[doriankage]

Any word on the Aura property sale? Less than 12 hours left in the day....

[sugit]

Nope..I think all of us Sac people are awaiting the same news..

Also, all I think he has to just show is site control, which I believe would be an option to buy the land. Someone correct me if I am wrong..

[Web]

Nassi? Nassi? Nasssi?

quoted like ferris bueller......

[foxmtbr]

12 hours and one month left, you mean? Someone asked this in the Highrise Proposals thread, and innov8 proved (showed the article) that his date was extended to May 20.

[jwaters943]

I sure hope construction of the Aura goes better for you guys in Sac, than the Palladio has for us up here in Reno. The roof is still not finished and the whole project is severely over budget and more than a year behind schedule. I'm sure it doesn't help that they haven't moved any units in several months (prices are VERY high). On the bright side, the quality of construction appears VERY good and they've reportedly leased out two spaces on the bottom floor to Starbucks and Mikuni Sushi.

Link to more info. on the Palladio for those interested:

http://www.downtownmakeover.com/downtown_reno/Palladio.asp

[urban_encounter]

I sure hope construction of the Aura goes better for you guys in Sac, than the Palladio has for us up here in Reno. The roof is still not finished and the whole project is severely over budget and more than a year behind schedule. I'm sure it doesn't help that they haven't moved any units in several months (prices are VERY high). On the bright side, the quality of construction appears VERY good and they've reportedly leased out two spaces on the bottom floor to Starbucks and Mikuni Sushi.

Link to more info. on the Palladio for those interested:

http://www.downtownmakeover.com/downtown_reno/Palladio.asp


Things are not going well for Craig Nassi as of late and that might be a larger part of the problem than we are privy to. He was recently removed from a Denver project just like he was in Reno on the Palladio. That could be why banks are hesitating on loaning him additional capital. Though admittedly Banks judge each project on an individual basis.

[innov8]

Craig Nassi BCN Development blog. http://craignassi.blogspot.com/

[urban_encounter]

Craig Nassi BCN Development blog. http://craignassi.blogspot.com/


Interesting read...

Thanks Mike.

Hopefully he found his investors in NY.

[Phillip]

Things aren't going well for Nassi or for Corus, Aura's lead bank. Corus CEO Glickman states that Corus will continue to fund condo loans. I suspect they'll mostly be looking to fund very low risk projects. Not sure if Aura falls into that category. From Crain's Chicago Business, 4/20/07:

http://www.chicagobusiness.com/cgi-bin/news.pl?id=24660


Corus earnings down as past-due condo loans jump

The condominium shoe finally dropped on Corus Bankshares Inc.
by Steve Daniels, Crain's Chicago Business
4/20/07

Past-due condo loans in the first quarter jumped for the Chicago-based lender, which has focused almost exclusively on the condo-conversion and new-construction markets nationally over the past few years and has seen its stock punished as investors assumed the housing slowdown would take its toll.

Four ailing condo-conversion projects — two in southwestern Florida and one each in Phoenix and San Diego — helped boost Corus’ past-due loans to $205 million from $115 million in the fourth quarter and almost no past-due loans in first-quarter 2006. About 5% of Corus’ $4.7 billion in loans are now delinquent, up from virtually none a year ago.

First-quarter earnings of $26.4 million, or 46 cents per share, fell 39% from year-ago profit of $43.4 million, or 75 cents per share. Excluding a paper loss on a stock Corus holds in subprime lender Fremont General Corp. in California, Corus’ earnings would have declined 17% to $36.3 million, or 63 cents per share.

In a statement accompanying the quarterly earnings report, Corus CEO Robert J. Glickman warned that the bank hasn’t yet seen the worst of the condo slump.

“Evidence of this slowdown is clear from the decline in loan originations, the resulting decline in loans outstanding and an increase in problem loans,” he said. “It would not surprise us to see an even greater impact on earnings over the next several quarters, or even years, depending on when the market improves.”

But he said Corus would keep making condo loans. “We are very well positioned to capitalize on the eventual housing recovery that we are confident will occur,” he said.

Corus shares fell 3.5% in midday trading Friday to $16.69.

“I think the condo market will affect them more in ’07 than in ’06. And it will in ’08 as well,” said Peyton Green, a bank analyst at FTN Midwest Securities Corp. in Nashville, Tenn., who has a neutral rating on Corus’ stock.

But he said Corus has the financial wherewithal to ride out the downturn. “They still have a ton of capital. I don’t think there’s an issue there,” he said.

[benhol]

Here is some rather interesting (okay... bizarre) news about Nassi. I guess the New York Observer doesn't read any west coast news...

http://www.observer.com/20070416/20070416_John_Koblin_finance_commercialbreaks.asp

[urban_encounter]

I suspect they'll mostly be looking to fund very low risk projects. Not sure if Aura falls into that category.


Condo loans are what Corus specializes in.


I doubt that they would consider a building 65%-70 pre-sold prior to the first shovel of dirt being turned, a "risk". But who knows??? I'm not in the business of loaning tens of millions for condos. I'm sure that they will look at the fact that new home sales in the region increased by 30% in the first quarter of 2007..... That may lead them to conclude that the market is starting to turn the corner?

Personally I'm more concerned about the second mezzanine loan that Nassi can't seem to secure form MeeCorp.

[Phillip]

Here is some rather interesting (okay... bizarre) news about Nassi. I guess the New York Observer doesn't read any west coast news...

http://www.observer.com/20070416/20070416_John_Koblin_finance_commercialbreaks.aspThat IS bizarre! (The article quotes Nassi as saying he's under contract to purchase five buildings in Midtown Manhattan.) Nassi seems to be jumping from this to that and never finishing anything.

[Phillip]

I doubt that they would consider a building 65%-70 pre-sold prior to the first shovel of dirt being turned, a "risk". But who knows??? I'm not in the business of loaning tens of millions for condos. I'm sure that they will look at the fact that new home sales in the region increased by 30% in the first quarter of 2007..... That may lead them to conclude that the market is starting to turn the corner?

Personally I'm more concerned about the second mezzanine loan that Nassi can't seem to secure form MeeCorp.Almost all those Aura deposits were made almost a year ago now, and a lot has changed over that year. Some people who would have qualified for a loan a year ago won't qualify now. And some who still qualify have probably changed their mind. (At least one posted on this forum that he didn't want to wait any longer and purchased at 18th & L.)

I don't know how many "dropouts" there are, if it's a small number or large. But if Corus is serious about doing this loan they should be wanting to know how current that 65-70% number is, and someone should be contacting all those depositors from a year ago to verify that they're still in and still qualified. Maybe that's happening. If it's not then I'm skeptical that they'll deliver the loan.

[Web]

Nassi is exactly what you think he is......a developer......always looking for the next deal. If 5 dont happen maybe 1 will.........

[urban_encounter]

Aura tower developer seeks land option extension
By Terri Hardy - Bee Staff Writer
Published 11:44 am PDT Monday, April 23, 2007



The developer of the proposed Aura Condominiums downtown, still working to hammer out his financing for the project, has asked for more time to purchase land for the job.

Developer Craig Nassi wants to build a 39-story luxury condominium tower at 601 Capitol Mall but does not own the property. He had until last Friday to exercise his option to buy the land.

The owner of the site, developer David Taylor, said Monday that Nassi asked for an extension. Before that request is granted, Taylor said he wants to speak with Nassi's lenders and equity partners this week.

Nassi also wants a $10 million loan from the city to bridge a funding gap on the project.

City leaders, including members of the city council, say they see the venture as a key catalyst for development downtown.

City officials have said the developer will recieve a $132 million loan from Corus Bank and is shopping around for a lender for a second "mezzanine" loan.

[enigma99a]

Aura tower developer seeks land option extension
By Terri Hardy - Bee Staff Writer
Published 11:44 am PDT Monday, April 23, 2007



The developer of the proposed Aura Condominiums downtown, still working to hammer out his financing for the project, has asked for more time to purchase land for the job.

Developer Craig Nassi wants to build a 39-story luxury condominium tower at 601 Capitol Mall but does not own the property. He had until last Friday to exercise his option to buy the land.

The owner of the site, developer David Taylor, said Monday that Nassi asked for an extension. Before that request is granted, Taylor said he wants to speak with Nassi's lenders and equity partners this week.

Nassi also wants a $10 million loan from the city to bridge a funding gap on the project.

City leaders, including members of the city council, say they see the venture as a key catalyst for development downtown.

City officials have said the developer will recieve a $132 million loan from Corus Bank and is shopping around for a lender for a second "mezzanine" loan.

Nassi won't get this done. : ( I wish another developer would take over the project..

[sugit]

City officials have said the developer will recieve a $132 million loan from Corus Bank and is shopping around for a lender for a second "mezzanine" loan.

I should be the last person to blow someone up for spelling errors, but these people are paid to write..."i" before "e" except after "c"...we all learned that in 2nd grade :D

On Aura, I guess it's good news he is still working on it, but I just don't know what to think of this thing anymore.

[TowerDistrict]

i think at this point, the city might want to take this as an indication to how Nassi does business. I wouldn't be terribly confident lending him $10 million -

would you?

[foxmtbr]

I should be the last person to blow someone up for spelling errors, but these people are paid to write..."i" before "e" except after "c"...we all learned that in 2nd grade :D

This proves that the Bee is written by first graders! :P

I've encountered so many grammatical errors in the Bee that I don't even notice them anymore.

[Phillip]

If Nassi has down payment money for a $260 million office building on New York's Park Avenue PLUS four other Midtown Manhattan buildings then why does he need high interest rate mezzanine financing or a $10 million loan from Sacramento to start Aura? :???:


Here's a quote from the New York Observer article benhol posted 4/21:

Welcome to New York, Craig Nassi! The Denver-based developer might be an unfamiliar name to you today, but Mr. Nassi is someone you’ll know soon.

He told The Observer that he’s in contract to buy six buildings, including five in midtown and one at 315 Park Avenue South. Mr. Nassi confirmed the midtown south buy, but wouldn’t name the others. All in all, he said, he’s going to buy up to three million square feet in Manhattan.

So who’s Mr. Nassi? He’s 37, a luxury-condo developer turned office-space convert who prefers e-mail to phone calls and even has a blog (craignassi.blogspot.com).

He wouldn’t confirm the price for 315 Park Avenue South, but the 330,000-square-foot building likely went north of $260 million. And he said he would place an office for his company, BCN Development, inside this purchase.

[urban_encounter]

I should be the last person to blow someone up for spelling errors, but these people are paid to write..."i" before "e" except after "c"...we all learned that in 2nd grade :D

On Aura, I guess it's good news he is still working on it, but I just don't know what to think of this thing anymore.


The Bee has really gone down hill since McClatchy purchased the Star Tribune (which they've since sold)..

The Bee has let some of their best staff writers go over the past couple of years, imho.

Expect things to get much worse as a result of their purchase of Knight Ridder...


On Aura, it will be a shame of this project sinks because Nassi couldn't nail down a $14 million dollar mezzanine loan...

But it's not looking good at all imo. At some point Nassi's going to be forced to go back to his buyers to ask for a contract extension/addendum just as Saca has, thus delaying the project even longer...

I don't blame David Taylor for wanting to speak with his lenders before agreeing to the extension.

[ltsmotorsport]

^I don't either. Nassi put himself in this position. I really want to see the project pull through, but damn this is tough to watch unfold.

[snfenoc]

For those of you who are like me (i.e., morons) and thought, 'Why does Nassi want to build a $14 million mezzanine (http://en.wikipedia.org/wiki/Image:Ottawacapitolmgs2.jpg) in Aura? It's not necessary. He should just build it without a mezzanine,' here is the straight dope: http://en.wikipedia.org/wiki/Mezzanine_loan

[Phillip]

Nassi posted a picture of his new purchase on his blog yesterday.

http://craignassi.blogspot.com/

I wonder if that deal actually closed. Yes or no, Nassi's focus seems to wander.

[urban_encounter]

Nassi posted a picture of his new purchase on his blog yesterday.

http://craignassi.blogspot.com/

I wonder if that deal actually closed. Yes or no, Nassi's focus seems to wander.


I think that if the guy is going to remain in the condo business he's got to make Aura work..

He's now failed at his last two developments in Reno and Denver. Sacramento would make strike three...

Maybe that's why he's beginning to focus on the office market in NY???

[Phillip]

I think that if the guy is going to remain in the condo business he's got to make Aura work..

He's now failed at his last two developments in Reno and Denver. Sacramento would make strike three...Well Nassi doesn't seem to be working very hard to make Aura happen. If he's serious about Aura Nassi should be much more physically present in Sacramento during this "make or break" phase---cementing a relationship with the City Council, looking for local financial backers, leading the drive to get those last 30% of units sold.

And I agree, if Aura fails Nassi's credibility as a developer is shot; if it isn't already. I'm more a fan of Aura than 301CM. I really like the Liebskind (Leibskind?) design and I think Aura's size is closer to what Sacramento can digest now. If it's over I hope it ends quickly. Enough extensions. What more do the banks have to consider?

[sugit]

If one only of these gets built, I really really hope it The Towers. Not only because its more housing, retail and a hotel, and I like the symbolic nature of the two buildings ..but also the simple reason that Saca is a local guy and if he gets this project built and is successful, I think he will keep building in downtown.

Now I really like Aura and really hope it gets built as well, but I think Nassi is going to be a one project and done developer in Sacramento. We can already see he is moving out of condos into NY offices.

[Phillip]

I'm not the only one confused about spelling of the Aura architect's name. I Googled and the correct spelling is LIBESKIND.

But on Nassi's BCN website Libeskind's name is spelled THREE different ways on the same page!! :haha:

LIBESKIND
LIBESKIN
LIEBESKIND


http://www.craignassi.com/news.php

Am I reading too much into it saying this lack of attention to details is a concern?

[innov8]

Well Nassi doesn't seem to be working very hard to make Aura happen. If he's serious about Aura Nassi should be much more physically present in Sacramento during this "make or break" phase---cementing a relationship with the City Council, looking for local financial backers, leading the drive to get those last 30% of units sold.

I don't think Nassi needs to be present in Sacramento during this time. The
banks that will be lending the money aren’t here, the City Council has agreed
to extend the time he says he needs. Right now he needs a bank to agree to
lend him the Mezzanine loan... that would require schmoozing anywhere else but here.

[Schmoe]

If one only of these gets built, I really really hope it The Towers. Not only because its more housing, retail and a hotel, and I like the symbolic nature of the two buildings ..but also the simple reason that Saca is a local guy and if he gets this project built and is successful, I think he will keep building in downtown.

Dude whatever! You want it built cuz it's TALLER!!! :D

[Phillip]

Aura tower developer seeks land option extension
By Terri Hardy - Bee Staff Writer
Published 11:44 am PDT Monday, April 23, 2007


...The owner of the site, developer David Taylor, said Monday that Nassi asked for an extension. Before that request is granted, Taylor said he wants to speak with Nassi's lenders and equity partners this week. Well I'm glad to hear that Taylor will be talking to Nassi's banks directly. Taylor will get to the bottom of this.

[joninsac]

Here's what the Bee article from March 30 says about the mezzanine loan -

"Nassi will receive a $132 million loan from Corus Bank. It's a second loan of $14.5 million from MeeCorp Capital Markets that has been delayed, Dangberg said.

Dangberg said he has talked to the investment group and has been told the group approved the loan."

So, it sounds like the Meecorp loan is approved. But the staff report given to the city council at the final city loan approval meeting mentions that Kenlin Capital LLC is a mezzanine lender. And then the latest Bee article says this -

"City officials have said the developer will recieve a $132 million loan from Corus Bank and is shopping around for a lender for a second "mezzanine" loan."

What is going on here? Is Nassi looking for two mezzanine loans?

[ltsmotorsport]

Sounds like something must have fell through. This thing is nothing but drama.

[urban_encounter]

Here's what the Bee article from March 30 says about the mezzanine loan -

"Nassi will receive a $132 million loan from Corus Bank. It's a second loan of $14.5 million from MeeCorp Capital Markets that has been delayed, Dangberg said.

Dangberg said he has talked to the investment group and has been told the group approved the loan."

So, it sounds like the Meecorp loan is approved. But the staff report given to the city council at the final city loan approval meeting mentions that Kenlin Capital LLC is a mezzanine lender. And then the latest Bee article says this -

"City officials have said the developer will recieve a $132 million loan from Corus Bank and is shopping around for a lender for a second "mezzanine" loan."

What is going on here? Is Nassi looking for two mezzanine loans?


If i were city staff, I might recommend that the city offer to loan Nassi the money for the mezzanine at market rate.

Call his bluff...


But as i said, I think Taylor is doing the right thing. If there is any chance remaining for Nassi to get this done (which I'm increasingly skeptical he will), then Taylor has nothing to lose by extending the deadline. If however Taylor speaks with Nassi's lenders (assuming Nassi is willing to allow him to do so) and the lenders tell Taylor 'it aint gonna happen', then Taylor can deny the extension and bring this ongoing drama to a close.

[Web]

Aura tower developer seeks land option extension
By Terri Hardy - Bee Staff Writer
Published 11:44 am PDT Monday, April 23, 2007



The developer of the proposed Aura Condominiums downtown, still working to hammer out his financing for the project, has asked for more time to purchase land for the job.

Developer Craig Nassi wants to build a 39-story luxury condominium tower at 601 Capitol Mall but does not own the property. He had until last Friday to exercise his option to buy the land.

The owner of the site, developer David Taylor, said Monday that Nassi asked for an extension. Before that request is granted, Taylor said he wants to speak with Nassi's lenders and equity partners this week.

Nassi also wants a $10 million loan from the city to bridge a funding gap on the project.

City leaders, including members of the city council, say they see the venture as a key catalyst for development downtown.

City officials have said the developer will recieve a $132 million loan from Corus Bank and is shopping around for a lender for a second "mezzanine" loan.


See April 20th was the date..........................

[innov8]

Yes, but the drop dead date is May 20th unless Taylor pulls the plug.

[urban_encounter]

See April 20th was the date..........................


:uhh:

I didn't say that April 20th wasn't the date...............


Nassi has requested so many extensions, that it's difficult to tell when this drama will end.

[Majin]

If i were city staff, I might recommend that the city offer to loan Nassi the money for the mezzanine at market rate.

Call his bluff...

Right now, I honestly think this is the best course of action the city council could take. Anybody know any of the council members personally? Throw this suggestion at them and see what they say.

The mezzanie loan Nassi needs is only $10M right? The city council should call up Nassi and say look, we are loaning you $10M and an addiontal $10M mezzanine loan, here are the checks in your hand right now. Nassi will then have absolutely no choice but to show his cards.

If he still says he needs an extension, he was full of it from the start and the city should not give him a dime.

[urban_encounter]

Nassi needs $14 million for the mezzanine loan...


So if the city were going to loan him an addtional $14 million on top of the $10 million that they' ve already agreed to loan, him that would be a $24 million city investment..

How badly does the city want or need this project???

Although I honestly don't know whether Nassi is capable of pulling this off, I doubt that he's spent this much time and effort getting to this point, only to jerk the city around. If so, the joke would be on him for all of the time and money he's already invested.


Now again with his recent failings, maybe he just doesn't have what it takes to be a condo developer any longer. Especially with his failings in Reno and Denver. Maybe lenders are taking those failings into consideration?

[SacTownAndy]

I can't remember the original construction time table for Aura. Does anyone know when Nassi will need to start construction by before he has to negate the contracts with his buyers (like Saca just did) for not being completed on time?

[urban_encounter]

I can't remember the original construction time table for Aura. Does anyone know when Nassi will need to start construction by before he has to negate the contracts with his buyers (like Saca just did) for not being completed on time?


As I understood it, he needed to have the foundation poured by April. I'm not sure whether that meant the beginning or end of April; but regardless it's nearly May and he's a long way from having a foundation poured.

His contracts are probably worthless at this point to some degree.

[cozmoose]

http://i86.photobucket.com/albums/k118/cozmoose/misc/tombstone.jpg

[urban_encounter]

http://i86.photobucket.com/albums/k118/cozmoose/misc/tombstone.jpg


:haha:


Creative....

[Phillip]

Two weeks have passed since Taylor said he wanted to speak directly with Nassi's lenders and equity partners. There should be some news soon?

[urban_encounter]

Two weeks have passed since Taylor said he wanted to speak directly with Nassi's lenders and equity partners. There should be some news soon?

Next to the US Bank Tower, Denver developer Craig Nassi hopes to build Aura, a 39-story luxury condominium tower designed by renowned architect Daniel Libeskind that will cost about $177 million.

But Nassi has yet to break ground at 601 Capitol Mall because he hasn't purchased the land from Taylor. Last month, Nassi's deadline passed to line up financing. He has asked for more time, but Taylor said Thursday he won't formally grant an extension without talking directly with Nassi's lenders and equity partners.

Nassi, who has maintained all along that Aura will be built, did not respond to requests seeking comment.


I'm not certain whether Taylor's talked with Nassi's lenders or not.

I have a feeling he hasn't though...

[Phillip]

It seems like Taylor's question to Corus---"Are you still committed to doing this loan?"---would only need a ten minute conversation to answer. And if Corus isn't returning Taylor's calls....well that's an answer too.

[innov8]

I think the first week of June will be a great week for Aura.

Keyword: WexTrust Capital (http://www.wextrust.com/)

[Majin]

I think the first week of June will be a great week for Aura.

Keyword: WexTrust Capital (http://www.wextrust.com/)

Went to the website and I didnt see any information on Aura or even what that company has to do Aura.

[innov8]

WexTrust is a Capital Investment firm... I think you can figure it out from here.

[Majin]

So they are the ones funding the rest of Aura? Or taking over the entire project?

What is suppose to happen the first week of June? An accountement? Construction?

[foxmtbr]

^ I believe it is a secret and you're supposed to assume things from the information provided. I'd guess you're on the right track though. :)

[cozmoose]

So they are the ones funding the rest of Aura? Or taking over the entire project?

What is suppose to happen the first week of June? An accountement? Construction?

Don't you know better than to hope? This is Sacramento we are talking about here. Land of No Can Do.

[sugit]

68 more days for Aura.....
________________________________________________________________

(Redevelopment Agency) Aura Condominium Project [To Be Delivered]
Location: 601 Capitol Mall, Central Business District (District 1)
Recommendation: Adopt a Redevelopment Agency Resolution extending the period of negotiations with Aura at 601 Capitol Mall, LLC for 68 days, expiring on July 31, 2007 to develop the terms of a maximum $10,000,000 market-rate loan, which may be incorporated into an Owner Participation Agreement for the Aura condominium project. Contact: Leslie Fritzsche, Downtown Division Manager, (916) 808-5450, Economic Development Department.

[innov8]

^ Yep, the ride continues.

[arod74]

Jeez, you really have to wonder how much more patience people who have signed for units in either aura or the towers are going to have? I would be pulling out my hair as the endless procession of extensions keep rolling by. Its beyond comical now.

[TheDerek]

Jeez, you really have to wonder how much more patience people who have signed for units in either aura or the towers are going to have? I would be pulling out my hair as the endless procession of extensions keep rolling by. Its beyond comical now.


I imagine a good percentage of them knew the chance they were taking. Really all they did was give them a loan, the interest they recieve would be getting a pre-construction price on thier condo. Any time you give someone a loan, there's always a chance for default :tup:

[innov8]

I imagine a good percentage of them knew the chance they were taking. Really all they did was give them a loan, the interest they recieve would be getting a pre-construction price on thier condo. Any time you give someone a loan, there's always a chance for default :tup:


There is no risk to the deposits. The deposit gets held in a federally insured
escrow account and if the project doe's not get built or get built in a certain
time frame, you get your deposit back plus interest.

[brandon12]

^actually, I don't think the deposits are federally insured, but I could be wrong about that.

[TheDerek]

considering my major in school that's something I shoulda known :koko:

i dunno about California but most states by law require any deposit with a landlord to be held in a federally insured escrow account (this includes projects such as the towers/aura as well as deposits made when renting. ie. deposit on apartments etc). They are classified as non-refundable because the developer must default on his/her side of the contract for them to become refundable (which is why saca sent out a letter to all the people who made a deposit requesting them to extend their deadline). BTW does anyone know how many people asked for thier deposit back? I coulda sworn they already had to give thier notice if they didn't wasn it back. eh...

[TheDerek]

City staff to ask for delay of $10M loan request for Aura
Sacramento Business Journal - 5:08 PM PDT Thursday, May 17, 2007by Michael Shaw


City of Sacramento officials are preparing to ask the City Council on Tuesday to approve another 60-day extension on a $10 million market-rate loan to BCN Development, the developer of the $175 million Aura condominium project downtown.

The deadline on the loan has been extended several times to allow BCN founder Craig Nassi to secure financing.


City staff say the project's lenders and equity partners are still interested in the project, although the partners have not come to terms with the developer.

Nassi is working with Corus Bank as the main lender, which is considering a $131 million loan, according to city staff. WexTrust Capital of Chicago is a possible equity partner, while MeeCorp Capital Markets is a possible mezzanine lender.


ok so exactly when will the deadline be extended to?

[sugit]

July 31, 2007

[TowerDistrict]

ok so exactly when will the deadline be extended to?


what's a deadline when you can just extend it when you reach it? i think what we're seeing happen, is that the city will give Nassi 8 more years as long as they actually build it.

[sugit]

The city really has nothing to lose by extending the deadline. It's not costing them anything.

[brandon12]

Nothing really new here that Innov8 has disclosed already, but of course it's nice to see it in the Bee...
========================================

Nassi's Aura finds another backer
By Bob Shallit - Bee Staff Writer
Published 3:29 pm PDT Friday, May 18, 2007

Print | E-Mail | Comments (0)| Digg it | del.icio.us

Prospects are improving for one of the two luxury condos proposed for downtown.

A city official reported this week that a Chicago-based private equity firm, WexTrust Capital, is looking to help finance the stalled Aura high-rise condo project in downtown Sacramento. WexTrust would join Corus Bank, MeeCorp Capital Markets and the city in providing financing for the proposed 39-story tower at 6th and Capitol Mall.

Sacramento Assistant City Manager John Dangberg says he has spoken with all of the other lenders and assured them the city is committed to the project, being developed by Craig Nassi of Denver.

The $177 million project has a top-named architect in Daniel Libeskind and Nassi has collected downpayments for close to 70 percent of the units. But getting financing still has been difficult at a time when construction costs are rising and the real estate market is weak.

[innov8]

Their now fencing off the Aura lot :cool: I believe it's so it won't be a liability.

[Web]

Or too many things are being stolen from the storage of materials for 621.

But could be a sign.........send us more signs Mr Nassi!

[ozone]

Again it's nothing new but just a little more for today's bee. I was interested in the promo for monday about highrise condos next to the Sunrise LRT station. Personally I don't see why anyone would buy a highrise condo in Rancho instead of downtown Sac but I'm sure that there are people who would.

Chicago equity firm may back high-rise
By Bob Shallit - Bee Columnist
Published Saturday, May 19, 2007

A Chicago-based private equity firm has emerged as a possible new backer of the stalled Aura high-rise condo project in downtown Sacramento.

Assistant City Manager John Dangberg says WexTrust Capital is interested in backing the 39-story project proposed by Denver's Craig Nassi at Sixth and Capitol Mall.

The company has not yet committed to the $175 million project. But Dangberg says "they want to do the deal" provided they can work out terms with Nassi.

WexTrust would provide equity capital and join Corus Bank, the construction lender, and mezzanine lender MeeCorp Capital Markets of Fort Lee, N.J. The city also has agreed to chip in a $10 million loan -- a commitment that is likely to be extended another 60 days by the City Council on Tuesday.

The city's participation is relatively small but the institutional lenders might not back the project without it, Dangberg says. "We've told (the lenders) we're in this if you are," he says.

Lining up financing for this kind of project is tough -- especially when the housing market is depressed. But Dangberg says the lenders he's spoken with like this deal.

"They recognize this is a good market, that there's pent-up demand and a lack of this product type," he says. And, he adds, "they're bullish on our downtown."

[innov8]

I was interested in the promo for monday about highrise condos next to the Sunrise LRT station. Personally I don't see why anyone would buy a highrise condo in Rancho instead of downtown Sac but I'm sure that there are people who would.

Yeah, I still can't beleive they are proposing something this large.

[foxmtbr]

^ What? Did I miss something? Is there more news about a highrise on Sunrise?

[neuhickman79]

^ What? Did I miss something? Is there more news about a highrise on Sunrise?
I heard about that, too. There's already a few mid-rises (MAYBE one high-rise) across the street. So, it wouldn't really look out of place. Remember, there are a LOT of jobs over in that area. They're already building subdivisions and new housing developments over there just south of and right in the middle of those business parks. It's going to be a weird mishmash of urban and suburban. I guess it's better than completely suburban. Some of those townhomes are kinda cute actually.

[foxmtbr]

I would jump up and down with joy if they built more highrises right there. I live out here and I drive past the 11 story Marriott every day, wishing that it had some companions. They could certainly knock down the old Home Base building and put something in there as well.

[ozone]

foxmtbr we're talking about the teaser in the Bee -the article will be in Monday's edition. I have no problem with suburban highrises and I think it'll look cool from the freeway. I just personally do not get the whole exurbia thing. But hey whatever.

[foxmtbr]

^ Oh!! Now I've found it in the Bee. Twin 36 story towers?!? That's crazy!

I support it. :tup:

[Fusey]

That area is already a mesh of residential, commercial, and industrial developments, so if these towers get built they may not look out of place. :haha:

[Phillip]

Yeah, I still can't beleive they are proposing something this large. Hey, that's my line! :P

[neuhickman79]

Seriously, these could be the biggest suburban highrises in America besting the King and Queen in Sandy Springs, GA. Can someone post a link to the teaser?

[foxmtbr]

There isn't any link, it's only in the print version. It's at the bottom of the front page of the business section in yesterday's paper. The picture is very small, but the towers look like average residential towers.

I'd scan it, but I already threw away the paper. :(

[NewToCA]

If you recall, about four months ago I had mentioned that Rancho Cordova was planning to make Folsom Blvd a downtown area. This project fits into the vision that they were espousing, along with some office buildings which would be in the 15-25 floor range. Rancho Cordova already has over 12 million square feet of office space concentrated around White Rock and Zinfandel.

This stuff isn't odd back east. Washington DC has towers in Bethesda, MD, Chantilly, VA and Tysons Corner VA. The concept makes sense because it spreads out your residential and business centers, instead of having too many people commute to one central area.

I understand most of you folks are all gung ho about high rise central core development, but this really does make sense if you are looking at a metro area anticipated to increase by 50% to 3 million folks within the next 25 years or so. Sub regions up on I-80 near Roseville and down Rt 50 out at Rancho Cordova would help ease commuting problems over the long term. The road situation is poor here, and the lack of a beltway with n/s and e/w highways to a central core will be a severe issue as time goes by.

I know many of you also hate sprawl, but the closure of Mather and McClellan create different development opportunities on rather ugly land.

[foxmtbr]

^ I read that Rancho is looking to expand to about 350,000 people by 2020. It's somewhere between 50K and 100K now. That's pretty ambitious, so I expect there certainly must be quite a bit of dense development in the coming years. I'm all for it. :)

[bennywah]

^

many areas of the country do suburban high rises, here in san diego La Jolla, clairemont, mission valley, all areas that are part of the city of San Diego proper but are considered communties have mixed used housing high rises, ect, it really helps keep traffic down and allows people to stay in one area to work, eat, and play.

Many areas of phoenix do this as well as some other parts of so-cal. Its better urban planning imho than just strictly building spraling neighborhoods with all of the jobs centered in one part of the city, watch for roseville, elk grove ect within the next 20 years to start building up, its the trend especially as gas continues to soar and eventually land will run out in those cities.

[joninsac]

I know many of you also hate sprawl, but the closure of Mather and McClellan create different development opportunities on rather ugly land.

I disagree. The Air Force left behind two extremely valuable assets in the form of long runways (much longer than SMF) capable of handling large jets. Tearing them up to build yet another subdivision would be very shortsighted.

[otnemarcaS]

There isn't any link, it's only in the print version. It's at the bottom of the front page of the business section in yesterday's paper. The picture is very small, but the towers look like average residential towers.

I'd scan it, but I already threw away the paper. :(

Story is now posted in the Sac Construction Thread (http://forum.skyscraperpage.com/showthread.php?t=126483&page=50)

[pearljammer]

Isn't this the Aura thread???

[innov8]

But could be a sign.........send us more signs Mr Nassi!

Today's sign is that they're ripping out the concrete parking lot where Aura would rise.

[sugit]

I guess that sounds like some good news., even if it's a little..Is the site fenced off?

[innov8]

Yes

[sugit]

Not sure what that means considering they just asked for an extention, but any progress on the site is good.

[TowerDistrict]

i hope they're not carrying through with that little landscaped surface parking lot plan featured on the website...

[foxmtbr]

^ You mean the parking lot shown in the 621 renderings? Oh God, I'd kill myself right now... :no:

I'll assume that the tearing up of the current parking lot is good news unless it turns out otherwise.

[innov8]

The city approved Aura's extension today. I'm super confident the tower
will be built... I just don't have a date yet :hmmm:

[sugit]

Were there any interesting comments made?

[travis bickle]

The city approved Aura's extension today. I'm super confident the tower
will be built... I just don't have a date yet :hmmm:

Man... that is great freakin' news innov8. If Aura moves forward and we see the green light within a month, I'll have greater confidence that the Towers will get built - as proposed - too. I gotta say that I'm supremely disappointed with Calpers here. They got into California urban revitalization with noble purpose, but seem to have lost their balls along the way. I know they need to answer to their members, but this project not just fly, it will soar if given the opportunity. Was there a change in Calpers leadership along the way? City leaders have got to broker a peace to keep this outstanding project on track. These two projects on CM will be the catalyst for more great things for Downtown.

Oh well, judgment day is near and we'll soon know either way.

[innov8]

Were there any interesting comments made?

I don't know... a little bird told me the good news ;)

[reggiesquared]

I honestly think one or the other has a better chance of being built than both. I think one has to break into the market and lead the way inadvertently taking customers away from the other. I think if Aura starts construction it may be the final spike in the tower's coffin for a while. If Aura is super successful, sells out and the demand is still high we'll see it easier for others to get built. But lets not start sucking each others knee caps just yet, building a residential tower in one of the worst housing markets in the nation would be an incredible feat. I really hope it gets off the ground though! :yes:

[JeffZurn]

Wasn't it at the Aura site they were doing some test piles back at the beginning of the year?

[foxmtbr]

^ :yes:

They never proceeded with construction though, and ended up with this financing hubub. I'd expect contsruction to begin soon though, I have a good feeling about this. :)

[JeffZurn]

If Aura does go up, would it be safe to say Epic might have a pretty good chance of getting built later? Between those two buildings it would make for a pretty impressive skyline

[innov8]

http://img252.imageshack.us/img252/9818/auralot20070523copymn4.jpg (http://imageshack.us)
Those orange painted areas are where test piles went in July of last year.

http://img252.imageshack.us/img252/821/aura220070523copywi3.jpg (http://imageshack.us)

[sugit]

Great shots! Thanks for posting these for us...

[foxmtbr]

Wow! 621 is stunning from the side! :D I'd certainly sacrifice that view to have Aura though.