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

[kryptos]

hopefully whatever it is that going to built, its height surpasses any current highrise in sacramento

[arod74]

Originally Posted by innov8

CalPERS takes over Towers high-rise project
By Jon Ortiz of The Sacramento Bee
Tuesday, June 12, 2007

CalPERS is tapping Los Angles-based developer CIM Group to evaluate and develop another high-rise project at the location that is likely to include a hotel and some condominiums, though not the 400 units Saca had planned for his project (800 right?). The evaluation process is expected to take at least 18 months.

I wonder what additional info the Bee has to include this in their story? Or is it just speculation based on CIM's project track record?

[mechanico]

Originally Posted by urban_encounter

The market wont need to be as red hot as it was a couple of years ago and if anything what your seeing right now has more to do with the market correcting itself. The forclosures are a result of people buying in a hot market and signing bad deals. Granted it will increase the stock of exisitng family housing.

Those that felt the "wealth effect" and believed their equity was money in the bank to be withdrawn and played with, or thought of as savings enabling them to spend more recklessly are now burried in debt. Debt levels have not been this high since the depression, not that we are facing a depression.

But few people expect Sacramento's housing market to return to earleir levels.

They don't want to believe it. The local economy simply can't support current levels even with bay area transplants.

The four county region is still expecting between 10,000 and 11,000 new housing permits to be issued this year. Not too shabby.

I encourage you to drive out to Natomas where you'll find for sale signs on most every street (many with Foreclosure on them) and a sea of 1000's of lots, ready to build. Pay attention to the number of McMansions with dead lawns. I think we are in for one hell of a correction. I'm not in the sky is falling camp but this feels like 2001 all over again.

What does this mean for this project.....Scratch everything luxury, and or innovative about it. The riskiest things you can build right now are condos.

[SacTownAndy]

A few interesting snippets from News10.net:

The pension fund said it remains committed to an "iconic project."

Saca sent a letter to nearly 400 condo buyers telling them their deposits are being refunded. "It is with great humility and disappointment that I write this letter," Saca said.

CalPERS confirmed the project will be redesigned, but spokesman Brad Pacheco promised the new plan will be "iconic in nature."

[What is a Rivercat?]

from the Bee comments:



"Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it? For if he lays the foundation and is not able to finish it, everyone who sees it will ridicule him" - Luke 14:28-29

[mechanico]

^yes, this is not a new story.

[Phillip]

Does CalPERS buying out Saca also mean they bought the $20 million note on the land held by Saca's friend Mohammed? CalPERS/CIM has to own the land to build there, yes?

I wonder if CalPERS paid $20 million for the note or got it at some discount?

[mechanico]

Mohammed did not take action. I assume Calpers simply needs to pay off the loan.

[sugit]

Saca's letter to buyers...

http://www.news10.net/news/pdf/saca-letter.pdf

"Although the Towers on Capitol Mall will not be constructed, I have not and will not abandon my vision or efforts to build a high-rise in Downtown Sacramento in the future. I give my commitement that very soon I will present to you another high-rise project that will make our shared dream and vision into a reality"


__________


CalPERS Takes Over Towers Project
Written by George Warren, Reporter
CalPERS is taking over the stalled Towers on Capitol Mall project from developer John Saca. The public pension fund said it remains committed to an "iconic" project.

CalPERS confirmed Los Angeles-based CIM Group will now be the lead developer.

The original project as proposed by Saca would have brought twin 54-story hotel and condominium towers to the 300 block of Capitol Mall.

Facing rising costs, construction stalled in the beginning of the year and the partnership defaulted on the mortgage in February.

Saca spent several months trying to arrange a buyout of CalPERS, but in the end it was Saca getting the buyout.

This week, Saca sent a letter to 395 condo buyers telling them their deposits are being refunded.

"It's extremely disappointing to me," Saca told News10. "It's not the money I lost or the time. It's letting the community down."

CalPERS confirmed the project will be redesigned. Spokesman Brad Pacheco promised the new plan will be "iconic in nature," but will almost certainly be smaller.

The CIM Group will have eighteen months to come up with a new proposal for the site.

CalPERS will pay off the mortgage on the property and millions of dollars in liens filed by creditors.

Saca isn't spending time licking his wounds. He said his family is planning a 40-story mixed use high-rise on property it owns at 10th and J Streets.

[Majin]

Damn has there been any good new lately? Living in downtown the past year sure has been depressing watching every residential project go down in flames.

[aufbau]

395 units sold? yeah, what a risky market Sacramento is

But at least he's young and resilient, I'm sure he'll still leave a significant mark on our skyline. Just not as soon and where we would have liked.

[Majin]

Originally Posted by aufbau

395 units sold? yeah, what a risky market Sacramento is

Yeah seriously.

I'm not quite sure what is with the crazy requirements are to get loans out to developers. 395 units sold before the foundation work is complete looks like a pretty healthy market to me.

I hate how there are so many reports saying "we aren't ready" when all indications point in the other direction.

Not saying in any way that Saca didn't have problems with underestimating costs, thats probably what killed the project (not the market), but smaller projects such as Aura (or even epic) should have no problem getting buyers.

The reason why Aura probably isn't completely sold is people don't want to throw their money into a project with such a flakely track record. I mean, come on, if you were looking to buy (as I am within the next few months or so), would you put money down on a project that was "going break groud within the next few weeks" or one that was currently working on the 20th floor? When (if) Aura actually starts construction I'm sure we'll see a lot of buyers come foward and the rest of the building will fill pretty quick.

[bugsy]

CIM Group is currently building the first of two towers in the Central Place project in San Jose. They've already poured the 11th floor, despite not having opened a sales office or begun sales of any kind. (Unfortunately, flight path restrictions at nearby San Jose Int'l restrict most downtown buildings to around 23 stories.)





The larger lower floors will contain ground-level retail and a parking garage. (The "hole" on top of the parking garage is the swimming pool.)

The long side of the project is E. San Fernando St. The short (tree-lined) side of the project is S. 2nd St, which also contains the southbound transit mall for VTA buses and light rail.

[Majin]

^^Those kind of buildings belong in Natomas not 301CM.

[ozone]

CIM Group is a private equity real estate investor specializing in high-density urban communities. They are not an architectual firm. And when CalPERS says they'll propose something iconic I have to believe them. They must know that the city is not going to be happy with anything less.

I know some of you have complained about the look of CIM's 800 J Street. But you might consider that a lot of their developments are not as architecturally exciting in order to cut costs so they are able to continue to invest in risky, untested urban areas with higher costs. Besides a lot of CIM's properties are rehabs and I would love it if they got even more involved in Sacramento-there are lots of small old hotels downtown that would make nice apartments or 'boutique' hotels. If this project and the K Street project are successful then I think that will just encourage CIM more to invest in Sacramento.

[markie1]

www.waterviewresidences.com


This is an acceptable substitution in my estimation. CIM and CalPers could definitely mimic this project at 301CM in my book.

[petescafe]

Waterview looks bland enough for Sacramento.

I hope it's more distinct than that.

[innov8]

Originally Posted by petescafe

Waterview looks bland enough for Sacramento.

I hope it's more distinct than that.

I agree, the Waterview and the Central Place project in San Jose are
both run-of-the-mill highrises. I wonder what the definition of "iconic project"
means CIM and CalPERS? I hope not another stump of a building like has
been posted above.

[travis bickle]

Originally Posted by innov8

I agree, the Waterview and the Central Place project in San Jose are
both run-of-the-mill highrises. I wonder what the definition of "iconic project"
means CIM and CalPERS? I hope not another stump of a building like has
been posted above.

Man... do I agree. If that's CIM's definition of "iconinc," we're in for a bumpy ride.

[creamcityleo79]

I actually like Waterview a LOT! It may not be as tall as the Towers. But, it does have a look of sophistication. I went downtown yesterday and that hole is an even worse site in person...such a shameful eyesore. I say build Waterview Sacramento ASAP!