Quote:
Originally Posted by ojax
On one hand you've got city officials saying it's difficult to lure companies to Sacramento because of a lack of premium large-scale offices, and on the other hand you've got developers saying it's too big of a risk to build them. The way I see it is, the situation will stay the same unless someone has the cajones to build.
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The last time someone invested big downtown on speculation was in 2007 by
Tsakopoulos Investment. The Tsakopoulos family build 500 Capitol Mall with
their own money, no banks involved. I believe the day it open about 20% of
the tower was leased and about 1 ½ years later it was near 80% leased.
Luring several big tenants form 555 Capitol Mall. The timing to finish the
tower was perfect, if they had waited to much longer before beginning
construction, the slow down leading up the recession might have paused the
project and possibly shorten the tower.
David Taylor on the other hand has 20 years of experience building in
downtown and has successfully built 4 high-rises only if subsidies are
included. Without the cities financial aid most large projects built
downtown in the last 25 years might not have happen. K Street between 5th
& 11th streets are lined with subsidized redevelopment. CADA has had to
offered subsidies for every housing project they have ever done up until the
site at 14th & N Street. Sacramento politicians have created an environment
where subsidies are the rule not the exception.
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