Investor Buys L Street Lofts

Nearly a year after developer Sotiris Kolokotronis mixed-use loft project at 18th and L streets failed to find a buyer in a foreclosure auction on the Sacramento courthouse steps, a southern California investor has paid $21.5 million for most of the L Street Lofts in midtown.  The project was originally built for $55 million and sold 22 of the 92-unit condominium before a suit was filed in 2009 to foreclose.  The now defunct La Jolla Bank, which made a $33 million loan to construct the L Street Lofts was shut down by federal regulators in 2010 and its assets were purchased last year by OneWest Bank.

Source: Sacramento Business Journal

$795K in Funding for 16th Street Greenscape

The Capitol Area Development Authority (CADA) has been awarded $795,000 in funding from the Strategic Growth Council Urban Greening Grant Program (Prop 84) for the 16th Street Greenscape Project.  CADA was one of the few agencies to receive funding over $75,000 and was one of 50 projects selected out of 260 applicant proposals.

The purpose of the 16th Street Greenscape Project is to:

 •Reduce storm water runoff from 16th Street and its sidewalks and reduce water pollution flowing to the Sacramento River

 •Significantly increase the amount of permeable landscaped space in the public right-of-way

 •Reduce air pollution and increase shade

 •Educate the public about the environmental benefits of sustainable streetscape design

 •Support and catalyze urban infill development

 •Improve pedestrian safety and walkability

 •Enhance the physical unity of the 16th Street project area

CADA’s Prop 84 funding award will help to complete the project designs, construct seven intersection bulb-outs, install 16 storm water retention units, and plant 28 street trees. 

CADA’s infill project developers are also participating in the construction of 4 intersection bulb-outs, curbs, gutters and sidewalks in conjunction with the publically-funded storm water retention units.

Maintenance will be carried out by the Midtown Property and Business Improvement District PBID, CADA’s project developers/owners, and the Friends of Fremont Park.  In addition to these partners, other key partners include the City of Sacramento Departments of Utilities and Transportation, the University of California, Davis Arboretum and landscape design students, 16th Street property and business owners, CADA tenants, and neighborhood residents.  Public access to all parts of the project will be unlimited and construction is expected to start in Spring 2013.

Source: http://www.cadanet.org/latest-news/cada-receives-795k-in-funding-for-16th-street-greenscape/

Capitol Towers Sold for $64 million

Beverly Hills-based real estate investment firm Kennedy Wilson has purchased Capitol Towers, completed in 1960, downtown Sacramento complex that includes a 409-unit apartment tower and low-rise garden apartments.

The Southern California company and its partners bought the property at 1500 Seventh St., for $64 million, with $50 million in financing from HFF/Freddie Mac at 3.51 percent, fixed for seven years.

A partnership controlled by the Bond Cos., a nationally known developer with offices in Los Angeles and Chicago, bought Capitol Towers in June 2007. Property records show the partnership borrowed $43 million on the parcel the same day it changed hands.

Capitol Towers has 203 units in its 15-story tower and 206 villa units surrounding the tower. The villa portion is zoned for up to 1,290 units, and the tower features six ground-floor retail outlets.

Source: Sacramento Bee

Fred Mayes Jewelers Clock Restored

Last week City of Sacramento restored the historic Fred Mayes Jewelers clock to its home at 10th and J streets. Time stood still for the mid-20th century clock for 15 years until repair work began last June. The clock was returned to the period of its historical significance. – the art deco style popular when it was designated as a City historic landmark in June of 1982.

The clock is likely more than 100 years old, although the first clear evidence is a 1924 photo of the clock in its original design in front of 1009 K St., its original location. The clock on K Street was located outside the Wiesen and Monk Jewelers until the business was moved to its current location at 10th and J in 1946. It stood outside the one-time Mayor Art Monk’s jewelry store. The jewelry store was purchased by Fred Mayes in 1963. Mayes donated the clock to the City of Sacramento in 1993. Mayes retired in 1998. The clock’s exterior is different than when it left for the foundry in June. As historical experts recommended, a stainless steel case be added to prevent vandalism and preserve the original parts.

Some of the parts of the refurbished clock are new and others original: The mechanical clock movement has been replaced with a modern electronic movement, which will not require winding. The clock will keep accurate time through GPS and will automatically correct itself after power outages or time changes. The imported Italian neon will highlight the art deco engagement style ring design topped off with an illuminated diamond solitaire.

Above info provided by the Downtown Sacramento Partnership

16th Street Streetscape Plan

Next Tuesday the 8^th, the City of Sacramento will move forward with plans to improve the streetscape and pedestrian friendliness of 16th Street, the City has evaluated a conceptual plan provided by Capitol Area Development Authority (CADA) and then developed 30% design plans as well as completed environmental review for streetscape improvements on 16th Street from “S” Street to the Capitol Avenue/ “N” Street alley.

The 30% plans show the preliminary design of new streetscape enhancements along the corridor: including new streetlights, curb extensions, landscaping, and traffic signal upgrades. Funding for the projects being provided by CADA in the amount of $160,000. Sacramento Granicus 

Record High Office Vacancy

As reported by the SacBee, The Sacramento region office vacancy rate increased in this year's first quarter to an all-time high of 23.74 percent, according to commercial real estate brokerage firm Cornish & Carey Commercial Newmark Knight Frank.

The rate increased 0.36 percent from the previous quarter, reflecting 366,000 square feet of additional vacant space in the region's 22 office submarkets. This is nearly equivalent to the size of "The Emerald Tower" being almost completely empty at 300 Capitol Mall which is an 18-story office tower and 383,238 square feet.

In all, vacant office space in the region totals nearly 16 million square feet. This is not the economic recovery we have been told was right around the corner. 

10 Percent Cut for New Sacramento Courthouse

The Judicial Council has endorsed a cost-cutting direction for court construction statewide, including the reassessment of 13 projects and further construction budget trimming on 24 projects. The council approved recommendations from the Court Facilities Working Group that are expected to yield significant, long-term savings throughout the $5 billion program.

The New Sacramento Criminal Courthouse must reduce hard construction costs by a minimum of 10 percent. Currently the proposed courthouse for Sacramento is estimated to cost $437,516,000 million. A 10 percent cut will reduce costs by $43,751,600 million. One recommendation made by the Judicial Council is that Sacramento reduces number of courtrooms from 44 to 42 to reflect reduction of 2 new judgeships, pending fall 2012 Judicial Council action to adopt update to new judgeship requirements, in addition to 10% reduction. The new courthouse budget would now be $393,764,400 million with a target to achieve low-cost construction methodologies.

Senate Bill 1407 was enacted in 2008 to authorize up to $5 billion in funding for new and renovated courthouses using court fees, penalties, and assessments rather than taxpayer revenues from the state’s General Fund. Since 2009, more than $1.1 billion in funding originally designated for courthouse construction has been borrowed, swept to the state’s General Fund, or redirected to court operations.

 

http://www.courts.ca.gov/documents/jc-20120424-itemD.pdf

http://www.courts.ca.gov/documents/oc12-Apr_24.pdf

Railroad Track Relocation

Sacramento railroad track relocation project (click to enlarge)

This project is relocating and realign about 2.3 miles of Union Pacific railroad track to make room for an expanded Sacramento Valley Station, which will be turned into an intermodal hub that will handle Amtrak and Capitol Corridor service as well as light rail and bus services. The cost to relocate the track is $45 million and paid for by both The Department of Transportation that won $20 million in federal stimulus money and more than $25 million in state Proposition 1B money.

The track relocation project began in April of last year is estimated to be completed in December 2012.

Wells Fargo Center 20th Anniversary

Wells Fargo Center under construction in 1991

Today is the 20^th anniversary of the Grand Opening for the Wells Fargo Center on Capitol Mall. As Sacramento’s tallest building at 423 ft, it has a distinctive curved copper roof caps the building, with a cleft in its middle as a postmodern architectural style. Inside the building there is a five-story clear glass atrium with granite and marble walls with a Wells Fargo history museum is located in the lobby and Il Fornaio Restaurant.

Wells Fargo Center under construction in 1991

The architect Hellmuth, Obata and Kassenbaum (HOK) designed the tower which also won the BOMA Building of the Year Award for 1994. This 502,000 sf. building occupies an entire 2.3 acre city block with a masonry & granite exterior. There are a total of 33 floors (30 on ground, 3 below), 13 elevators count and an adjoining 6-story parking garage.

Wells Fargo Center under construction in 1991

The tower was originally constructed for $120 million in 1992 and sold in 2000 for $130 million. The building was later resold again to to Hines’ Core Fund in 2007 for $237,250,000 million.

Wells Fargo Center 2008

Wells Fargo Center, 400 Capitol Mall, Sacramento, CA 95814, California, USA.

Cost Reductions Urged for New Sacramento County Courthouse

The Judicial Council working group overseeing the judicial branch’s facilities program is recommending that 13 planned courthouse projects be reassessed with the goal of significantly lowering their costs. Options to be considered in these projects may include significantly reducing square footage, undertaking renovations instead of new construction, evaluating lease options, and using lower-cost construction methods where feasible.

The Sacramento Courthouse is recommended to "Reduce Costs Now" by the Judicial Council. The current proposal includes: 44 courtroom, 405,500 sf., and an estimated total cost: $437,516,000. Expected completion: 1Q 2015

The committee will also recommend to the Judicial Council that the remaining 25 active projects funded under Senate Bill 1407 continue as planned, but undergo other cost reductions as they proceed. See the list of recommendations here.

The working group’s recommendations are expected to be considered by the Judicial Council at its April 24, 2012, meeting. The council can accept, modify, or reject the recommendations, which will be posted on the California Courts website.

http://www.courts.ca.gov/facilities-sacramento.htm

Arena Effort Dead

Yesterday Mayor Kevin Johnson admitted “Is the deal as we know it dead? Absolutely.”  According to the Sacramento Press, The breaking point for Johnson, he said, was the Maloofs’ refusal to put up collateral for the city’s refinance of their loan. I personally can’t believe this was not in the agreed upon in the March 1st framework… but apparently it wasn’t. In addition, the Maloof’s also refused to pay $3.26 million in pre-development costs for a building they would not own. This doesn’t sound all that odd to me. Why as a renter of a new building (Maloof’s) would they also pay for the pre-development costs? Those costs are traditionally picked up by the owners which in this case would be the city.

This is all a sad state of affairs. If the Kings go, don’t think the city will just pick-up an expansion team to fill the void. … that would be an additional cost of $100 to $300 million payed to the NBA and its owners.

Sutter Medical Center Expansion

Anderson Lucchetti Women’s and Children’s Center

Construction crews continue work on the spanning structure over L Street, which is scheduled to be completed this summer. The next step is connecting the steel of the spanning structure with Sutter General Hospital on the second, third and fourth floors and completing the exterior. The spanning structure includes two walkways on the second floor – with one for patients and staff, and another for family and the public – clinical space on the third floor with a connection to the operating rooms in Sutter General, and staff lockers and mechanical rooms on the fourth floor.

Anderson Lucchetti Women’s and Children’s Center

The look of the Women’s and Children’s Center is being completed as metal panels are currently being installed. This will include copper panels similar to the look of Capitol Pavilion on the first floor.

Anderson Lucchetti Women’s and Children’s Center

Anderson Lucchetti Women’s and Children’s Center walkways

After the spanning structure is completed, the construction team will work on two other bridges that will connect the entire campus: one over 28th Street connecting the Sutter Cancer Center/Buhler Building to Sutter Capitol Pavilion, and an open-air bridge connecting the south parking lot on 29th Street to the Anderson Lucchetti Women’s and Children’s Center.

Anderson Lucchetti Women’s and Children’s Center

Anderson Lucchetti Women’s and Children’s Center

153.5 ft tall structure
$600 million project
To be completed in late 2012 Sutter Medical Center, Sacramento campus expansion will be completed in 2013. http://www.sutterdistrict.org/

626 I Street Rehabilitation Project

626 I Street Rehabilitation Project

This project will be completed in September 2012; it will consist of 108 units for extremely low income elderly persons. Rehab cost $19.4 million.

626 I Street before rehab March 2010

SHRA Report

La Valentina Station Construction

Corner of 12th and D
David Baker + Partners Architects
$27 million project
81 units of affordable housing
Scheduled to be completed in summer 2012. One of the first near-zero-energy projects in the Sacramento area.

7th & H SRO Construction

7th & H SRO Construction

Eight story 102 foot tall building
$47 million project
Developer and owner Mercy Housing California
122 studios (325sf) and 28 one bed room (500sf) units
Sixteen parking spaces, retail and health clinic on the ground floor. Construction is expected to be complete in October 2012

7th & H SRO Construction

7th & H SRO Construction

7th & H SRO Construction

East End Gateway Construction

East End Gateway 2

The contractor will be installing three levels of concrete blocks on top of the footings for East End Gateway 2.  They will also be installing steel reinforcement bar, underslab electrical conduit and plumbing and pouring the concrete slab.

In addition, the contractor will be laying-out and digging the footings that will form the perimeter of the slab for East End Gateway 3. Once the contractor digs out the footings, they will be installing steel reinforcement bar and sleeves to accommodate electrical and plumbing, pouring the concrete footings and installing the first three levels of concrete blocks on top of the footings.

Estimated Development Costs: $25,838,000.  84 market rate one and two bedroom apartment units, ground floor retail/commercial space and 93 parking spaces. Location: SW and NW corner of 16th and O Streets. Developer: Ravel Rasmussen Properties and Separovich/Domich Real Estate; Architect: Stantec Architecture

CADA Latest News

East End Gateway 2

East End Gateway 3

East End Gateway 2 & 3 foundation work

East End Gateway 2 & 3 rendering

Sustainable Regional Growth Plans

In November, the Sacramento Area Council of Governments released its long awaited draft Sustainable Communities Strategy (SCS) -- a plan for guiding regional growth intended to reduce the region's greenhouse gas emissions while accommodating nearly 900,000 more residents by 2035. SACOG's SCS is one of four such plans being drafted by the state's largest metro regions in order to company with Senate Bill 375, the 2008 law that seeks to reduce greenhouse gas emissions through the promotion of more compact development and alternative transportation methods. While SCS's in other regions have drawn criticism, the California Planning & Development Report reports that SACOG's SCS has been widely praised for preserving farmland and encouraging greater density in urban centers. The SCS is expected to be adopted by SACOG's board in April.

Please read more about SCS Blueprint Plan here: Sacramento Region SCS Builds on Tradition of Blueprint Planning  & SB 375 Is Now Law -- But What Will It Do?

SactoMoFo 4! Saturday, April 21st 11am - 6pm

Check out http://www.facebook.com/SactoMoFo for more info!!

Arena Debacle?

It looks as if U.S. Rep. Doris Matsui might derail the proposed new arena in the railyards shortly after Sacramento Mayor Johnson declared that the city is "on the verge of doing something very special." Her statement was made on where the proposed arena is planned and where  the intermodal transportation center (ITC) was also originally supposed to be built.  

In a SacBee Editorial: Don't build a big barrier inrailyard, Matsui draws attention to how the current arena plan might not work. Before the arena plans came to be, for ten years ITC was in the planning stages with both renderings and site plans released in the last two years. This current arena effort would toss out all those dollars spent and years planning the ITC.  After reading the article, Matsui draws concern by emphasizing that the aim should be to create a well-integrated center of architectural and functional significance that has a strong sense of place. I heard that statement to infer that the new arena would greatly reduce the functionality of the transportation center using the current plans, thus putting Federal Funds in jeopardy to fund the ITC.

The article also refers to the Rose Center of the Urban Land Institute suggestion to place a public plaza in the corridor from the depot to the Central Shops with the arena as far west as possible on the site and transportation facilities as far east as possible. The editorial brings up some good points and the comments are informing.

City Council agrees to Arena Financing Plan

In a 7-2 vote, the council approved a nonbinding "term sheet" with the Sacramento Kings, AEG and the development firm slated to build the project. By approving the plan, the council has set into motion a series of critical votes in the coming months. Those votes must occur under a tight timeline, as the city works toward breaking ground on the arena by next summer to open the facility for the 2015-16 NBA season.

Now the Kings and AEG will begin work on a memorandum of understanding on revenue sharing and arena expenses. That agreement is scheduled to be completed by April 15. In addition, the city has looked at leasing parking assets to a private firm in exchange for an upfront payment that would go toward the arena. In recent weeks, city officials have floated another idea: to create a municipal finance authority that would allow the city to maintain control of its parking operations. Under that plan, the city would issue bonds to fund the arena project and pay that debt back through parking revenue

Last night’s vote by the council also approved the spending of $850,000from the city's parking fund to hire a team of consultants to help in the pre-development process.