Sacramento: 301 Capitol Mall: A New Plan for The Towers Site - Page 23

brandon12 · #**441** Posted **Jul 14, 2006, 8:48 PM**

Quote:

Originally Posted by TowerDistrict

Wow! That's much different than the last time i walked by. I think that was during the Jazz Jubilee. It looked like hell then. I'd be so antsy if I bought a place in the Towers. I'd probably be out there trying to frame it with some 2x4's.

I tried that, they kicked me out.

Also, You'd be amazed at the number of reasons I can create for me to pass by the job site.

Los_Lobo · #**442** Posted **Jul 14, 2006, 8:49 PM**

Quote:

Originally Posted by TowerDistrict

Wow! That's much different than the last time i walked by. I think that was during the Jazz Jubilee. It looked like hell then. I'd be so antsy if I bought a place in the Towers. I'd probably be out there trying to frame it with some 2x4's.

Believe me, if I thought it would help I would be out framing with 2x4's!

squintstopher · #**443** Posted **Jul 15, 2006, 5:10 PM**

I imagine that, if/when they do the I-5 decking, the value of the condos facing the river will skyrocket.

Los_Lobo · #**444** Posted **Jul 19, 2006, 1:39 PM**

Bob Shallit: Party just starting for Towers builder
By Bob Shallit -- Bee Columnist

Published 12:01 am PDT Wednesday, July 19, 2006
Story appeared in Business section, Page D1

Developer John Saca is blocking off part of the Capitol Mall for a day to celebrate the launch of his twin 54-story residential project.

A street party is on tap in downtown Sacramento on Thursday, a celebratory construction launch of what's being called one of the West's tallest residential structures.

Developer John Saca got city permits to block off Capitol Mall between Third and Fourth streets between 4 and 8 p.m., hired the retro rock band Cheeseballs and is inviting all comers to party down.

Starting next week, the first of about 2,400 piles will be driven for the 54-story twin-towers condo and hotel project, the first tangible sign that Saca's vision is becoming reality. At the same time, a new sales push begins to meet requirements set by the project's lender, Deutsche Bank.

The bank wants half of the Tower's 804 condo units sold before providing its $375 million loan. So far, about 300 people have put down nonrefundable deposits.

Isn't it risky to start building before receiving a construction loan? Not according to Saca, who is using his own money and a $100 million equity investment from CalPERS to fund the current site work.

"The buyers are there," he says. What's needed is to secure nonrefundable deposits from interested parties "and then find a few more."

The new sales push includes ads in Bay Area newspapers and the Wall Street Journal, a billboard on I-80 near Dixon, advertising banners locally, as well as Internet marketing -- all to promote a $500 million project that includes a 230-room InterContinental Hotel. The start of construction, Saca says, will prompt some potential buyers "to pull the trigger more quickly and get others to come out of the woodwork."

Part of the sales pitch is that buyers who make hard-money commitments now will get pre-construction discounts -- "smoking deals," says marketing director Tony Ammirato. Units currently start at $380,000 and go to more than $3 million for a standard penthouse. Once the project starts taking shape, Ammirato expects demand -- and pricing -- will rise.

brandon12 · #**445** Posted **Jul 19, 2006, 2:00 PM**

^Shallit mentioned 2400 piles. I wonder if he is right? We had heard 2,900 piles. But anyway, piledriving next week? That's excellent news. I would have thought there was still some further excavation required. I wonder if they will begin pile driving on one side of the site while they finish digging on the other?

Los_Lobo · #**446** Posted **Jul 19, 2006, 3:39 PM**

Quote:

Originally Posted by Los_Lobo

Bob Shallit: Party just starting for Towers builder
By Bob Shallit -- Bee Columnist

Published 12:01 am PDT Wednesday, July 19, 2006
Story appeared in Business section, Page D1

Developer John Saca is blocking off part of the Capitol Mall for a day to celebrate the launch of his twin 54-story residential project.

A street party is on tap in downtown Sacramento on Thursday, a celebratory construction launch of what's being called one of the West's tallest residential structures.

Developer John Saca got city permits to block off Capitol Mall between Third and Fourth streets between 4 and 8 p.m., hired the retro rock band Cheeseballs and is inviting all comers to party down.

Are any other forumers planning on attending this celebration on Thursday? It's open to the public and it would be fun to see some of you there.

snfenoc · #**447** Posted **Jul 19, 2006, 3:56 PM**

Is it surprising only 300 people have put down hard deposits? I am a bit deflated; I thought 50-60% of the units would be sold by now. It's probably no big deal, but it still makes me stop and think, hmmm...

COASTIE · #**448** Posted **Jul 19, 2006, 4:09 PM**

If anyone makes it out there it would be great to see some picts for those of us who can not make it there.

innov8 · #**449** Posted **Jul 19, 2006, 4:53 PM**

Quote:

Originally Posted by snfenoc

Is it surprising only 300 people have put down hard deposits? I am a bit deflated; I thought 50-60% of the units would be sold by now. It's probably no big deal, but it still makes me stop and think, hmmm...

That suprised me too... no worries tho, Thursday should be a lot of fun

urban_encounter · #**450** Posted **Jul 19, 2006, 7:00 PM**

The fact that 300 units have been sold shouldn't be seen as anything but a an excellent first step. Especially given that Aura also did very well. Saca points out that they have the buyers, but just haven't inked them to contract. I recall them pointing out that they have 5,000 people pre qualified with their preferred lenders... Sales will be ongoing just as if they had built this project in any city on speculation. Besides 300 non-refundable deposits, in addtion to the hotel, means one tower is basically sold out.

SacTownAndy · #**451** Posted **Jul 19, 2006, 7:13 PM**

^ And also- I know personally that I would be more apt to throw down cash if I knew the building was actually under construction. I agree with the article that it will be a much easier sell once they actually break ground and potential buyers actually have something tangilble to see going up.

brandon12 · #**452** Posted **Jul 19, 2006, 9:27 PM**

About the 300 units referenced: I think there may be some misinformation out there. Depending on what source is right, there could be a worst-case scenario and a best case scenario. I believe each are equally likely to be the case, but even the worst-case scenario is not bad at all. In fact, I think it's quite impressive:
Best-Case Scenario: I was told several weeks ago that at that time they were at 300 units sold. It's possible that that was an acurate statement and at this time, two weeks later, they are at something more than 300, although likely less than 350. For instance, if they were in fact at 300 two weeks ago and now they are at 340, Shallit may have just rounded to 300. If that's the case, then the Towers is already more than 40% spoken for before ground-breaking. Quite impressive.
Wors-Case Scenario: Two weeks ago, when I was told 300 units sold, that number was exagerated or rounded up. In this case, they may very well be just now at 300 units sold. If this is true, then they are at about 35% sold out. Still quite good.
Regardless, Saca has $100M of CALPERS' money to spend before he has to tap the Deutche money. I would imagine that allows him to continue construction through the end of 2006 before he needs to get to 400 units (or 50%)

So for those of us who don't have a financial stake in the project and just want to see the buildings go up as part of the larger downtown redevelopment, don't worry. This project is a SURE THING.

For those of us with a financial state in the project, maybe they won't double their money before they even move in, but I don't think anyone expected that. But I do expect the building will be more or less 100% sold by the time it's completely finished.
Imagine when this thing is 550 feet in the air and people who aren't as intimately knowledgeable about these projects (imagine that- people who have lives that don't allow them to spend all of their free time on the forum) see this building going up. If they're new to the area, preoccupied with life's other concerns or just have recently changed their mind about what their idea of a dream home is, when they see the building going up, it will trigger the notion that they want to live there.

brandon12 · #**453** Posted **Jul 20, 2006, 5:14 AM**

Fox40 just reported that the project has sold "half" its units. I doubt that's true, just repeating what I heard.

pseudolus · #**454** Posted **Jul 20, 2006, 5:19 AM**

How big are these deposits? When is full payment due?

Is it possible that speculators are treating these as if they were call options? That is, they are paying their deposit against the chance of appreciation with the intent of just walking away if there is no appreciation?

Is it possible the developer sees himself as selling call options?

brandon12 · #**455** Posted **Jul 20, 2006, 5:21 AM**

I don't know how to answer that except that the deposits are nonrefundable and are equal to 10% of the total sales price of the unit, so they range from about $40,000 to well over $100,000.

innov8 · #**456** Posted **Jul 20, 2006, 8:11 PM**

Today’s street party should be fun...

They have raised two big red balloons down at the construction site for today’s
the street party. Both balloons look like they are 625' in height and all
the way up the string are smaller blue balloons indicating each floor.

I was walking down K & L Street between 10th & 12th street and I could see
these balloons floating... we have all seen many renderings of the towers in the
skyline, but for me to actually see those balloons in the air where the towers will
stand made the vision that much more real. Walking down K Street and watching
them loft in the air gave me a quick shiver... all most like "no f*cking way".

brandon12 · #**457** Posted **Jul 20, 2006, 8:17 PM**

I may pee my pants at the sight of that.

foxmtbr · #**458** Posted **Jul 20, 2006, 8:19 PM**

That sounds insane! Imagine being the lucky guy who had to blow up all the balloons...

enigma99a · #**459** Posted **Jul 20, 2006, 8:49 PM**

You can see one of the 625' balloons from the KCRA webcam.

sugit · #**460** Posted **Jul 20, 2006, 8:53 PM**

Man, I so wish I could be there today. My wife got on the damn VIP list too!!

Pictures PLEASE!!