Sacramento Proposal/Approval/Construction Thread - III

[wburg]

Along 7th Street, half a block north of the recently completed building at 7th and G, in what is now a parking lot (and the former UP alignment before the tracks were moved.) A block or two from the proposed courthouse site.

Korey: Lots of vacant storefronts can mean lower rents if the buildings aren't brand new, but a bank is less likely to support the idea of new commercial spaces if there is already a lot of vacancy, as they want to ensure that the spaces are rented at a rate high enough to justify new construction. And the problem right now is that a lot of old buildings that ordinarily couldn't justify high rents are being offered for higher rents, meaning they're likely to stay vacant, and tenants willing to risk those high rents are less likely to make it in the long run if the business isn't highly profitable.

[creamcityleo79]

Originally Posted by wburg

Along 7th Street, half a block north of the recently completed building at 7th and G, in what is now a parking lot (and the former UP alignment before the tracks were moved.) A block or two from the proposed courthouse site.

Korey: Lots of vacant storefronts can mean lower rents if the buildings aren't brand new, but a bank is less likely to support the idea of new commercial spaces if there is already a lot of vacancy, as they want to ensure that the spaces are rented at a rate high enough to justify new construction. And the problem right now is that a lot of old buildings that ordinarily couldn't justify high rents are being offered for higher rents, meaning they're likely to stay vacant, and tenants willing to risk those high rents are less likely to make it in the long run if the business isn't highly profitable.

Ok...NOW I see why this isn't taller. That wouldn't be appropriate for that location, really.

[ltsmotorsport]

Eh, I would think they could at least match the floor count of that building just across the alley (assuming wburg meant the building at 7th and H?). I also worry a bit about the concentration of affordable units. Having that many so close together, and next to the jail and two courthouses doesn't bode well for the marketability of the immediate surrounding area. How will you convince potential investors that for sale units will work in the area if all potential buyers see is a concentration of uses such as that?

I'm not saying all of the railyards will follow suit, but it certainly isn't the best start. There just has to be an even spread.

[Wmlegr]

I could also see the part of 7th street in Alkili Flat becoming more of a thoroughfare in the future with the progress of the northeast railyards (+ soccer stadium, maybe), the completion of township 9, the expansion of the green line, further River district development, and maybe event a bridge to natomas. All of these will not happen soon, if they happen at all, but current development on 7th street should keep in mind that the street might be a good space for retail in the next years. I also like the idea of the le live-work units, which would allow the first floor's use to change with the market on 7th st

It just wouldn't be very good to build something based on the current market in the area, and then find out in a few years that the market has changed substantially because of surrounding development and that the first development no longer fits the area's market as well as possible.

[wburg]

Built and occupied buildings are probably a better sight for potential investors than parking lots. And there are new for-sale homes under construction at the other end of this neighborhood, the Creamery at 11th & D, which are in the shadow of the Globe Mills affordable senior housing complex and a stone's throw from Loaves & Fishes. Figure the for-sale housing will, with any luck, stitch together the existing neighborhood on infill sites, the way they have in Newton Booth and Poverty Ridge, where a lot of the new infill is for-sale housing like 20th & S, Tapestri Square and alley units. (PS: Pretty sure that 24th & S is actually 24th & T, which were supposed to be for-sale units but ended up as rental due to the market crash.)

[Wmlegr]

I agree. The creamery will definitely help. The benefit of live work units is that they can be used for residential or retail as the market supports. They do not necessarily have to be townhouses - they could still have more apartments above them. If there is more demand for buSiness in the area in the future, the use of the units can change accordingly. However, I do understand that the zoning makes it difficult and expensive to build sometimes.

[ltsmotorsport]

My point was to say that in approving projects for the railyards, the city must be mindful of creating concentrations of populations (of any measure) in order to build a fully integrated urban neighborhood. Too many potential investors, and more importantly prospective homeowners, see an issue with these projects no matter how well they perform. I can't recollect if the specific plan said much about this issue, but clear efforts should be made to integrate affordable units around the entire railyards site and not just stick them in one corner.

I think the point of having retail on 7th is important too, especially with the added visibility of light rail. Also, that block has a bit of stepped nature to it, being that the 6th and 7th street sides are about a full story different in height. Would be cool to also see a small retail space on the 6th street side facing the new courthouse (when built), creating a somewhat bi-level building. The parking garage could still be in the middle as well, with front doors on G Street. Taking it even further, you could have a fully integrated building with affordable and market rate units, bumping the height in that way...just my brainstorm.

[sacamenna kid]

Anybody know anything about the Powerhouse Science Center? Nothing seems to be happening on that property.

[snfenoc]

https://www.youtube.com/watch?v=XAsJZLYFldM

Above is a link to a presentation made by Christian Strain of Cushman & Wakefield. While it doesn't present much that is new (although I'm curious about the 13th and J Apartments mentioned briefly, near the end), I think it gives us an idea about what will likely move forward and what may struggle. Also, it does a good job of discussing demand, expected returns, Sacramento market capabilities, and the possibility for larger growth.

[Wmlegr]

Saw this on the business journal:
http://www.bizjournals.com/sacramento/ne...ummer-first-commercial-building-for.html

I know the area, and the site seems like a large cluster of industrial buildings. Does anyone know if they plan on replacing all of them or just some? Which one are they talking about replacing in this article?

[Pistola916]

Originally Posted by snfenoc

https://www.youtube.com/watch?v=XAsJZLYFldM

Above is a link to a presentation made by Christian Strain of Cushman & Wakefield. While it doesn't present much that is new (although I'm curious about the 13th and J Apartments mentioned briefly, near the end), I think it gives us an idea about what will likely move forward and what may struggle. Also, it does a good job of discussing demand, expected returns, Sacramento market capabilities, and the possibility for larger growth.

Interesting...first time I've heard of 831 L. What are the chances of this getting built? It would clear some of the blight in that location.

[snfenoc]

Originally Posted by Pistola916

Interesting...first time I've heard of 831 L. What are the chances of this getting built? It would clear some of the blight in that location.

Like Meridian II, the Cordano building has been kicked around for a while. Originally, I think it was supposed to be mixed use.

Based on the the presenter's comments, however, I'm not sure if Class A office space is the correct route.

I hope the Vanir tower goes through, however. It would certainly add to the skyline. Since it would be the company's headquarters, that might help move it along too. If Vanir is financing it, that's even better.

[wburg]

The speaker seemed pretty doubtful about the future of the office towers but was much more enthusiastic about housing. That 831 L Street project was kicked around a few years ago, if you visit the Cordano website they have a graphic of this rendering under the property but if you click on it, it's a brochure promoting potential lease of the existing 2-story building,originally a parking structure for the adjacent 1936 Montgomery Ward department store (with part of the department store on the lower level.) They are still connected by a bridge across the alley. I heard that the department store itself has sold, we'll see if that has an effect on this. At the time, there were two proposals, one for office and one for residential, and they went with office because it was introduced right as the housing crash was happening. According to the latest update to the city's General Plan, we have gained more than 1200 new housing units in the central city since 2010, while office vacancy rates have gotten worse, up to about 18%. Maybe they'll decide on another course of action?

snefnoc: The building mentioned in the Business Journal is the old Market Club, which is a 1920s building not 1950s--part of the farmer's wholesale market that is still in operation on 5th Street. That was started by a bunch of Chinese, Japanese, Italian and Portuguese farmers who didn't like how they were being treated at the bigger farmer's market distributors on the north end of town, so they started their own, and the Market Club was their restaurant, office and after-hours hangout. Kind of funny that the developer is kicking out the current wholesale grocery/vegetable/food merchants on this site when we're supposed to be touting our "farm to fork" credentials, but I suppose folks moving into the Mill on Broadway would be upset at the noise from the wholesale market, which opens for business at about 3 AM and has a lot of truck traffic.

The graphic at the end of the presentation, an aerial photo from the mid 1960s, was a bit deceptive--the view he showed was during the redevelopment era, all the big open lots were fully built out blocks demolished as part of redevelopment. Population in the central city had dropped from 58,000 to around 40,000 by then, most of that population lived on the blocks shown there as vacant or parking areas. Some of the pre-redevelopment buildings in downtown Sacramento were actually taller than the 1960s/70s buildings that replaced them, and of course the population was never returned, so instead of being the most densely populated part of the city, our central business district has a lower population density than Oak Park.

[snfenoc]

wburg, I think you meant to address that middle paragraph to Wmlegr. My question is about the 13th and J Street Apartments briefly mentioned in the presentation.

In regard to your words about the aerial photograph: Have you ever watched the clip on YouTube entitled "Urban Sacramento 1959: West End"? That video moves me to irritation every time I view it. People have been saying the same things and pushing quick fixes for years. Rendering after rendering and promise after promise, eventually the money runs out, and Sacramento is left with a hole in the ground. I'd rather everyone just get out of the way and let things develop naturally (whatever that means). I'll bet some of those buildings should have been demolished, but to mow down such a large swath? We still have blocks that sit underused.

Here's a link to that YouTube video:
https://www.youtube.com/watch?v=tEjik0y1P0s

[wburg]

Not sure what he was referring to--the corner of 13th & J Street doesn't have any vacant lots or vacant buildings. Maybe he meant i15, a midrise residential tower planned for 15th & I?

[snfenoc]

Nothing like vacant buildings. Maybe if we wait long enough, the Skyscraper Fairy will sprinkle magic dust (public funds) on property and a high rise will sprout from the ashes...

J Street partially reopens after fire in vacant Biltmore Hotel
BY BILL - [email protected]
03/26/2015 - 6:12 AM
http://www.sacbee.com/news/local/crime/article16357901.html

[Pistola916]

Originally Posted by snfenoc

Nothing like vacant buildings. Maybe if we wait long enough, the Skyscraper Fairy will sprinkle magic dust (public funds) on property and a high rise will sprout from the ashes...

J Street partially reopens after fire in vacant Biltmore Hotel
BY BILL - [email protected]
03/26/2015 - 6:12 AM
http://www.sacbee.com/news/local/crime/article16357901.html

Well if Saca could've gotten his financing together for The Metropolitan, this wouldn't have happened. Just sayin.

[wburg]

Originally Posted by snfenoc

Nothing like vacant buildings. Maybe if we wait long enough, the Skyscraper Fairy will sprinkle magic dust (public funds) on property and a high rise will sprout from the ashes...

Who knew magic dust was so flammable?

[creamcityleo79]

San Francisco-based Swift confirms plans to buy 630 K St.


Ben van der Meer
Staff Writer-
Sacramento Business Journal

Swift Real Estate Partners will close sale next week on prominent five-story downtown property 630 K St., the firm’s first purchase in the Sacramento region.
The building, an 85,153-square-foot mixed-use office and retail building, is directly east of the new arena now under construction, a fact of key interest to Swift.
“We think it’s transformational,” said company CEO Christopher Peatross, based on what Swift saw happen with its investments around new sports venues in San Francisco, San Diego and Seattle. “The number of events they’re talking about having there is really a great attraction.”

http://www.bizjournals.com/sacramento/ne...o-based-swift-confirms-plans-to-buy.html

[midtownsacto]

Does anyone know whatever happened to the Cathedral Square tower? There's a pretty detailed handout on it here, but I haven't read anything about it recently.

http://www.ctbt.com/aspx/getblob.aspx/flyer.pdf?ContentID=101880&s=flyer&Listing_Code=

Looks like it was approved 7 years ago:

http://www.bizjournals.com/sacramento/stories/2007/09/17/story4.html