“Seventh & H” SRO Rising

The tower crane for this “Seventh & H" SRO project has been a nice reminder that some developments are still moving forward in downtown. For about a month now, this crane has been on site preparing the foundation for the eight story 102 foot tall building. At the corner of Seventh & H Street, crews are also laying tracks for the Green Line, a light-rail route that eventually will bring passengers from downtown Sacramento to Sacramento International Airport. They are welding 40-foot rails into 400-foot sections to make up the 1.1 mile span from downtown Sacramento to Richards Boulevard.

Drilling Piles at “Seventh & H” SRO

Foundation work began about a month ago on downtowns newest single-resident occupancy building at Seventh and H streets. Below I have captured the process of drilling steel-reinforced piles into the ground at a depth of 70 feet.

This $47.4 million project will house 150 units at a cost of $316,000 per unit. It was just the other day I saw the price tag per unit for the project at another news site and I was floored by this crazy number. Is this why so few units ever get built downtown without subsides? This price was expected during the last real estate boom of a few years ago, but this seems a little steep for a SRO. Were currently in a depressed real estate market but the cost to build in downtown does not reflect that. If it weren’t for both the state and city subsidies to give builders money to build downtown, not much would be built. What does that say about our market? This isn’t something new either; it’s been this way for over a decade and developers have adjusted their business pratices to reflect this. Now that our state and city are broke, will developers take a risk building downtown without government support?



Rendering of finshed building

Hotel Berry Overhaul

Today the Hotel Berry will have a ceremonial kick-off for long-overdue upgrades that actually began last December. According to Bob Shallit, next month workers begin updating 105 single-occupancy rooms, with a target completion date of next February. Initial work includes seismic retrofits, asbestos removal and some interior demolition.

The remodel will cost $24.8 million and will be paid for by local redevelopment financing, federal grants and a loan from U.S. Bank. Jamboree Housing Corp. acquired the 82-year-old building last year and intends to preserve the building's original exterior. That includes touching up a huge mural – promoting a one-time eatery called "Original Mac's – on the building's north side. Rents will run from $382 to $573 per month, depending on income level.

SRO Project Breaking Ground Soon

This $47 million projects planned for the northwest corner of 7th & H Street has now received all needed entitlements and necessary financing to move forward with construction this March. The project will be funded with $25 million in 9 percent Low Income Housing Tax Credits, $8,200,000 loan funded by Home Investment Partnership Program, a $6,859,695 capitol grant and $3,750,000 operating grant funded by Downtown Low Moderate Tax Increment Funds, and a land grant for the acquisition, construction and permanent financing of the 7th & H Project.

Developer and owner Mercy Housing California is a non-profit corporation dedicated to providing quality affordable housing with supportive programs to low-income persons in California. Together, Mercy Housing California and Rural California Housing Corporation have been responsible for the construction of more than 2,900 affordable single-family self-help homeownership units and 124 multifamily rental properties with a total of more than 7000 units. Their portfolio includes 18 properties in Sacramento County alone.

This 7th & H Street project will include 122 studios (325sf) and 28 one bed room (500sf) units as well as sixteen parking spaces, retail and health clinic on the ground floor. This eight story 102 foot tall building’s designed to replace other single room occupancy (SRO) units in downtown that are going to be replaced with other developments in the future.

Downtown Residential Hotel Report

Today the Sacramento Housing and Redevelopment Agency will submit a report (item 9) to the City Council on the required number of residential hotel units (712) located in downtown Sacramento.

Currently there are three single room occupancy (SRO) residential hotel projects in various stages of rehabilitation or financing approval: the YWCA (32 units), the Hotel Berry (104 units), and 7th & H SRO Project ( 150 units). The rehabilitation of the YWCA is nearing completion. The Hotel Berry project received an allocation of nine percent low income housing tax credits in September 2009 and an award of American Recovery and Reinvestment Act (ARRA) exchange funds in December 2009. Disposition of the Hotel Berry property to the nonprofit developer Jamboree Housing Corporation and commencement of construction is anticipated in summer 2010. The proposed 7th & H SRO Project which will create 150 new efficiency units is applying for nine percent low income housing tax credits in June 2010. The 7th & H SRO Project has been identified as the replacement site for the 19 units that were lost at the Wendell and will further the goals of the City's SRO Preservation and Replacement Policy adopted to encourage "no net loss" of SRO units in downtown Sacramento.

Several of the hotels surveyed are less than fully occupied due to deteriorating physical conditions and the challenging rental market. Currently, city staff are evaluating financing options for the renovation of the Ridgeway Hotel which requires substantive improvements. The Marshall Hotel owner is planning to convert the property to a market rate boutique hotel when market conditions improve. If the use does change, 95 existing residential hotel units could be withdrawn and replacement units would need to be identified.

7th & H Street SRO Proposal

Mercy Housing California of West Sacramento proposing affordable housing at the corner of 7th & H Street that will include 122 studios (325sf) and 28 one bed room (500sf) units as well as sixteen parking spaces, retail and health clinic on the ground floor. This eight story 102 foot tall building’s designed to replace other single room occupancy (SRO) units in downtown that are going to be replaced with other developments in the future.

There will be 3,900sf of retail space as well as 3,750sf health clinic, residential lobby, and a structured parking garage. 7th & H will also be designed to have a LEED-Silver standard and registered with the US Green Building Council. This project is the first mid-rise residential tower in the newly redefined Central Core District, and the first project to use the new Urban Design Guidelines. It located across the street from the County Jail and on an existing RT light rail line located along the north side of H Street, and a future RT line proposed on the east side of the 7th Street.

The project will require the Planning Commission approval of entitlements and to combine 5 existing parcels into one lot for the commercial condominium purposed. The Planning Commission is scheduled to hear this project on April 21st and then again on May 6, 2010 for Final action.