Sacramento Proposal/Approval/Construction Thread - III

[otnemarcaS]

U.S. Bank Tower construction off to good start
By Jon Ortiz - Bee Staff Writer
Published 8:10 pm PDT Thursday, May 3, 2007

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Construction workers enjoy a free lunch in celebration of the topping of the structural height of the new U.S. Bank Tower in downtown Sacramento.
Sacramento Bee/Autumn Cruz


Sacramento's newest high-rise entered its next construction phase Thursday as ironworkers made their final welds to 40 miles of steel framing on the Bank Tower on Capitol Mall.

The 25-story office building leads a pack of tall structures planned for downtown Sacramento. How many of those other towers will be built remains unclear.

US Bank Tower, which is being built by local developer David Taylor, and three other high-rise projects in various stages along Capitol Mall illustrate the challenges that go with constructing buildings that can change a city's skyline.


Taylor's efforts appear off to a good start, despite his asking up to $4 per square foot for rent, a dollar more than any other Capitol Mall landlord. Nearly half the space for the building at 621 Capitol Mall is leased to four businesses: Downey Brand, one of the area's biggest law firms; the California Restaurant Association trade group; the Palmer Team, a marquee commercial real estate company; and the building's nameplate tenant, US Bank.

US Bank Tower is further along than the other three high-rise projects on Capitol Mall.

[joninsac]

"U.S. Bank Tower construction off to a good start"

Gotta love the Bee. Nothing gets by them. I guess they were unaware of 621's construction when it was only 300 feet tall or so.

"US Bank Tower is further along than the other three high-rise projects on Capitol Mall."

No shit?

[foxmtbr]

^

[enigma99a]

Originally Posted by joninsac

"U.S. Bank Tower construction off to a good start"

Gotta love the Bee. Nothing gets by them. I guess they were unaware of 621's construction when it was only 300 feet tall or so.

"US Bank Tower is further along than the other three high-rise projects on Capitol Mall."

No shit?

actually the Bee didn't notice it until it was about 400ft

[goldcntry]

I knew I cancelled my Bee subscription for a reason...

[otnemarcaS]

I guess the Bee updated the story -


Towering questions
Planned downtown high-rises show progress - or lack of it
By Jon Ortiz - Bee Staff Writer
Published 12:00 am PDT Friday, May 4, 2007
Story appeared in BUSINESS section, Page D1

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Sacramento's newest high-rise entered its next construction phase Thursday as ironworkers made their final welds to 40 miles of steel framing on the Bank Tower on Capitol Mall.

The 25-story office building leads a pack of tall structures planned for downtown Sacramento. How many of those other towers will be built remains unclear.

US Bank Tower, which is being built by local developer David Taylor, and three other high-rise projects in various stages along Capitol Mall illustrate the challenges that go with constructing buildings that can change a city's skyline.

Only Taylor's building started without a relative hitch. One of the neighboring projects sparked an outcry over its look and was redesigned before construction started. Two others are still searching for financing.

Taylor's efforts appear off to a good start, despite his asking up to $4 per square foot for rent, a dollar more than any other Capitol Mall landlord. Nearly half the space for the building at 621 Capitol Mall is leased to four businesses: Downey Brand, one of the area's biggest law firms; the California Restaurant Association trade group; the Palmer Team, a marquee commercial real estate company; and the building's nameplate tenant, US Bank.

"It's about perceived status and marketing," said TRI Commercial office broker Steve Park. "It's about a business being able to say, 'We're in one of the top buildings in Sacramento.' People will pay a little more for that."

US Bank Tower is further along than the other three high-rise projects on Capitol Mall.

Across the street, Tsakopoulos Investments is putting up a 25- story office building at 500 Capitol Mall.

Angelo G. Tsakopoulos originally proposed a modern tower with a replica of the Parthenon on the top. City officials balked at the design. Tsakopoulos last year exchanged it for a more conventional look.

Workers Thursday were preparing the site at Capitol Mall and Fifth Street. A sign at the site indicates that the 433,000- square-foot building will open in the first quarter of 2009.

Taylor's and Tsakopoulos' buildings will pump about 800,000 square feet of high-end office space into the Sacramento market, Park said, enough to "shock" the market and drive down lease rates for a while.

"After about six months I think you'll see a rebound as some businesses in outlying areas like Natomas start trickling in to downtown," Park said. "People who couldn't afford to be there before might find that they suddenly can."

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.

Three blocks west, all is quiet where John Saca's $550 million Towers project is planned between Third and Fourth streets. The foundation work on the ambitious 53-story, twin tower, hotel-retail-condo complex abruptly stopped last fall.

Last month Saca said he reached an agreement to buy out the California Public Employees' Retirement System, his largest investment partner. To close the deal, he must come up with about $25 million by May 25 to reimburse the state pension fund for what has been spent.

The Sacramento-based developer also needs more money from other investors and lenders to restart the project. He has taken deposits on about half of the 800 condos up for sale.

Saca did not return a telephone call seeking comment. Mark Cordano of Sacramento-based Cordano Co. said his company has put its Towers retail marketing efforts "on hold" for now.

Meanwhile, the whirring, pounding, buzzing sounds of construction continued Thursday on the $130 million US Bank Tower. Inside the building's on-site sales office, Taylor pondered a question: What is the hardest part of building a skyscraper?

His answer: money.

"It's getting the leasing and financing you need," he said. "The construction issues are very, very important, but I don't have to personally handle those."

[ltsmotorsport]

Originally Posted by otnemarcaS

Only Taylor's building started without a relative hitch.

Also not true.

[innov8]

It's amazing that the Bee doe's not tape into this wealth of knowledge right
here on SSP.com. On the graph, Aura's now 455' and the Towers are at 600’

[joninsac]

^ Hmmm. The graph cites SSP and "Bee research" as sources. Since it has been scientifically proven that the Bee does no research, I wonder where the height numbers came from.

[innov8]

Originally Posted by joninsac

^ Hmmm. The graph cites SSP and "Bee research" as sources. Since it has been scientifically proven that the Bee does no research, I wonder where the height numbers came from.

[urban_encounter]

Originally Posted by otnemarcaS

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.

Interesting to hear that an extension wasn't granted and wont be until Taylor talks with Nassi's (so called) lenders and equity partners..

I support Taylor 100% and frankly at some point you just have to say that enough is enough.

Not meaning to be negative, but I think we can safely turn the lights out on Aura.

[TowerDistrict]

I know people like Nassi are wealthy people, spending other people's money - but how do they justify spending the kind of money they have marketing this project - and then not follow through when and where it counts most? this project just blows my mind... i'm sure i don't know the whole story, but it's confounding to think of how Aura went from 80% sold and ready for construction, to a silly distraction in a matter of months.

[aufbau]

Originally Posted by joninsac

^ Hmmm. The graph cites SSP and "Bee research" as sources. Since it has been scientifically proven that the Bee does no research, I wonder where the height numbers came from.

Who knows where those numbers came from, but what do you expect from a newspaper that reports on a building's "good start" when one can easily see the topped out structure from their offices on 21st street?

I'm glad the bee squeezed out another gem today to keep this recently slow forum going.

[urban_encounter]

Originally Posted by TowerDistrict

I know people like Nassi are wealthy people, spending other people's money - but how do they justify spending the kind of money they have marketing this project - and then not follow through when and where it counts most? this project just blows my mind... i'm sure i don't know the whole story, but it's confounding to think of how Aura went from 80% sold and ready for construction, to a silly distraction in a matter of months.

I was thinking exactly the same thing today.

I'm amazed that a building can be 65, 70, 75 or as you noted 80% pre sold (depending on which is the most accurate sales numbers) and still not be able to get financing.

Regardless of whether or not this project is a first for Sacramento, the risk doesn't get much lower than that, unless your talking about a building being 100% pre sold prior to the first shovel of dirt being turned..

In October it will be two years since city final approval of this project.

Two Years!!!

I'm not saying that Aura definitely wont be constructed.

But at this point, I will be very surprised if it does get built.

[enigma99a]

Luxury highrise condos CAN'T be done in Sac. After all, it's never been done before right?

[innov8]

621CM


CalSTRS crane looking west down J Street.


500CM... I post the whole screw piles process over in the highrise construction section as well as other photos from the projects above.

Highrise construction: http://forum.skyscraperpage.com/forumdisplay.php?f=103

[urban_encounter]

Originally Posted by enigma99a

Luxury highrise condos CAN'T be done in Sac. After all, it's never been done before right?

Unfortunately it's beginning to look that way.

I'm still hopeful that John Saca will be able to bring in a motivated equity partner with deep pockets for his project. Although who knows how many people signed there addendums?

Unfortunately the banks seem to be hesitant to fund these projects completely..


I'm just stunned that the long delay over Aura, boils down to a $14 million dollars mezzanine loan.


(or so the media reports)

[downtownserg89]

wow, 621 cm is really making progress.

[Phillip]

Originally Posted by enigma99a

Luxury highrise condos CAN'T be done in Sac. After all, it's never been done before right?

I'm surprised nobody has tried to build a 20 story luxury tower in Sac. If something like that had been proposed 2 or 3 years ago instead of Aura and CapTowers (not in competition with) I think it would have sold out and maybe even be nearing completion. But I know some folks here don't consider 20 stories a highrise.

[foxmtbr]

^ I'll propose one in 10 years, after I become an architect.



... I hope to God the market grows between now and then...