Monday, June 19, 2006

Downtown Delay

A sign that the housing downturn is being felt in downtown Sacramento? From the Sacramento Business Journal via MSNBC:

The developer of the downtown Sacramento railyard, rather than cut back its plans for the mall's worth of retail it proposed in March -- as some competing interests had once hoped -- is now saying it will build most of that space in the first three years of the 15-year project. Thomas Enterprises Inc. this week amended plans it presented to the city three months ago, and now says it will delay building most of the housing units until after the sixth year...

Thomas reduced the maximum number of homes slightly, to 10,676 from 11,085 in March, said Nedzlene Ferrario, project manager with the city's Development Services Department...The company does not foresee starting the project with a great deal of housing. During the first three years, only 983 units would be developed. And during the second phase -- years four to six -- only 846 more homes would be built. Not until the third three-year phase would a larger crop of homes be built -- 2,495 units.

Ault said this is logical, because the rail-yard would need to have retail, parks, streets and other amenities to draw larger numbers of homebuyers. And given the drop in sales during the past year or so, it makes sense to start with fewer units, said Greg Paquin, owner of The Gregory Group, a local company that studies the market.

5 comments:

capitalme said...

I just wanted to say that Sacramento Land(ing) has turned into quite a nice blog as of late! Keep up the good work!

waiting_for_the_fall said...

I agree. Good job!

Happy Renter said...

New Sac bee article comparing this bust to the last.

http://www.sacbee.com/content/homes/re_news/

tom stone said...

at least you have water,here in sonoma county the city of rohnert park anounced approval of a 2,000 home subdivision.but there is no water to serve them.and won't be.supposedly they will start building late'07.i wonder where they plan to get financing?,or buyers?at least in sacto you have a somewhat diverse economy,here it is booze and tourists on the legal side,pot and meth on the illegal side,and that's it.

Gwynster said...

Sacramento (hell almost all of the central valley) used to be a big meth and pot producting city until construction work started to pick up. I'm guessing we'll see more of it when the construction jobs evaporate in the next couple of years.