SACRAMENTO | The Metropolitan | 420 FT / 128 M | 40 FLOORS

[urban_encounter]

"The Metropolitan"
40 story 420' tower
350 residential units
13,000 sf. ground floor retail
Location: 10 & J street
Developer: Saca Development, LLC
Architect: Kwan Henmi
Status: Pending before the Design Commission















'The Metropolitan will accommodate 320 residential units with amenities such as private balconies, a rooftop pool, fitness and recreation rooms, as well as landscape and open space terrace areas. The ground floor will consist of 13,000 commercial/retail sq. ft. facing both 10th and J Street.'

http://www.saca.biz/index_files/Page521.htm

[mechanico]

Downsized high-rise is developer's comeback bid
Saca, whose Towers project failed, hopes to rebuild image.
By Mary Lynne Vellinga - Bee Staff Writer
Last Updated 1:43 am PDT Tuesday, June 26, 2007
Story appeared in METRO section, Page B1

Print | E-Mail | Comments (19)| Digg it | del.icio.us

John Saca is reaching to the sky for redemption.

The developer says his reputation was tarnished by the failure of his audacious quest to build the tallest residential project on the West Coast: two 53-story condominium and hotel towers on the Capitol Mall.

Saca, 40, thinks the best way to undo the damage is to succeed in erecting a different, albeit smaller, high-rise condominium tower at 10th and J streets. At 40 stories, this new project still would top anything on the Sacramento skyline.

"It's less about business, and more about trying to redeem myself and show people (the Towers) really wasn't my fault," he said about his plans for the new project, dubbed the Metropolitan.

"In my mind, a man is judged not by how hard he can get hit, but by how fast he gets up after he gets hit," he added. "I'm stronger than I was a month ago."

Saca's determination has won him a measure of respect in Sacramento's real estate community, some of whose members initially voiced skepticism that a shopping center developer with no high-rise experience could pull off such an ambitious project.

"The world needs guys like him, so God bless him," said Charles DeLoney, senior vice president of brokerage firm CB Richard Ellis. "It's a real tough market right now, and it takes a lot of courage to be out there doing this kind of thing.

"But he's a visionary who sees beyond the current difficult market conditions. He believes in the town, and he puts his money where his heart is."

Saca acquired the shuttered collection of buildings on J Street across from Cesar E. Chavez Plaza for $7.6 million in the heady days of 2005, when downtown was abuzz with talk of high-rise condo living.

He had planned to build on the J Street property when he finished the Towers. Instead, he said, he'll be pressing ahead with it right away. Last week, the project went before the city's Design Commission for comment. This week it's before the Planning Commission. Saca said he hopes to have city approval within 60 days.

The Metropolitan is designed to soar 39 stories and contain 330 condo units. But Saca plans to add another story and is exploring the possibility of making part of the tower a hotel, which would reduce the number of condos he needs to sell, city officials said.

Saca said he wants to capitalize on the momentum remaining from the Towers, which had taken deposits from about 400 buyers before construction stopped in February.

The developer said he has been barraged with e-mails from supporters in the two weeks since he announced he would sell his interest in the Towers site to his equity partner, the California Public Employees' Retirement System.

This news came after months of wrangling between Saca and CalPERS, which had cut off funds to the project amid concerns about cost overruns.

The pension fund gave Saca a chance to pay off its $25 million investment and take control, but he couldn't come up with the $60 million required to do this and satisfy the project's debts by the deadline.

During this protracted tussle, construction stopped, contractors went unpaid, and the Saca-CalPERS partnership defaulted on the note used to buy the land in the first place.

Those are black marks that will be hard to erase, Saca said. "In my industry, it's like a bankruptcy; it's about as bad as you can get."

Saca said the Towers experience taught him one important lesson: Never give a financial partner control of your destiny.

In the Saca-CalPERS duet, the pension fund giant's voice dominated. It had committed $100 million in equity.

When pension fund managers pulled the plug, the partnership no longer had the money to pay contractors.

CalPERS is now exploring the possibility of building a scaled-down condominium tower on the Capitol Mall site.

In a phone interview last week, Saca said the Towers took a significant personal toll.

"I lost a tremendous amount of money, well into the seven figures," he said. "And I've lost a tremendous amount of time. But that's not what's disheartening. What's disheartening was that I thought the Towers project would be a major catalyst for the Sacramento region."

While the Towers would have cost more than $600 million to build, Saca said the Metropolitan likely would have a budget of less than $200 million. Saca said he owns the half block at 10th and J free and clear, and has enough money to contribute the needed equity without a partner.

City officials wish him well.

"After what happened with the Towers, I think it's very important that John get back in the saddle and move forward with another project," said City Manager Ray Kerridge.

Kerridge noted that there are a number of significant housing developments in the works for downtown.

While the slump in the housing market might mean they don't get built right away, having them in the pipeline puts Sacramento in a better position to jump on the next housing cycle, he said.

"We're going to be explosive at the start of the next cycle, and I think that's what's going to make the difference."

[mechanico]

Are any of you refugee Towers buyers going to buy into this one?

[NYC2ATX]

this is a nice tower, a little flashy, something Sac-town could use....and for once, its address isn't ### capitol mall.

[BANKofMANHATTAN]

What's flashy about it??

It's all kinds of boring.

some nice in-fill though...

[urban_encounter]

Originally Posted by StatenIslander237

for once, its address isn't ### capitol mall.

Good point!

[Pistola916]

Decent design, but it's much needed. It kinda looks like a cross between the sheraton and esquire building. In the SacBee article it mention that this building will dwarf anything in the skyline. Um.... It won't even be the tallest building in the city, but I think they mean floor-wise.

[KevinFromTexas]

Cool design. I like it.

Originally Posted by urban_encounter

Good point!

Hey, there ain't nothin' wrong with Capital cities having Capitol addresses.

Sometime next year Austin will have a new tallest that will NOT be on Congress Avenue. It'll be the first time in 36 years that one of our tallest buildings hasn't had a Congress address, (the street the Texas Capitol sits on, and our downtown's "main street"). The first tallest building of our's to not be on Congress was the Dobie Center back in 1972, and that was the first building in Austin to hold the title of the city's tallest to not be on Congress Avenue. Of course, there's atleast 2 other buildings being proposed on Congress that will easily be the tallest in town for years to come. So it won't last long.

[ltsmotorsport]

So I'm wondering now; the old design looked more brown in color, while these newer renderings are definitely blueish. Is that the way they're going with it?

[phillyskyline]

The new colors have purple highlights with distinct black balonies - looks like the colors of the Kings, hmmm...

[JeffZurn]

I think it looks just fine, lets just hope it can get through the EIR quickly. Its good to see Saca getting right back on the horse again.

[ShaneOrton]

I'm so glad to see his new design I was so depressed to hear he wasn't gonna make the Towers but I'm really looking forward to see the Metropolitan being built hopefully it all works out for Saca he is the best man Sacramento could have. im a little disappointed that my sister and her husband wont be moving into the towers, but hopefully they move to the metropolitan.

[innov8]

Two developers vying to lure hotel chain to Sacramento
By Jon Ortiz of The Sacramento Bee
Wednesday, August 29, 2007
http://www.sacbee.com/749/story/350687.html

Two developers with a history of competition are in talks with InterContinental Hotels Inc. to partner with them on rival condo-hotel towers each wants to build in downtown Sacramento.

Denver-based developer Craig Nassi said that he is "close" to signing a deal with the luxury hotelier for Epic, a high-rise he envisions for 12th and I streets.

Local developer John Saca didn't return calls seeking comment about how InterContinental might fit into his 10th and J streets tower, The Metropolitan, but Sacramento business observers confirmed he has talked to the British firm about a deal.

"What we're hearing is that John has spoken with them," said Michael Ault, executive director of the Downtown Sacramento Partnership. Steve Hammond, president and CEO of the city's Convention & Visitors Bureau also said that Saca, who signed Intercontinental to his Towers condo project on Capitol Mall before it failed earlier this year, hopes to renew his partnership with the company.

John Lee, InterContinental's western region vice president, declined to comment about either project. "Sacramento is a target market for us," he said, "and we'd love to be in the city."

The InterContinental Hotels & Resorts chain is part of the larger InterContinental Hotels Group PLC based in Berkshire, England. It operates the InterContinental Mark Hopkins hotel in San Francisco and owns the Holiday Inn and Holiday Inn Express chains, among others.

[JeffZurn]

Well if Epic ever goes, it looks like it will be the same battle that Nassi and Saca had back on Capitol Mall. I have a pretty good feeling we won't be seeing Epic any time soon.

[innov8]

The Planning Commission approved the Metropolitian on Oct. 25th and the project has
all the entitlements needed accept for Design Review approval which is tentatively
scheduled for Design Commission on November 29. After Design Commission
approval, the project could submit for building permits. The permits approved
on October 25, 2007 are valid for three years.

If the tower goes with hotel and condos, the new height would be 435'/

[JeffZurn]

^ This is great news, nice to see something finally making progress.

[mello]

I love John Saca, what a rad name: "the names Saca, John Saca"

Damn that has a fucken bitchin ring to it eh

[urban_encounter]

Originally Posted by mello

I love John Saca, what a rad name: "the names Saca, John Saca"

Damn that has a fucken bitchin ring to it eh

Especially when he's trying to establish himself as a major developer in Sacamento. (I meant Sacramento)

[Dieler]

Originally Posted by innov8

The Planning Commission approved the Metropolitian on Oct. 25th and the project has all the entitlements needed accept for Design Review approval which is tentatively scheduled for Design Commission on November 29.

Anyone hear the outcome of this design approval meeting?

[innov8]

Looks like it has been continued to January 16, 2008. Intent to approve
the project design is subject to meeting conditions and report back on the
Commission comments.