One Downtown Sacramento housing project still planned, but another appears dead
By Ben van der Meer – Senior Reporter, Sacramento Business Journal
Feb 27, 2023
https://www.bizjournals.com/sacramen...acramento.html
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Eyes might have widened a bit at last week's State of Downtown event, when the Downtown Sacramento Partnership listed two long-planned projects on K Street as coming soon in a slide presentation.
As it turns out, the 10K project by Mohanna Development Co. and the 800 K/801 L project by CFY Development Inc. are on different trajectories these days, though construction for neither is imminent...
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CFY Development 8th & K Project:
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...CFY Development may have to start over entirely for its project covering two vacant sites across K and L streets a couple blocks to the west.
Entitlements for that project expired last October...
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Frankly, I am happy to see CFY's 8th & K project go back to the drawing board. The proposal was only 5 or 6 floors, and the design was nothing special.
I think we've had our fill of cookie cutter 4-to-8-story boxes.
Of course, I prefer high-rise towers. However, we've been told ad nauseum that tall buildings do not "pencil" out, and I'm OK with that. Shorter, midrise buildings are fine IF the designs are good.
Here's the problem: With the exception of a small minority, most proposals are really boring. (Also, is it me, or are they are all starting to look the same?)
I would like to see beautiful or (at least) interesting proposals. So, even if a tall building is not in the cards for 8th and K, I hope the developer comes back with a better design.
For example, here are a couple Google Maps screen grabs of a residential building in Los Angeles, by the Beverly Center:
The building is only 6-1/2 floors. However, its design is waaaayyy more interesting than the crap that most developers propose for Sacramento. True, the building is on a triangular property, and that probably dictated the "curvalicious" lines. However, an oddly shaped property is not required to build something interesting.
Mohanna 15-story, "10K" project:
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"Yes the project is still in the works, the entitlements are active, but we are cautiously waiting on market conditions to improve (construction costs, interest rates, overall downtown environment post-pandemic)," said Nikky Mohanna, principal at Sacramento-based Mohanna Development, in an email...
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I am glad that Mohanna's 10K project has not been withdrawn.
10K would be 15 floors: 186 apartments; 205 hotel rooms; ground-floor retail; and a floor dedicated to co-living (separate bedrooms and bathrooms with shared living areas).
Yes, it's also another box... But it's a 15-story box! I'll take 15 floors over the 4-to-8-story projects that we see most of the time. Plus, the design actually looks like it belongs in a city.
Still, I am not optimistic about the 10K project getting built as planned. Entitlements will expire in June, and I don't think the market will change enough in the project's favor by then. (Who know? It may get worse.)
Plus, I ran the numbers, and I think 10K would cost at least $90 million... Possibly more? (Maybe the construction people on this forum can correct me if I am wrong.) Even in good times, I am not sure the project could generate enough revenue to cover all the costs and turn a profit within say 10 or possibly 15 years.
While I am on my soapbox...
I read that a developer has expressed interest in the entire block north of the "new" CalPERS headquarters. (That would be 1801 3rd Street, which is on the southeast corner of 3rd and R streets. Currently, it's a surface parking lot / COVID testing site.)
Get this: The developer wants to build a
300-unit, 5-story residential project... Yuck!
There is no way that an entire block should be covered with a sprawling, 5-story building. (Especially, when the site is so close to downtown.)
If the developer wanted to split the block in two, construct an 8 to 10-story, 300-unit residential building on one half, and sell the other half, then great! I have no problem with that.
But another 5-story box (I assume it's a box), covering an entire block is just so bland... and criminal.
What is wrong with these developers? They had their fun with the gray-on-beige boxes. Now, it's time for them to step up their game. Sacramento deserves better.