John E. Moss Federal Building Meets Historic Listing Criteria

John E. Moss Federal Building built in 1961 at 650 Capitol Mall

A report from the General Services Administration (GSA) dated August 2018, determined that the John E. Moss Federal Building— located at 650 Capitol Mall in Sacramento — “meets National Register of Historic Places Criterion A and C, when evaluated within a local, state, and national context.”

http://sacmod.org/gsa-john-e-moss-federal-building-meets-historic-listing-criteria/

     John E. Moss Federal Building built in 1961 at 650 Capitol Mall

550-Foot-Tall Tower Proposal

CalPERS & CIM Group latest proposed drawing
 for 301 Capitol Mall

The internet is already getting worked up into a frenzy about this new proposal for the former Towers site at 301 Capitol Mall. The SacBee’s reporting that this project would have 100 apartment and 737,000 square feet of office space in addition to some retail and an elevated public park. CalPERS has said they will commit $550 million to build a mixed-use tower along with CIM Group.

CalPERS & CIM Group latest proposed drawing for 301 Capitol Mall

If you read the Sacramento Bee article, they say in the second paragraph to not expect any new construction cranes coming soon because the developer still needs to find enough tenants to lease (at least 50%) the tower before starting construction. In addition, no timeline has been mentioned for construction, so there is still no certainty this will actually be built. Unlike the 2016 proposal, CalPERS has committed a financial investment to move this process forward, so that is a positive.

I do prefer this proposal to the previous one in 2016, but it seems to be lacking something. The absence of other materials other than blue glass is underwhelming.

15Q Reaches 3rd Floor

D&S Development mixed use project at the corner of Q & 15th Street has completed it's third floor.

Birds eye view of 15Q project - 1430 Q Street, Sacramento, CA

Birds eye view of 15Q project - 1430 Q Street, Sacramento, CA

15Q project - 1430 Q Street, Sacramento, CA

15Q project - 1430 Q Street, Sacramento, CA

15Q project - 1430 Q Street, Sacramento, CA

19J Reaches 7th Floor

At a pace of one floor per month, 19J has reached the 7th floor. At this speed it should be topped out by November. It's good to see this is moving right along.

19J is a 11-story mixed use project on J Street in Midtown Sacramento

19J is a 11-story mixed use project on
 J Street in Midtown Sacramento

19J is a 11-story mixed use project on J Street in Midtown Sacramento

19J is a 11-story mixed use project on J Street in Midtown Sacramento

19J is a 11-story mixed use project on J Street in Midtown Sacramento

19J is a 11-story mixed use project on J Street in Midtown Sacramento

Prep Work Begins For P Street High-Rise

Activity was see on the corner of 8^th and O Street with backhoes digging on 8^th Street and what appears to be four different window samples. This might really get going by Fall of this year. DGS Project Description 

Prep work at the corner of O & 8th Street for the P Street building

Prep work at the corner of O & 8th Street for the P Street building

Possible window sample on display at corner of O & 8th Street for P Street Bldg.

Possible window sample on display at corner of O & 8th Street for P Street Bldg.

The 140 year old Heilbron House at the corner of O & 7th Street will
 be restored and not moved from it's current location

The 140 year old Heilbron House at the corner of O & 7th Street will
 be restored and not moved from it's current location

O Street Office Building

It did not take long for the California Department of Food & Agriculture (CDFA) Annex building to be demolished. The new building will at 1215 O Street,  360,000 sf, 11-stories and have a capacity of 1,150 employees.

1215 O Street demolition of the former CDFA south facade

1215 O Street demolition of the former CDFA south facade

1215 O Street demolition of the former CDFA south facade

The former building at 7th & O Street 

10th & J Street Proposal Progress?

Over 10+ years ago this corner was getting primed for development, John Saca went through all the planning process and paid for both the entitlements and EIR. Shortly after getting the green light to build the economy started to fall into a recession. Today Sotiris Kolokotronis and Saca Development have come together to develop the land.

Their proposal is still in the early stages but the vision is a 200 room hotel and 250 apartments. With entitlements still in place for the previous project, getting approval from the Planning & Design Committee and financing might be their biggest hurdles. The Sacbee’s reported that last year Saca asked the city for some assistance, so having Kolokotronis join as a partner might give the proposal assistance the city won’t be providing.

The original Metropolitan proposal had 320 condos and 190 hotel rooms with 13,000 sf ground floor retail. With fewer apartments and ten more hotel rooms, my early guess is it might reach 300’. But we won’t know anything till the end of the year when the developers submit their plans to the city. City Council member Steve Hansen is “Cautiously optimistic” that work could begin at this location, and I totally agree. There are a lot of factors that need to come together before this project can succeed, so we better wait till next year before getting to excited.

New Courthouse Gets Funds to Build

With the passage of the 2018-19 California State Budget yesterday, Sacramento will get a new 18-story glass-walled courthouse on the edge of the railyard site. After 9 years of delays and reducing both its size budget, the $490 million, 53 courtroom project is scheduled to begin construction in the summer of 2019 and competed in 2022.

New Sacramento County Courthouse on H Street between 5th & 6th Streets

Originally, the courthouse was to be funded by the 2008 bond SB1407, a $5 billion fund to rebuild courthouses around the state. The bond fell short by $1.4 billion by a combination of declining revenue from court fines and fees. In addition, Governor Brown diverted funds in 2012 from the courthouse bond to backfill the state’s budget and those funds have never been returned.

Project Description:

538,000 sf
18-stories
270 feet tall
Lot 41 in the Railyards
53 courtrooms
71 basement parking spaces

Addendum Part 1
Overview New Sacramento Criminal Courthouse

New Sacramento County Courthouse on H Street between 5th & 6th Streets

Imperial Tower Renovation

The Imperial Tower, formerly known as the Wong Center is a 12-story mixed-use office/residential building consisting of 187 residential units and 10 commercial spaces. Built in 1973, this 45 year old building will receive $35 million in rehabilitation and development. Interior unit improvements will include new cabinets, counter-tops, flooring, energy efficient appliances, kitchen sinks, window blinds, heating, toilets, lighting and paint in kitchens and bathrooms.

Ten units will be brought into compliance with Americans with Disability Act (ADA) requirements and applicable state accessibility standards. Common area improvements will include new flooring, handrails in hallways, hallway lighting and elevator cab upgrades. Exterior improvements will include new roofing, concrete repairs, paint and site signage. Additional improvements may be completed if there are cost savings and/or remaining construction contingency.

The property is located at 331 J Street in Downtown Sacramento, no date has been given for when the job will begin. City Council Report

Proposal Gets Shelved

A model for a 2007 proposal by Fulcrum Properties to develop a 28-story
tower and complex on the West Sacramento river front.

It’s always sad when big proposals get shelved. In 2007, a proposal from Fulcrum Properties was to develop a 28-story tower and complex for the state on the West Sacramento river front. Back then, the idea was that the state (Dept. of Natural Resources) could lease the space for 10 or 25 years eventually purchasing the structure. The rational was the state could spend far less up front, and the costs of maintaining the building would fall on the private sector owner. Once the real estate market collapsed, the state back away from this proposal without compensating the developer for time and money spent on the proposal.

20-story state office building to house the Dept. of Natural Resources
at 7th & P Streets. To be completed in 2012.

Today, the Dept. of Natural Resources will be moving into a new office tower at 7^th & P Street that’s expected to break ground sometime this year and competed in 2021.

The Bridge District in West Sacramento 2006 vision

Source for history of Fulcrum proposal: Sactown Magazine 

Colliers 1Q 2018 Sacramento Office Research & Forecast

The Sacramento office market has improved to pre-recession levels and according to Colliers, the Sacramento office market is now seen as a safe haven for investors. Rental rates increased 2.7 percent over last year with Class A downtown reaching $3.00 per square foot.

Colliers 2018 1Q Sacramento market indicators

Big investment sales. According to a national office market study published in February by investment auction platform Ten-X listed Sacramento as one of the top five “buys markets” in the U.S. Colliers believes this is true because demand is resilient and the construction pipeline is sparse. The sale of David Taylors 621 Capitol Mall high-rise tower for $161 million set a new standard for Class A per square foot at $439.49.

Colliers 2018 1Q Sacramento summary of statistics

Even with all the positive news, Colliers does not see development in large scale (private high-rise construction downtown) returning to the Sacramento market in the near future. Office rates still do not justify the cost of new construction, hence no new speculative office projects in the first quarter of 2018. Until rents and values rise nearer or replacement costs, we will likely see development in the region to focus on government and healthcare build-to-suit, with any speculative capitol going toward rejuvenating existing spaces or building apartments and warehouses. 
Colliers 2018 1Q Sacramento Office Report

CADA Site 21

CADA – Site 21, 93 units, height 115 ft  (New Mixed-Use Building)
1522 14th Street, Sacramento, CA

CADA Site 21 proposal goes to the Planning & Design Commission today. This is a fine project and one Sacramento can support. 10 years ago Sacramento could only support residential as high as 5 floors and now were up to 9. Anyone who expects the city to leap into the high rise living better take a step back. We should be lucky this is going up, an apartment building over 50 years old will be demolished and the local preservationist could not find a way to make it an historic structure.

CADA – Site 21, 93 units, height 115 ft (New Mixed-Use Building) 

1522 14th Street, Sacramento, CA

$520MM Tower To Rise

The $520 million headquarters building for the Dept. of Natural Resources is expected to break ground this fall. At 20-storys and 838,000 square feet, this tower will be the largest office building built downtown since CalPERS build their headquarters on Q Street in 2006.

20-story, $520 million CA Dept. of Natural Resource's Headquarters

The tower will feature 10,000 square feet of retail and public space, and auditorium with 300 seats, food court and pedestrian plaza. Improvements will also be made to the historic Heibron House. Completion is scheduled for 2021.


The Registry Bay Area Real estate

15Q

15Q is now out of the ground.

15Q construction - 73 units, mixed use

15Q construction - 73 units, mixed use

15Q construction - 73 units, mixed use

15Q construction - 73 units, mixed use

19J

What’s the hold up here? Two floors in 4 months? Well, it could be they needed money… there is now signage on the chain-link fence saying “Construction financed by Bank of the West”. Footing for the tower crane is now installed on 19^th street.

19J development will feature 175 residential units

19J development will feature 175 residential units

19J development will feature 175 residential units

 

17th & S Street Mixed-Use Building

This Thursday the 11th, the Sacramento Planning and Design Commission will conduct a public hearing and approve this 6 story, 159 unit residential mixed-use project. This CFY Development Inc. and the Capitol Area Development Authority project is ready to go and construction could begin as soon a Spring 2018.  About 12 years ago another proposal closely resembling this one was also proposed for this site, but it did not get out of the gates early enough before the market went south.
P17-030 17th & S Street Mixed Use Building

2017 Year-end Snapshot: Sacramento Office

Colliers International released a report last week showing declining vacancy, modest rent growth and healthy investment in 2017. Colliers report highlights: Net Absorption was positive, but 18 percent below the 5-year average due to scarcity. The Vacancy rate reached the lowest point since early 2003, before the last development boom. New development picked up late in 2017, with several new build-to-suit projects underway. In addition, average rents increased modestly overall, Downtown asking rates increased more sharply. For those wondering about a new office tower being built downtown in the near future, back in 2015 pre-leasing agents for the Vanir Tower said that rents would have to rise to $3.10 a square foot before the Vanir Tower could be built and profitable. Last year the year over year asking rate rose 6.2% to $2.56 per SF compared to $2.41 per SF in Q4 of 2016.

O Street Project

State office project  at corner of 12th & O Streets in Sacramento

The Department of General Services is planning to issue a Notice to Proceed for this new midrise at the corner of 12^th & O Street. This project includes demolition of the existing vacant California Department of Food and Agriculture building and construction of the new building at 12^th & O Street.

The new building will be approximately 360, 000 total square feet, 11 stories at a cost of $274 million. The building will include first floor retail and a food court-style cafeteria with approximately 1,150 employees. Demolition is expected to be finished by summer of 2018 and the new building is expected to be completed in early 2021.

 Down the street at 7^th & O Street the State is also planning to construct another office building, construction is not expected to begin till early 2019. So far, these are the only large scale office projects expected to break ground in the near future downtown. 

https://www.documents.dgs.ca.gov/dgs/PIO/OStreetFAQs.pdf

https://www.dgs.ca.gov/dgs/Home/SacramentoOfficeBuildingProjects/OStreetBuilding.aspx

Sacramento Convention Center Expansion

Proposed renovation of Community Theater Center

Last night the City Council voted to approve both the expansion of the Convention Center and renovate the Community Center Theater at the same time. Plans included a hotel at the parking lot of 15^th & K Street. The hotel would be 350-rooms, 24-story and 300 feet tall. No developer has been named to build the hotel at this time and only rendering of the Community Center Theater have been released.

Renovation cost for both the Convention Center and Community Center Theater could be as high as $200 million, but financing will not be clear till March of next year. Construction is expected to take approximately 18 months and begin in 2019. 

Sacbee, City Council Report & Draft EIR

Proposed expansion of Convention Center with
additional Ballroom on second floor

Proposed hotel site at 15 & K Street.