Five new towers envisioned downtown
An L.A. firm, undaunted by others' failures, plans to transform apartment site.
By Mary Lynne Vellinga -
[email protected]
Published 12:00 am PDT Friday, March 28, 2008
Story appeared in MAIN NEWS section, Page A1
Undaunted by the recent failure of two high-rise condominium projects planned for downtown Sacramento, a Los Angeles-based developer proposes to transform a leafy, four-block area south of the Capitol with five new residential towers.
The Bond Cos., an experienced developer of infill housing and retail projects nationwide, filed an application with the city of Sacramento Thursday to replace 206 low-rise apartment units in the Capitol Towers neighborhood with five towers ranging from 15 to 33 stories.
Mark Bachli, a principal in the Bond Cos., said the "market will determine what is actually built" on the Capitol Towers property, bounded by Fifth, Seventh, N and P streets. Still, he said his company views the parklike superblock – where no cars are allowed – as the perfect place for a high-density urban development, which can be built in phases as market conditions permit.
"It's ideally located along the light-rail line. It is close to thousands of jobs, retail, restaurants and entertainment opportunities; those are the key ingredients to smart and sustainable growth," Bachli said.
The proposed project also would contain 50,000 square feet of street-level retail – which Bachli said could include a grocery store – and parking garages wrapped by three to five stories of housing or office space. It may also include a hotel. The 15-story apartment building at the center of Capitol Towers would remain.
In total, Bond Cos. is proposing to build 1,646 new housing units. Doing so would create a neighborhood nearly eight times as densely packed with people as the current one on the four-block property, which city leaders have long viewed as underused.
"I think it's great," Assistant City Manager John Dangberg said of the plan, which is in its formative stages. "This site is one of the few superblocks we have in the downtown. It's part of a four-block neighborhood.
And it has the highest-density residential zone that we allow in our zoning code, but it has only two-story walk-up units on it."
Since the early 1960s, when it was developed by the late U.S. Rep. James Scheuer, Capitol Towers has been a tree-shaded oasis in downtown. The streets that once ran through the property were closed long ago and replaced by pedestrian walkways. At the project's heart sits an Olympic-size pool, fountain and an abstract sculpture mural by artist Jacques Overhoff.
While Capitol Towers remained static, however, the neighborhood around it has changed significantly in the past 40 years. The downtown skyline emerged. Light rail appeared next door. The potential of the nearly 10-acre parcel has not been lost on developers, but none has been successful so far.
In the early 1990s, the Scheuer family tried and failed to land a big state office tenant for the land.
In 2000, developer Post Properties, a well-known firm from Atlanta, proposed to turn the property into an "urban village." Post pulled out after running into a buzz saw of neighborhood opposition. Frustrated by the lack of movement, the Scheuer family allowed the two-story garden apartments to deteriorate and sit vacant. In 2001, the property was purchased for $25 million by a Marin County development firm, which performed an extensive renovation and upgrade of the tower and garden apartments.
The complex is now 93 percent leased at rents ranging from $875 for a low-rise studio to $2,165 for a three-bedroom tower unit. A partnership controlled by the Bond Cos. bought Capitol Towers in June 2007. Bachli would not disclose the purchase price, but property records show the partnership borrowed $43 million on the parcel the same day it changed hands.
Mayor Heather Fargo said the Bond Cos. may fare better than others with its development plan. Unlike Post Properties, it is proposing to keep the streets closed to cars, and to preserve as many of the trees dotting the property as possible.
"This (plan) does a good job of preserving what's special about Capitol Towers; that's the tree canopy," Fargo said. "It's also the superblock where people can walk for several blocks without having to cross a street. "I think it will help maintain the sense of community that's very strong in the neighborhood."
Bachli said his firm has held two meetings with tenants of Capitol Towers and plans to reach out to residents of the neighboring 500 N St. and Pioneer towers as well.
Still, Jim Pachl, an environmental lawyer who opposed the Post proposal, is watching the latest idea for Capitol Towers with a wary eye. He met with Bachli and other project representatives about a month ago. Pachl and Judith Lamare own a condominium on the 14th floor of 500 N St.
Pachl said he's troubled by the recent failure of the Aura and the Towers condominium projects. The Towers was under construction when it melted down financially, leaving a huge hole in the ground on the Capitol Mall.
"I'm sitting here saying, 'How realistic is this?' " Pachl said.
Unlike John Saca, the developer behind the Towers project, Bond Cos. has substantial experience building infill residential developments in such cities as Los Angeles, San Francisco and Chicago. Its Sunset & Vine project in Hollywood is credited with helping spark that neighborhood's revitalization. Headed by brothers Larry and Robert Bond, the firm has offices in Los Angeles, Chicago and the Washington, D.C., area. New projects in Oakland and Chicago include Whole Foods stores.
Bachli would not discuss possible financing for the Capitol Towers site, other than to say that Bond has partnered with financial giant AIG Inc.
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