Another Day, Another Condo Project Cancelled
From the Sacramento Bee (or here):
Plans for an eye-popping housing and retail project in midtown have been shelved, the result of an overly ambitous design and a declining residential market..."We shot too high and it cost too much," said developer Mark Friedman, whose Loftworks partnership was plannning to build on facing parcels on the southwest and northwest corners of 16th and O streets...From the livinginurbansac blog:
CADA [Capitol Area Development Authority] boss Paul Schmidt says he's optimistic he can interest another developer in the facing parcels. Given the current housing market, he said the site might be more suited for apartments, rather than a condo project with for-sale units.
I'm not liking this trend of projects being canceled due to construction costs, couple that with a slowing housing market and this could be real trouble for more projects. This couldn't have come at a worse time given how much interest there is in developing in the central city.Update - From the Sacramento Business Journal:
In addition to the rising cost of materials, Friedman said the partners were concerned by the downturn in the housing market. They had expected people to be able to sell their homes so they could buy a condo in midtown, but with so many houses flooding the market, making it difficult for people to sell, they were afraid they wouldn't have enough buyers. The condos were to be priced at $325,000 to $480,000.
"We didn't consider raising the prices to make the project work," he said. "I don't think that is realistic."
D.R. Horton, the nation's largest homebuilder, came to the same conclusion last month as it canceled plans for a 21-story, 259-condo development downtown and another high-profile project, 203 condos on the banks of the Sacramento River at the Jibboom Street power plant. D.R. Horton cited the declining housing market for the moves.
14 comments:
It doesn't take an Einstein to figure out where this is headed. We will continue to see a series of these planned projects fall by the wayside as lenders begin to tighten up on their practices and projects simply do not pencil out. Sorry Downtown Sacramento but the time has come to get realistic with core development efforts. If it doesn't make economic sense, that lipstick on the lips of the pig isn't going to help.
ALL FIRST TIME HOMEBUYERS BEFORE YOU BUY PLEASE GO TO THE SACRAMENO POLICE WEBSITE AND USE THEIR SEARCH TOOL FOR CRIMES REPORTED NEAR THE HOUSE YOU ARE LOOKING AT. YOU WILL BE SUPRISED!!!! IT ONLY TAKES A SECOND AND IS VERY INFORMATIVE. IF YOU BUY IN ONE OF THESE CRIME INFESTED AREAS AS MARKET PRICES ARE GOING FURTHER AND FURTHER DOWN, YOU WILL BE STUCK IN A NEIGHBORHOOD THAT IS CRIME INFESTED AND YOU WILL NEVER BE ABLE TO SELL YOUR HOUSE TO GET OUT!!!!!!
DO NOT LET SOME REALTO WHORE TRY TO TELL YOU SOME AREAS ARE GOOD WHEN THEY ARE NOT. ALL THEY CARE ABOUT IS THE COMMISSION.
Wow that Sacramento Police search engine helped me make up my mind. My realtor had me convinced to buy a home in North Highlands, but now forget it. I cannot believe she lied to me like that. Northighlands is a really bad area. Thank You.
sacramento isn't doing too bad on the condo front compared to oakland and berkeley.a lot of new stuff was built in marginal areas,to say the least.maybe they can sell it all to iraqi millionaires fleeing the unrest there,they would feel right at home.
wait, wait, wait,
"there's a pent up demand for downtown sacramento condos"
"the condo collapse, might be true elsewhere, but here, we're different, there's this built up need for condos and plenty of buyers on the horizon"...
yeah right,
the kids at the clubs and at the Naked Lounge are just chomping at the bit to buy those $750,000 300 square foot Saca "closets" also known as "spacious loft" condos...
but hey, Hype is King and Sacramento doesn't follow the trend of real estate in the rest of the State..."we're special"...
but, that's "Living Urban in Sacramento"...
Sacramento could do with some more housing, priced to the kids and others who drive all the joints and downtown and not to phantom buyers driving Ferrari convertibles who don't exist...
and what's really whacked,
this is one of those private ventures that is actually a public works project, heavily subsidized (with the public's money), for millionaire developers, for expensive condos and apartments,
but that will really help Sacramento by employing a whole squadron of bartenders and waitresses who then can live in apartments in Del Paso Heights and West Sacramento because they've been priced out of Midtown and Downtown by heavily subsidized projects that benefit millionaires...
Now that's what we call "Living Urban in Sacramento"
this conversation is great! keep it up.
Saca is living in his father's shadow and now it trying to make himself a big man. Well when he goes bankrupt we can all say yeah father Saca who started Filco had great vision, while his son, well you know just a guy who thought throwing money at something will make things happen. Saca fill in the holes and go away.
Lander, any idea when you will be able to update the Sac median price chart? I'm interested to see what the Aug and Sept numbers do to it.
Anonymous said...Sac Police search engine helped me make up my mind....North Highlands, "
Nice you're falling for a real line of stuff. North Highlands in not on Sac Police site. Its in the county.
Hey if you are going to call Realtors whores, please use full names as some are my friends!
An altercation in North Highlands left one person dead and another in serious condition with stab wounds.
Sacramento County sheriff deputies were dispatched to the corner of Madison Avenue and Hillsdale about 5:30 p.m. Monday. There they found a 19-year-old man and a 15-year-old with stab injuries.
The injuries were reportedly sustained in an incident at an apartment about a mile away and a friend of the two victims drove them to a Chevron service station for help.
The 19-year-old, identified as Chaita Saechao, was fatally stabbed. The 15-year-old was taken to the U.C. Davis Medical Center with stab wounds to his upper body.
Deputies are looking for suspects. Anyone with information is asked to call the sheriff's department at (916) 874-5115 or Crime Alert at (916) 443-HELP.
Copyright 2006 News10/KXTV . All Rights Reserved.
Created: 2/13/2006 5:53:34 PM Updated: 2/14/2006 12:54:06 PM
Northighlands is a pit and realtors are whores who's only aim is to get a commission,
Homicide on Pioneer Way
At 4:11 a.m. on Saturday, September 23, 2006, Sacramento County Sheriff’s Deputies responded to the Pioneer Elementary School at 5816 Pioneer Way in Foothill Farms, for a report of a subject lying on the outdoor basketball court.
Upon their arrival, deputies discovered a Black male juvenile, approximately 13 to17 years of age, weighing 150 to 170 pounds, with short afro-style hair in “twisties”, he was wearing a multi-colored shirt and denim pants. The victim had trauma to his upper body. Paramedics arrived and pronounced the victim dead at the scene.
Sheriff’s Detectives have been unable to positively identify the victim, or determine a motive for the crime, and are asking for the public’s help. If any one has information regarding the identity of this victim, or about the crime itself, please contact the Sheriff’s Department at (916) 874-5115 or Crime Alert at (916) 443-HELP. You can remain anonymous and may be eligible for a $1,000.00 reward.
Sergeant Tim Curran,
Sheriff's Spokesman
Northighlands great place to live.
So maybe Lincoln Crossing doesn't look so bad?
Just to add my 2 cents to the safety issues. South Natomas has been a Ghetto for a long time now, but that infestation has spread to North Natomas as well.
Just recently a white male raped two women in their home at gunpoint for several hours and fled in a white SUV. In addition I see lots of ghetto types hanging around in North Natomas with not a police vehicle in sight.
There is very little police presence in Natomas, the police apparantly only come after the crime has been commited. They don't seem to have any prevention plans in place.
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