Sacramento Proposal/Approval/Construction Thread - III

[j_deguzman10]

Originally Posted by sactivity

It's disheartening to have to rely on the state for anything over 15 stories in the foreseeable future. I'm rapidly losing faith in 301, the Metropolitan is a no show, per usual and the Wells Fargo tower will forever be Sacramentos tallest building. While the rest of the world builds builds builds.

Personally I think that the construction of state office buildings, while good for the state, is awful for the private sector because I feel like the expansion of the public sector is clogging up opportunities for private companies to enter the Sacramento Market since it is already dominated by government officials.

[j_deguzman10]

On another note, can someone explain why there is literally no buyer's market in the urban core? Most of the urban projects around the grid are for rent and other than CADA Site 21, I can't think of any other projects that are for sale and not for rent.

[CAGeoNerd]

Originally Posted by j_deguzman10

On another note, can someone explain why there is literally no buyer's market in the urban core? Most of the urban projects around the grid are for rent and other than CADA Site 21, I can't think of any other projects that are for sale and not for rent.

Developers want to make money.. They make money by factoring in long-term rentals with the ability to sell later on in the money making.

A lot more money to be made that way than build and sell units.

Of course, something could be done by the city, like making stricter limits the number of rental units that can be in new residential housing developments... but they're more interested in generating tax revenue and increasing units period, rather than increasing home ownership on the grid.

[kamehameha]

Department of Natural Resources' crane is up again.

[CAGeoNerd]

Originally Posted by kamehameha

Department of Natural Resources' crane is up again.

Looks like they've added a bit of height just today!

[Sachornet]

It looks like the new plan is to demolish the old Clarion Hotel site and start from scratch. Anyone have the details on the new proposal for those without a Business Journal subscription?

https://www.bizjournals.com/sacramen..._news_headline

[snfenoc]

Originally Posted by Sachornet

It looks like the new plan is to demolish the old Clarion Hotel site and start from scratch. Anyone have the details on the new proposal for those without a Business Journal subscription?

https://www.bizjournals.com/sacramen..._news_headline

SKK wants to build something similar to its myriad of other projects - a 5-story apartment building with ground-floor retail. The only difference is that the footprint is so huge that the building would have around 190 apartments.

This makes me a little sad. I thought rehabbing the old hotel back into its swingin’ 60s days as a boutique hotel was really cool. That area could use a nice hotel. With the Music Circus and party crowds, I think it would be awesome.

However, housing is a more pressing need. The developer and his investors have been pretty good at building 5-floor apartment buildings, recently. I guess it’s a model with which they are familiar and comfortable?

Also, the old hotel building may be in a pretty sad state. Maybe it’s better to just tear it down and start fresh.

Plus, there are a number of hotels under construction or proposed:

Fort Sutter Hotel and The Marshall (u/c)

Eastern Star (Hyatt House) on 27th and K, 7th and I, 15th and L, and Nikki Mohannas 10th and K. (Proposed)

Then, there are a few other, OUT-THERE POSSIBILITIES: Vanir is talking about including a 250-room hotel in their phantom proposal; Sacramento Commons, if built-out, could include 320 hotel rooms; The Metropolitan site’s new proposal could include a 200-250 room hotel component; and I think the Rail Yards has a hotel being kicked around. There may be many others that don’t come to mind.

Basically... Maybe there are too many hotels under construction or on the horizon to compete. AND a huge, expensive renovation on a dilapidated 2-story building, that probably won’t have enough rooms to cover the costs, is not justified. Add in the fact that housing is at a premium, and SKK is now going with “Plan B”.

[Sachornet]

Originally Posted by snfenoc

SKK wants to build something similar to its myriad of other projects - a 5-story apartment building with ground-floor retail. The only difference is that the footprint is so huge that the building would have around 190 apartments.

This makes me a little sad. I thought rehabbing the old hotel back into its swingin’ 60s days as a boutique hotel was really cool. That area could use a nice hotel. With the Music Circus and party crowds, I think it would be awesome.

However, housing is a more pressing need. The developer and his investors have been pretty good at building 5-floor apartment buildings, recently. I guess it’s a model with which they are familiar and comfortable?

Also, the old hotel building may be in a pretty sad state. Maybe it’s better to just tear it down and start fresh.

Plus, there are a number of hotels under construction or proposed:

Fort Sutter Hotel and The Marshall (u/c)

Eastern Star (Hyatt House) on 27th and K, 7th and I, 15th and L, and Nikki Mohannas 10th and K. (Proposed)

Then, there are a few other, OUT-THERE POSSIBILITIES: Vanir is talking about including a 250-room hotel in their phantom proposal; Sacramento Commons, if built-out, could include 320 hotel rooms; The Metropolitan site’s new proposal could include a 200-250 room hotel component; and I think the Rail Yards has a hotel being kicked around. There may be many others that don’t come to mind.

Basically... Maybe there are too many hotels under construction or on the horizon to compete. AND a huge, expensive renovation on a dilapidated 2-story building, that probably won’t have enough rooms to cover the costs, is not justified. Add in the fact that housing is at a premium, and SKK is now going with “Plan B”.

Thanks for the info. Yeah, my thoughts are similar to yours in that rehabbing the Clarion Hotel would've been a really nice project, it may work out for the better by getting more house units in that area. Any thoughts if there will be any strong opposition to tearing down the old clarion building?


Some more updates and at least one rendering of the apartment building: https://www.bizjournals.com/sacramen..._news_headline

[CAGeoNerd]

Crane is up at Capitol and 28th street, looks like that boutique hotel will be going up higher soon!

[snfenoc]

Originally Posted by Sachornet

Thanks for the info. Yeah, my thoughts are similar to yours in that rehabbing the Clarion Hotel would've been a really nice project, it may work out for the better by getting more house units in that area. Any thoughts if there will be any strong opposition to tearing down the old clarion building?


Some more updates and at least one rendering of the apartment building: https://www.bizjournals.com/sacramen..._news_headline

I assume there will be opposition from the adaptive reuse people, who will argue the building is worth saving - due to its history.


According to the developer:

“We worked very hard to figure out some way to do it,” Kolokotronis said. But between financing challenges, the decaying nature of the building and competition from other hotel projects, he said, the concept didn’t make sense anymore. “At that point, we looked at alternatives, and housing is a high priority for everybody.”

Credit:
Sacramento Business Journal
Why Kolokotronis changed his plans for midtown Clarion site

By Ben van der Meer
Staff Writer, Sacramento Business Journal
June 25, 2019
https://www.bizjournals.com/sacramen...r-midtown.html


Here’s an image from the article:

[LandofFrost]

Originally Posted by snfenoc

I assume there will be opposition from the adaptive reuse people, who will argue the building is worth saving - due to its history.


According to the developer:



Credit:
Sacramento Business Journal
Why Kolokotronis changed his plans for midtown Clarion site

By Ben van der Meer
Staff Writer, Sacramento Business Journal
June 25, 2019
https://www.bizjournals.com/sacramen...r-midtown.html


Here’s an image from the article:

Yep this is exactly what we need. 100 more of these buildings and we'll be good.

[snfenoc]

A few additional takeaways from the article posted above:

• Construction would begin late winter/early spring of 2020
• The 95-unit SKK project across 16th Street from the old Clarion Hotel, called H16, should begin occupancy by year's end.
• A few blocks north, the 96-unit SKK project, called E@16, should be done in the fall of 2020.
• The 253-unit Press Building (in the PQR corridor) should be opening early 2020.
• The 737-unit project near Arden Fair should begin site work late this year.

[Sachornet]

Originally Posted by snfenoc

A few additional takeaways from the article posted above:

• Construction would begin late winter/early spring of 2020
• The 95-unit SKK project across 16th Street from the old Clarion Hotel, called H16, should begin occupancy by year's end.
• A few blocks north, the 96-unit SKK project, called E@16, should be done in the fall of 2020.
• The 253-unit Press Building (in the PQR corridor) should be opening early 2020.
• The 737-unit project near Arden Fair should begin site work late this year.

Glad to hear all these SKK projects are coming down the pipeline. Hopefully, he keeps on going at this pace (at the very least).

[Dieler]

Originally Posted by Sachornet

Glad to hear all these SKK projects are coming down the pipeline. Hopefully, he keeps on going at this pace (at the very least).

SKK has really been on a roll lately.

And aren't they supposedly teaming with Saca on the Metropolitan? Love to get some good news on that one soon!

[Sachornet]

Originally Posted by Dieler

SKK has really been on a roll lately.

And aren't they supposedly teaming with Saca on the Metropolitan? Love to get some good news on that one soon!

Yes, you're right. His Arden Fair project and Metropolitan seem like his two biggest proposals. Hopefully as all these other projects near completion, we'll get some news on Metropolitan soon.

Any word on when Bay Miry's 1631 K street project is suppose to start up?

[Mr. Ozo]

Originally Posted by Sachornet

Any word on when Bay Miry's 1631 K street project is suppose to start up?

Interesting that it was just updated on Loopnet with a lease option on the current buildings.

Last Updated: 6/25/2019
The former Sacramento Ballet building is now available for lease as creative office space or retail. The building features an excellent glass line, concrete and wood floors, high ceilings with exposed trusses and hard HVAC ducts. The property is at the corner of 17th and K Street and is surrounded by restaurants, retail, and entertainment venues. The building is available as-is or you could be the first in line for ground floor space of a brand new, mixed-use mid-rise with 50 to 100 units of residential over ground floor retail and office space.

[snfenoc]

Originally Posted by Sachornet

Yes, you're right. His Arden Fair project and Metropolitan seem like his two biggest proposals. Hopefully as all these other projects near completion, we'll get some news on Metropolitan soon.

Any word on when Bay Miry's 1631 K street project is suppose to start up?

Last I read (in the SBJ) initial site work is to begin this summer, with completion scheduled for the end of 2022. But I also heard about the lease option. Hmmmmm. Sounds like Bay Miry got entitlements and then decided to flip for more cash?

Oh yeah, I listed some hotel projects in an earlier post and noted that there may be others that did not come to mind. Well, I forgot that the California Fruit Building on 4th and J Streets is being converted into a 100-room hotel, with 3 restaurants and a 3rd floor deck. Again, more hotel competition.

[Pistola916]

Originally Posted by Dieler

SKK has really been on a roll lately.

And aren't they supposedly teaming with Saca on the Metropolitan? Love to get some good news on that one soon!

Me too. It’s been close to a year that the mayor made a big hoopla announcement on Twitter about their partnership. Yet we have not heard a peep since. Tubbleweeds.

[Sachornet]

Originally Posted by Mr. Ozo

Interesting that it was just updated on Loopnet with a lease option on the current buildings.

Last Updated: 6/25/2019
The former Sacramento Ballet building is now available for lease as creative office space or retail. The building features an excellent glass line, concrete and wood floors, high ceilings with exposed trusses and hard HVAC ducts. The property is at the corner of 17th and K Street and is surrounded by restaurants, retail, and entertainment venues. The building is available as-is or you could be the first in line for ground floor space of a brand new, mixed-use mid-rise with 50 to 100 units of residential over ground floor retail and office space.

Hopefully, the project will still move forward without any delays, but we'll see...

They recently started site work on the corner of 18th and Capitol Avenue on a smaller multi-unit development in what used to be a parking lot (next to D&S Development's Office, across the street from Zocalo).

There's also the 7th and I Street Hotel project that seems to be held up. Any other projects from Bay Miry/Katherine Bardis that are in the pipeline?

On another small development note, there are 4 brownstone units on the corner of 15th and T that look like they're pretty close to putting on the market. It looks like they'll be listing in the mid 700Ks https://www.hk3development.com/proje...t-brownstones/

Hoping this means that the developer of this project, HK3, will start work on their apartment development on the corner of 10th and U soon.https://www.hk3development.com/projects/10u-mixed-use/

It's nice to see some of the outer midtown neighborhoods (Richmond Grove, Southside Park get some new development)

[snfenoc]

I checked with Bay Miry about 1631 K Street. Basically, I asked if he still plans to develop the site.

His reply was, “Plan is still to develop that building and our ownership group hopes to break ground by early next year.”

We shall see.

I am not sure it’s appropriate to say that the 7th and I hotel is being held up. I mean, the first reports I read about it are dated like 2-3 months ago. Seems pretty standard to me. (Unless you know something I don’t???)