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

[brandon12]

Originally Posted by Majin

I hope youre right, its been over a month and not one bit of news. Honestly if I had put down money on a unit i'd be VERY nervous right now... I wonder how many buyers have canceled in the past two months.

I've never understood why so many think that people who put deposits down should be nervous. Why would anybody be nervous? what's the worst that can happen? You put your money down and the project doesn't get built and so you get your deposit plus interest back? That is something to be nervous about? I have many things in my life to be nervous about; that scenario is not one of them. Please explain why it would be for you.

[tuy]

I think that there is a chance that we won't see both towers going up at the same rate. Look for the first tower to be close to half built before the second tower gets off the ground. This will give Sacca some revenue from the first units before he finishes the second tower.

[innov8]

Originally Posted by tuy

I think that there is a chance that we won't see both towers going up at the same rate. Look for the first tower to be close to half built before the second tower gets off the ground. This will give Sacca some revenue from the first units before he finishes the second tower.

Very few twin tower projects ever rise at the exact same time. I would think
they would rise at a close rate so they can meet the new Towers Extension Addendum.
I think the new date is the same for everyone at this point, before today it was
two years from the purchase date.

[POGO]

That addendum looks like a like desperate gasp by Saca to me. He didn't say anything in his letter about his lender requiring less than 50% sold now. And more than likely a lot of buyers will not sign the addendum to extend his time to perform, putting him farther, not closer, to the magic 50% mark he needs to hit to get his construction financing released.

Under the best of scenarios, buyers are looking at a move-in date of 2011 right now. That's a long time to wait and have your deposit money tied up. There is a huge lost opportunity cost for everyone that has their deposit in escrow earning a measly 4% (or whatever they are paying). You could get a better return than that just on T-bills. Or a buyer could use that money and buy in a project that actually already exists, have some place to live, and maybe see some appreciation in the value of their REAL asset. I don't see this project happening as long as John Saca is involved.

Flame on dudes.

[vicinsac]

I don't mind waiting a few more years and I don't need any cash right now. I don't mind if it sits their earning little interest.

By the time they get built the price will be a lot greater than what we locked the price in back in 2005.
Plus this gives me a few more years to take care of a couple things before I'm ready to move into downtown Sac.


I think this is a great investment, even though I want to live in it for at least a few years . About a year ago a lady offered me to sign over my contract to her paying me 150k over what I locked my price to be in the contract. 100k of it was in cash. It didn't even take me a second to refuse the offer and I never had any doubts about it even at the low points of this project.

This thing will be build. Those of us who don't mind being patient will benefit.

[TowerDistrict]

there are people on these boards that will waste hours trying to convince
themselves they know what's best for buyers like you, vicinsac.

[mechanico]

Originally Posted by vicinsac

About a year ago a lady offered me to sign over my contract to her paying me 150k over what I locked my price to be in the contract. 100k of it was in cash. It didn't even take me a second to refuse the offer and I never had any doubts about it even at the low points of this project.

Why would anyone do that when most of the units are still available and nothing had been built?

[vicinsac]

Originally Posted by mechanico

Why would anyone do that when most of the units are still available and nothing had been built?

Well... Your right, there are units available towards the bottom of the building but not on any of the higher floors, where most people want to be.

[Phillip]

I've set aside funds to purchase charcoal briquets and a crow should that prove necessary.

[brandon12]

^That's funny Phillip.

[mechanico]

Originally Posted by vicinsac

Well... Your right, there are units available towards the bottom of the building but not on any of the higher floors, where most people want to be.

Wow! I've always thought it was the complete opposite case. One would think that the more affordable units would sell first. Does anyone have any sales charts to support this?

[innov8]

Originally Posted by mechanico

Wow! I've always thought it was the complete opposite case. One would think that the more affordable units would sell first. Does anyone have any sales charts to support this?

Vicinsac is right. If you really want to find out, you can go into the sales office
and simply ask what's still available. Also, back when the towers were selling
phase one and two, the prices per square foot were much less.

[mechanico]

Originally Posted by innov8

back when the towers were selling
phase one and two, the prices per square foot were much less.

How much less?

[innov8]

mechanico, to give you an idea of how prices would move up, this was brandons
experience at the first sales event in July of 2005.

07-20-2005, 05:26 PM
brandon12
Registered User Join Date: Jul 2005
Posts: 878

a little more detail about the sales event. On Friday, VIPs, high rollers and employees of the development and sales teams were invited to purchase units. When I found out about this, I wasn't too excited. It doesn't seem right to let sales reps get first dibs on condos. But anyway, that's what they did.
Then on Saturday, the general public got their first chance. It was predetermined that only 250 units would be available. (although, at the time, I was under the impression that the entire first building was available). From what I know, prices were not increasing from day to day during the sales event, but from one group of 25 buyers to the next.

After we signed the papers and handed over the deposit check, we were shown to a room where they offered us champagne, chocolate-covered strawberries, massages, etc. It was really nice. After hanging out in this "lounge for a little less than an hour, I got curious about what was still left to purchase, so I kinda "snuck" back in the sales room. Now, I don't know if it was because I was a bit nervous about getting caught, so I didn't have a lot of time to stare at the price board, but it definitely looked like prices had gone up a lot for the group right behind me. I only had about 20 seconds to stare at the price board before my sales associate told me I needed to leave.

By Sunday morning, the cheapest place left was probably in the mid 4s.


http://forum.skyscraperpage.com/showthread.php?t=58694&page=33

[vicinsac]

Looks like Calpers is settling just to get their initial investment back without interest and get out of the deal.

What choice does calpers has than to get out? If they foreclose Calpers loses their initial investment too. Thats why Calpers is letting it go. John and the person (Joe) that owns the loan for the lot are working together

Joe, the person who bought the note that secures the land that the towers will sit on will help pay off the construction liens. I also know that Joe bought all of the units on the 51st floor.

Thats all I know for now.

[Los_Lobo]

Originally Posted by vicinsac

Looks like Calpers is settling just to get their initial investment back without interest and get out of the deal.

What choice does calpers has than to get out? If they foreclose Calpers loses their initial investment too. Thats why Calpers is letting it go. John and the person (Joe) that owns the loan for the lot are working together

Joe, the person who bought the note that secures the land that the towers will sit on will help pay off the construction liens. I also know that Joe bought all of the units on the 51st floor.

Thats all I know for now.

Joe sounds like a good friend to have. Thanks for the info.

[downtownserg89]

hmm, what's joe look like? oh i'm just curious..

[vicinsac]

Its Joe Mohammed. He owns a lot of properties and buildings in downtown. Specificly on K street.

The local media has been contacting him like crazy and he's been declining to make any statements.

I know he is willing to help pay off the lien holders while Saca secures financing with other investors.

[rtgeisreit]

Originally Posted by vicinsac

Its Joe Mohammed. He owns a lot of properties and buildings in downtown. Specificly on K street.

The local media has been contacting him like crazy and he's been declining to make any statements.

I know he is willing to help pay off the lien holders while Saca secures financing with other investors.

I think you might be confusing Joe Mohammed with Mo Mohanna. Mo owns a number of K Street properties.

[Phillip]

Originally Posted by vicinsac

Looks like Calpers is settling just to get their initial investment back without interest and get out of the deal.

Who would be paying CalPERS $25 million to exit?