completed, this will be a nice addition to the neighborhood.

The "Cypress" foundation being dug

The "Cypress" foundation being dug

The "Cypress" construction site looking west on N Street

The "Cypress" rendering at 14th & N Streets

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

The Gateway at Q

At the corner of 21^st and Q Streets across from the vacant Sacramento Bee headquarters, a six story mixed-use building has been approved for construction. The projects a 290,000 square foot building witg 246 residential units and 68 feet tall. No timeline for construction has been given or cost to build.

905 S Street Mixed Use Proposal

Another good looking proposal is in the works on S Street. This would be a seven story residential building with 225 rental units and 6,409 sf of commercial use and expected to cost about $55 million. Construction expected to begin next year.

Eight-Story Housing Proposal

With only three new tires stores left in the downtown Sacramento grid, it appears the Goodyear at 1121 I Street will be replaced with an eight-story mixed-use building. After demolition of the tire shop, the new building with 204 apartments would be 85 feet tall and 223,820 square feet. For more information visit the https://sacramento.agencycounter.com website. No cost or timeframe has been given for this proposal.

1508 S Street Mixed-Use - 15S

15S seven-story mixed-use at 15 & S Streets

A new seven-story, mixed-use project is rising at 15th & S Street. After the demolition of six existing structures, the new building will have 12,800sf of ground floor commercial and 137 housing units, 69 parking space with a mechanized lift.

15S seven-story mixed-use at 15 & S Streets

15S seven-story mixed-use at 15 & S Streets

16th & V Mixed Use Building

This five-story proposal at 2131 16th Street would encompass 57,950 square feet with 60 multi-unit dwellings and 4,634 square feet of commercial space. A design review is currently in progress, no development cost or time for ground breaking has been given.This location is an entry point to the central city just two blocks off the freeway when you exit off Hwy. 50 and has been empty plot of land for many decades. 

2131 16th Street mixed-use proposal

2131 16th Street mixed-use proposal

J Street Seven-Story Residential Proposal

The site is located along the north side of J st spanning the full block between 17th and 16th St.  The proposed project at 1617 J Street is a new construction of a 7-story building with basement.  The basement will contain a parking garage, level 1 will be retail space, level 2 will contain a parking garage, and levels 3 through 7 will house approximately 200 apartments.  The total retail space on level is 39,904sf.  The structured parking within the basement and level 2 will provide 253 total stalls,  90 feet tall and total building square footage 347,063. The current building a the site (restaurant) was built in 1920 and is proposed for demolition. No construction costs or date has been provided. Documents submitted to Planning Dept. can be found at https://sacramento.agencycounter.com/

1617 J Street seven-story residential proposal

55 Years of History at 301 Capitol Mall

The lengthy history of 301 Capitol Mall can be exhausting, but as of last Friday, CalPERS will now sell the property and cancel the proposed 33-story mixed-use high-rise. For the last 16 years, CalPERS has spent nearly $70 million buying and maintaining the property, and now after three failed attempts to build at the site, it will be sold. The city block now resembles a wildlife refuge where raccoons and other habitat are thriving.

55 years of history at 301 Capitol Mall

The block was once the headquarters for the Sacramento Union newspaper, in 1967 the paper purchased the Capitol Mall address and built the publications headquarters. By 1994 the Union printed its last paper and went out of business. In 2005 the Towers of Capitol Mall were approved for construction at the site and demolition was done in preparation for two 53-story high-rises. By 2007, the developer was struggling to finance the project and plans were scrapped. CalPERS bought into the project in hopes of saving the proposal, but market forces stopped further work at the site killing the proposal.

In 2016 CalPERS teamed up with CIM Group and proposed a 30-story mixed-use building, the odd stacking of the tower was not accepted well by the public and later canceled. By late 2019 another proposal was offered that was as CalPERS teamed up with the development form Hines. This proposal was to be Sacramento’s tallest if built at 33-stories and 557 feet tall. It was seen as a better design, but as 2020 took hold and the pandemic pushed people to do more work from home, it became apparent there was no interest in more office space downtown. Currently, the Sacramento office market is in its eight straight quarter occupancy losses, millions of square feet are available and it might take many years to lease them back up to pre-pandemic levels.

Land Park and Broadway Proposal

Broadway perspective - looking south. 2500 16th Street

The former Tower Records store location on Broadway is currently under consideration to have a five-story mixed use development built there. The project includes 10,510 sf of commercial area and 68 dwelling units. Documents submitted to Planning Dept. can be found at AgencyCounter.

Broadway perspective - looking southwest. 2500 16th Street

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

ENVOY Anthem Cathedral Square Construction

ENVOY at 1030 J Street in Downtown Sacramento

A tower crane rises over the 11^th & J Street ENVOY construction site as the seven story building fills a corner that has been an eyesore for decades. After several proposals have come and gone, this project looks to be built with quality materials and should bring a lot of people into the area to live. There will be 153 rentals apartments above the retail on the ground floor. This stretch of J Street is in awful shape, hopefully when this is completed others in the private sector and the city government will push out the undesirables who bring down the area.  https://www.hrgarchitects.com/cathedral-square-mixeduse-apartment

ENVOY at 1030 J Street in Downtown Sacramento

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.

CADA Site 21 - 1330 N Street

It was only three years ago CADA put forth a taller nine story proposal at this location with 92 condos and I thought this was something Sacramento could support. This new proposal for the same location will have 17 condos and 75 apartments with retail space on the ground floor. This revision is proposed by HRGA Architecture and designed by Kohn Pedersen Fox and still needs planning permits approved by the city. It appears the materials used for the exterior of the building are a lower quality than the original proposal. 

Anthem Cathedral Square @ 1030 J St.,

Anthem Cathedral Square - 1030 J Street, Sacramento 

Construction of a seven-story apartment building with 153 units, about 10,000 square feet of first-floor retail and a 103-stall parking lot. Amenities will include a fitness center, rooftop deck, lounge and central courtyard. A handful of empty two-story buildings on the site have been demolished. This site was once where Cathedral Square, a 26 story condo was proposed in 2004.

Location: 1030 J St., on the southwest corner of 11th and J streets

Cost: Canada-based Anthem bought the property for $5 million in 2018. Construction costs not disclosed.

Status: Anthem filed plans with the city last October. Pending a review shortly by the planning commission, demolition could take place this summer, with vertical construction starting in the fall.

Anthem Cathedral Square - 1030 J Street, Sacramento 

Anthem Cathedral Square - 1030 J Street, Sacramento 

Anthem Cathedral Square Rendering - 1030 J Street, Sacramento 

Hotel Planned for 9th & L Streets

Proposed Canopy hotel rendering submitted to City Planners 

A formal design review has been submitted to city planners for a proposed 14-story hotel at the corner of 9^th & L Streets. As reported by the Sacramento Business Journal, the project would cost about $150 million, 275 hotel rooms with 50 luxury apartments on the top floors; have a roof top bar and ground floor retail. The Canopy by Hilton at 831 L Street will have a total of 280,000 SF.

Original rendering released two weeks ago of proposed Canopy Hotel

Read more here, here, here, & here.