Township Nine

Residents at Cannery Place Apartments will move in this September.

View down 7th Street.

Looking south from the levee.

The Township 9 project is a mixed-use development in the Richards Boulevard Redevelopment Area. 2,500 housing units are planned in addition to 840,000 square feet of office space, and 145,000 square feet of urban retail. Residents at Cannery Place Apartments will move in this September! Township Nine is a 65-acre mixed-use development  costing around 2 billion dollars and take approximately 10 years to complete.

https://www.facebook.com/TownshipNine

http://www.t9ontheriver.com/

 

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.

Lofty Proposals

Sacramento Skyline

I'd like to say that downtown development is on the rise, proposals emerging every other week for high-rise housing and other wise anticipating that the market will continue to improve. Some believe this is all due to the arena being built on K Street while others see the overall market coming back and the economy will prosper for years to come.

Over the years, a trend I have keep my eye on during several economic cycles is how downtown Sacramento is always late getting major projects started before the economic cycle busts. Many big projects never getting past the proposal stage. While many cities had projects rising out of the ground, Sacramento’s proposals were still on the drawing board when the market started to tank. In the last three economic cycles, Sacramento seemed to be 1 ½ years behind getting projects started before the economy dipped into recession compared to other cities. While most other cities reaped the benefits of getting out of the gates early with their projects while the economy was good, Sacramento was still on the sidelines.

 The 2008 recession left eight sizeable projects on the drawing boards and many small projects. A few of the large were Metropolitan, Aura, Epic, Capitol Grand, St. Anton, Towers on Capitol Mall, 700i, and the second Capitol Towers proposal.  The 1990 recession left even more high-rise proposals on the drawing board than I listed above including the first Capitol Towers proposal.

If the current (sluggish) economic cycle softens even more and the Fed continues to reins in its monthly QE3 printing of money, and other factors, it’s likely that many of the current proposals won't move beyond the drawing board. The first quarter of this year saw GDP shrink by -2.9%. It’s anticipated that the Feds will raise interest rates in the First Quarter of 2015. It’s fun to cheer these proposals through the process, but I’m highly cautious as to how many proposals will break ground only because of where we are in the current economic cycle.

If Sacramento sees half the current proposals completed, I would count that as an enormous success. I’m glad to see the arena being built downtown, but I’m highly skeptical about the city’s financing numbers and why they still don’t want to talk about it… like when the bond payment rate nearly doubles in a few years.

Regarding 301 Capitol Mall, my contact within CalPERS say we should not expect to see a proposal for the site for at least 12 to 16 months because of uncertainty about the economy. If the latest press release from a few months ago draws enough positive attention, we might see combination of sectors in the proposal that include office, residential, retail or hospitality. 

Sac Valley Station Renovations

Sac Valley Station

Scheduled to begin late Summer, the historic Sacramento Valley Station renovation will expand the availability of transit options as well as offer a mix of retail and business uses at the station. Currently the 7^th busiest train station in the nation, some improvements slated to take place at the historic station include new bicycle facilities for storage and bike rental, architectural lighting of the south facade and major public spaces, and upgraded ticketing machines.

Inside the historic facility, the City will be creating a livelier atmosphere, with new office space, new dining terraces, landscaped seating areas, and decorative artwork.

The renovation is funded by a federal grant and local Measure A sales tax.

This project is scheduled to be complete in 2016, the 90^th anniversary of the station’s opening.

$10.5M Structural Repairs to Depot – completed in fall 2013. $30M Historic Renovation of Depot -design underway, completion by late 2014/early 2015.

For more project details, visit Sacramento Valley-Station .

The Warehouse Artist Lofts

The WAL projects expected to be completed in late 2014. This $41 million project continues to build upon the industrial district historical past and supported by the Sacramento art community. When CADA’s WAL is finished, it will have 116 housing units, rooftop deck and 13,000 sf of ground floor retail.  The WarehouseArtist Lofts (WAL) (11th & R Streets)

The Warehouse Artist Lofts - 1108 R Street, Sacramento CA

The Warehouse Artist Lofts - 1108 R Street, Sacramento CA

The Warehouse Artist Lofts - 1108 R Street, Sacramento CA

The Warehouse Artist Lofts - 1108 R Street, Sacramento CA

The Warehouse Artist Lofts - 1108 R Street, Sacramento CA

WX Freeway Bright Underbelly

Conceived by local arts, a mural project called Bright Underbelly could transform the underside of the W/X freeway with a sprawling sky-blue canopy, bringing new life to the blank concrete surface that looms above where thousands gather every Sunday for the Sacramento Central Farmers’ Market. Renderings of the ambitious 70,000-square-foot piece were released this morning. To paint the mural, approximately $150,000 in financial pledges necessary to bring the mural to fruition.

Information about the Bright Underbelly project and available donor levels can be found at www.brightunderbelly.com, and you can keep tabs on the project's progress at its new Facebook page.

Sacramento Commons

The current Capitol Towers apartment mega block on 7^th Street is slowly going through the review and entitlement process for a pair of 25 story high-rises and 22 story building. The Sacramento Business Journals reporting that the developer, Kennedy Wilson Inc., has released some renderings of the project. No public hearings have been scheduled yet. The proposal includes 1,200 new apartment and all ground floor villas would be demolished. Hopefully this project can break ground before the market correction.

The Metropolitan Comeback?

It appears as if this former proposal that never got off the drawing board in 2007 is going to make another go at it. Sactown Magazine’s reporting that an estimated ground breaking for the tower is on the horizon in 2015. Of course, the economy has to improve further for this proposal to break ground.  The housing component is being promoted as “luxury”, does downtown have enough willing buyers make this possible? The last big project that sold units like this was the L Street lofts and it was only able to sell 22 of the 92 units in the building… now they are all rentals and the building was foreclosed on.

16th Street Senior Housing

700 16th St. as Senior Artist Community @ Mansion Flats

The former Clarion Hotel at 700 16^th Street has a mixed use project planned for the site intended for seniors. According the Sacramento Business Journal, the current building would be wrecked and replaced with a four story 156,481sf project that would include 160 living units and ground-level commercial spaces at the corners.

Downtown Plaza is History

Farewell to Sacramento's Downtown Plaza as it once was! Unfortunately over the last 10 years the mall has declined to where more than half the stores are empty, and there is almost no one shopping. I can still feel the vibe of the mid 90’s when America Live was an entertainment destination and the new mall was vibrant, and full of shoppers. 

Sacramento Downtown Plaza



Sacramento Downtown Plaza



Sacramento Downtown Plaza

Sacramento Downtown Plaza

Sacramento Downtown Plaza

Sacramento Downtown Plaza



Sacramento Downtown Plaza

Sacramento Downtown Plaza

Sacramento Downtown Plaza

Sacramento Downtown Plaza

Sacramento Downtown Plaza

Sacramento Downtown Plaza

Sacramento Downtown Plaza

Men's Macy's at Sacramento Downtown Plaza

Sacramento high-rise



Where foot print of new arena will be in the current Downtown Plaza

300 Capitol Mall

View from above of Downtown Plaza

16th Street Resurgence

CADA has really come through in the redevelopment of 16^th Street. East End Gateway 2 & 3 has turned out better than I had hoped. It took seven years from proposal to completion and the results are fantastic. Development Costs $26 million.

East End Gateway 2 & 3

East End Gateway 2

East End Gateway 3

East End Gateway 2 & 3

16 Powerhouse is moving right along. Work is currently being done on 6^th floor and the installation of windows. This high-end, six story complex with apartments going for $1,700 to $3,500 per month will be Sacramento's first privately funded midtown housing development at $16.4 million.

16 Powerhouse

16 Powerhouse

16 Powerhouse

The Warren is just starting to move the dirt around. This $34 million project is a far cry from what was proposed there in 2007 link. Construction ends first quarter 2015.

The Warren

Sacramento City Unified School District-owned property

Sacramento City Unified School District-owned property… several proposals being considered.



16th and N Street Proposal

 
D&S Development has proposed developing Sacramento City Unified School District-owned property at 16th and N streets in midtown Sacramento into a 132-room boutique brand hotel topped by 30 penthouses, 50 apartments through adaptive re-use of the former school building on the site, 9,400 square feet of retail and 10 townhomes on the property. The Sacramento Business Journal is reporting, the D&S proposal would lease rather than buy the property at 1619 N St. for 100 years at $100,000 annually, with 5 percent increases every five years. In doing so, the development would infuse the property with far more long-term value for the district. Estimated to be a $60 million investment. Two other proposal are also being considered for the site, including another mixed-use housing project dubbed The Jefferson Midtown and a proposal dubbed the California Tribal Life Center, which would involve relocation and expansion of the existing Native American health center in midtown, a cultural center, office space and housing.

Kings Arena Approved

The Sacramento city council has approved the final Kings arena plan last night with a 7-2 vote. The city will now go ahead with selling $298.4 million in bonds for the $477 million project, with about $226 million of that ultimately coming out of the public’s pocket. Over the life of the Bond the city will pay $715 million in principal and interest.

Construction on the sports facility will break ground this summer and open in time for the 2016-17 season. The 17,500-seat arena will be slightly larger than the Kings' current aging facility.

Downtown Mall Demolition

Downtown Mall as it is today

Is it fair to say that if demolition does not start by this time next year, the new arena project will be behind schedule? In my rough estimate, the cost to demo four blocks and clear the land before any work can be done will be around  $40 million or more.  My number is based on what it cost John Saca to clear the land at 3rd & Capital Mall which was $8 million. The old Sacramento Union building occupied only about half the block and did not have any underground parking.  The malls foot print covers nearly 100% of each block with two floors of below ground parking.

Is this demo expense going to be absorbed by Ranadive as an assumed cost overrun?

Groundbreaking of the WAL (Warehouse Artist Lofts) formerly Capitol Lofts

301 Capitol Mall Six Years Later

 

301 Capitol Mall former Towers site

It’s hard to believe how much has not changed at the former Towers site… it's been six years today since the job to construct two 53-story residential towers at Third Street and Capitol Mall was halted. Even if the two 600-foot towers estimated to cost $750 million project had been built, with the regions record home foreclosure rate over the last 4 years, today I imagine it would sit more than half empty like the L Street Lofts which only sold 22 of the 92-units. My contact at CalPERS says there are no plans to develop the site in the near future.

Just think, if 17 more condominiums would have sold to reach the bank requirement of 400 units, money from CalPERS and Deutsche Bank would have continued to invest in the project.

Sacramento Courthouse Delayed Indefinitely

Judicial oversight committee makes recommendations because of potential loss of funds designated for court construction.

SAN FRANCISCO—The Court Facilities Working Group voted today to recommend that four additional courthouse construction projects in Sacramento, Los Angeles, Fresno, and Nevada City be delayed indefinitely if the Legislature directs that court construction funds be used to finance the Governor George Deukmejian Courthouse in Long Beach.

The recommendations—which Justice Hill hopes will go before the Judicial Council in January 2013—include: a new criminal courthouse for downtown Sacramento, a replacement for the overburdened courthouse in Huntington Park for the Southeast Court District in Los Angeles, and renovation projects planned for downtown courthouses in Fresno and Nevada City. The draft
recommendations include a special direction for the Sacramento project: a recommendation that site acquisition proceed for that project, a $10 million commitment to the developer of the Railyards that would allow the project to proceed as planned when funding becomes available.

During the meeting, courts whose projects were slated for deferral gave presentations and answered questions from the working group. Using the same process that ultimately delayed seven projects last fall, the working group will post the draft recommendations on the California Courts website
for two weeks for public comment, then submit finalized recommendations to the Judicial Council for review early next year.

Sacramento - New Sacramento Criminal Courthouse - Draft Recommendations: Indefinitely delay, but move forward on site acquisition. http://www.courts.ca.gov/documents/CFWG-121312.pdf

http://www.courts.ca.gov/20171.htm

Blue Trees Art

The Blue Trees art installation in Seattle earlier this year - Courtesy of Konstantin Dimopoulos

Sactown magazine is reporting that on On Oct. 9, Australian artist Konstantin Dimopoulos will begin coloring about 20 sycamore trees on both sides of 13th street between J and K streets in downtown Sacramento, flanked by the convention center and the Sheraton Grand Hotel. Using eco-friendly, bright, ultramarine blue pigment, the artist will make a bold urban design statement while hoping to draw attention to global deforestation issues.

 

The Tree Foundation quickly partnered with the Sacramento Metropolitan Arts Commission, the Sacramento Convention & Visitors Bureau and Sactown magazine to help organize and fund the event. In only about a week’s time, the team raised approximately $25,000 from community groups and leaders to make the project a reality.

 

With the help of volunteers, Dimopoulos will paint the trees over the course of five days (Oct. 9-13). The paint is expected to last until the bark begins to shed in spring, so the trees will remain blue for approximately six months.