Sacramento Proposal/Approval/Construction Thread - III

[Majin]

Originally Posted by ltsmotorsport

One project on that list, Sacramento Commons, has a date with the Planning and Design Review Commission tomorrow. It's just for review and comment, not for approval, but important nonetheless.

http://sacramento.granicus.com/Gener...1&event_id=126

There has been a lot of vocal neighbor opposition to the project as currently proposed, and seemingly few speaking in favor. I would assume most forumers are in support of the project, and I'd urge you to send an email of support to the Commissioners, as well as Councilman Hansen. It's important that they hear the public support for good projects like these that get the kind of pushback and frankly misguided NIMBYism that this project has seen. If you can and are brave enough, voice your support directly in front of the commission.

Either way, the word needs to get out that there is public support for this kind of project, not just the small-thinking that is so often trumpeted.

Nothing wrong with showing up and speaking out at the council or emailing your support of the project... but to be honest I don't think it matters at all. With this council any highrise projects is a rubber stamp approval.

[ltsmotorsport]

Planning Commission still has the power to make serious changes though. Either way, never a bad thing to show public support for good projects.

[Majin]

Planning commissioners take first look at plan for downtown apartment towers
By Hudson Sangree
hsangree@sacbee.com
Published: Thursday, Jul. 24, 2014 - 11:16 pm
Last Modified: Thursday, Jul. 24, 2014 - 11:33 pm
Sacramento planning commissioners got their first look Thursday at a controversial plan to tear down 206 low-rise garden apartments and replace them with high-rise and midrise residential towers on a leafy superblock in the central city.

Read more here: http://www.sacbee.com/2014/07/24/658...#storylink=cpy

You know, with all of the midtown midrise construction and all of the suburban fringe construction, I find it quite maddening that the highrise residential construction is so late to the game reguarding the housing comback.

There are probably 20 or so midrise construction going on or about to start in midtown and westsac, but it seems like any residential highrise is at minium 2 years+ away before even breaking ground?

Why were so many midrise and suburban projects ready to hit the ground running? Even the billion dollar arena was ready to get the ground running, yet these residential highrises, which are much cheaper, are lagging along?

I feel that with the natomas levees being certified next year, and with lots of midtown/west sac projects completed, there will be 10,000's of new units ALREADY built before any highrise gets close to breaking ground, and by that time it may be too late.

[Mr. Ozo]

Originally Posted by Majin

There are probably 20 or so midrise construction going on or about to start in midtown and westsac, b

I believe the reason is they are made of wood. You will note all the midrises being built are a concrete base with up to 5 stories of wood. Beyond that you have to go concrete or steel.

[Majin]

Originally Posted by Mr. Ozo

I believe the reason is they are made of wood. You will note all the midrises being built are a concrete base with up to 5 stories of wood. Beyond that you have to go concrete or steel.

Yes, I understand 6 story midrises are much cheaper than steel skyscrapers, but that wasn't my point.

If cost were an issue, then these plans like the commons wouldn't exist. They developers obviously think they pencil out financial wise, but they are just very late in the game compared to say Legado de Ravel or 16 Powerhouse.

[Mr. Ozo]

It appears that Sacramento skyscrappers are built in 3-4 year periods and then nothing for 10 years. There is a big push in 68-72, then nothing until 89-93 and then nothing until 2003-2007. I'd imagine it has everything to do with financing as our parking lots and holes in the ground would attest. Also, since the costs are so much higher, you only have a brief window where property values are high enough to make it pencil before the next crash.

[ltsmotorsport]

Financing is exactly the piece of the puzzle that's 'holding things up'. There simply isn't overwhelming confidence from lenders that there is a big market for expensive high rise condos mainly because it isn't a proven success here.

Majin - Not sure where you get the idea that these are less expensive projects, unless you mean compared to the arena. But that's apples and oranges. Or arenas and condos. These are projects that will cost in the hundreds of millions of dollars, and many banks are simply more cautious than ever after 2007/2008. You're just not going to see a flood of banks invest en mass for high rise residential here until the first project succeeds.

[travis bickle]

Originally Posted by ltsmotorsport

Financing is exactly the piece of the puzzle that's 'holding things up'. There simply isn't overwhelming confidence from lenders that there is a big market for expensive high rise condos mainly because it isn't a proven success here.

Majin - Not sure where you get the idea that these are less expensive projects, unless you mean compared to the arena. But that's apples and oranges. Or arenas and condos. These are projects that will cost in the hundreds of millions of dollars, and many banks are simply more cautious than ever after 2007/2008. You're just not going to see a flood of banks invest en mass for high rise residential here until the first project succeeds.

You sir... are absolutely correct. Sacramento is an unproven high-rise market. While getting the debt financing wouldn't be easy for a Sacramento high-rise residential project, getting the equity would be breathtakingly difficult. You would probably need a five-year disposition return of 30% or more to interest the equity markets. That is a figure extremely hard to show in Sacramento.

I'd guess rents of at least $3.00/sf are necessary. Can a 1000sf apartment get $3000 or more a month? That's the question the bankers are asking.

You're going to need a developer willing to put up a ton of his own money, or one who has a superb track record of success in emerging markets wiling to commit to downtown Sacramento.

The arena team may be that developer (or Sacramento Commons). If they can make a project work, then you may see more investors willing to risk their capital on the State Capital. Until then? Very unlikely.

[ltsmotorsport]

Which is why, with Sacramento Commons being "first in", a successful delivery for this project will help open up the market for these kinds of large projects in Sacramento.

[Majin]

More midrises....

http://www.bizjournals.com/sacrament...posed-for.html

[creamcityleo79]

Originally Posted by Majin

More midrises....

http://www.bizjournals.com/sacrament...posed-for.html

I like that! Considering the doldrums Sacramento was in during the recession and sloooow recovery, these are great! Keep building little things like this and the demand for downtown living/retail/restaurants will only grow.

[creamcityleo79]

HUGE!

Whole Foods to open new store in midtown Sacramento with apartments on top http://www.sacbee.com/2014/07/30/659...new-store.html

[Majin]

Doesn't even break ground until 2016

[LandofFrost]

I'm so happy they are doing something with that asinine, anachronistic parking structure. The renters are going to be in for a treat though come Friday and Saturday, living right next to the most hectic intersection in midtown, on the weekends.

[aufbau]

I was sort of pining for a Nugget Market to go there, but I guess Whole Foods is de rigueur for the city's ground zero of gentrification. Man, do I miss Nugget.

[enigma99a]

Originally Posted by Majin

More midrises....

http://www.bizjournals.com/sacrament...posed-for.html

And more rentals... When is home ownership coming? Oh wait, can't be done as it hasn't been done

[enigma99a]

Originally Posted by creamcityleo79

HUGE!

Whole Foods to open new store in midtown Sacramento with apartments on top http://www.sacbee.com/2014/07/30/659...new-store.html

yay more rental. +1 for WF

[Web]

Originally Posted by enigma99a

yay more rental. +1 for WF

says construction to begin in 2016......um 18 months at the earliest to start.

[ltsmotorsport]

Originally Posted by enigma99a

And more rentals... When is home ownership coming? Oh wait, can't be done as it hasn't been done

The Creamery is a for-sale project, although it is detached units. Also an odd comment in the article about there not being much of that in the central city...I hope they mean for-sale cause there is plenty of detached product on the grid.

http://www.bizjournals.com/sacrament...-underway.html

[ltsmotorsport]

Originally Posted by creamcityleo79

HUGE!

Whole Foods to open new store in midtown Sacramento with apartments on top http://www.sacbee.com/2014/07/30/659...new-store.html

Glad to hear this project is finally coming, but I agree with aufbau that a Nugget would have been nice too, being local and all.

The thing that annoys me about this story though is that between the Bee, KCRA, and Sac Biz Journal, I can't get a sense of what the project actually consists of in terms of stories, parking, etc. They all have different descriptions of the project. Anyone have the link to the City's applications tracker to get a better sense of how this will look?