Friday, January 26, 2007

Now Nassi Goes Begging

Sound familiar? From the Business Journal:

The developer of the Aura condominium project in downtown Sacramento is seeking a $9.6 million loan from the city of Sacramento as the last piece of financing needed to build the $175 million, 39-story building.

Craig Nassi, of BCN Development in Denver, originally sought a higher amount in the form of a grant and a loan, but city staff examined the financing and determined approximately $10 million would make the project viable, assistant city manager John Dangberg said.
...
If approved, Nassi would have 90 days to secure $150 million in loans and an additional $18 million in equity needed to build Aura. If the financing isn't in place within that three-month timeframe, the loan offer expires. The Council would need to revisit the issue once the loan terms are negotiated. The deal would also give Aura $360,000 in city sewer credits.

The Aura project was approved months ago by the city, but Nassi has not pulled construction permits as he's struggled to pull the project together. "We should be ready to go within a few weeks after the city council meeting on Tuesday," Nassi said of construction timetable.
...
Nassi said he was unable to secure financing elsewhere. "The construction market is tough right now," he said. "Sacramento is an unproven market because high-rise condominiums haven't been done."
...
According to a report from Hanley Wood Market Intelligence, buyers have put down 15-percent deposits on 196 of the project's 268 units, or about 73 percent of them, through November.

9 comments:

Anonymous said...

Who wants to bet ... the 10 million doesn't come through, and the 196 Fools that put 15% non refundable deposits down get their deposits Non-refunded as Nassi disappears into canada or europe or south america or asia.
Cool.
Cow_tipping.

HappyinSF said...

Correct me if I'm wrong but I seem to recall from my time in downtown that there were a couple older (70's?) high rise condos downtown. I always wondered who lived in them as I never knew anybody who did. Maybe they were converted to apartments..not sure. So it may not be true that it hasn't been done before.

dan said...

LOL...

there are so many freaking lies and outright distortions in the reporting and statements by the Liars Dangberg and Nassi that an essay on them should be forthcoming...

However, if one has to rely on a miserable 10 million dollar loan on a project of this size, then one has some GIANT Saca type problems...

But this entire Scam-O-Rama is just "Living in Urban Sacramento" where Distortions, Lies, BS and Hype rule the day...

but it all is quite humorous

Anonymous said...

These guys already know the price of the project,

Saca did,
Nassi does (but that maybe assuming too much as he was removed from the Reno project for basic incompetence)

There may be a SLIGHT fluctuation up or DOWN (now)but the math is not terribly complex...the project cost X, you sell condos/parking/retail for Y and Z is your profit OR IN THE CASE OF NASSI and SACA, YOUR LOSS...

Mark Friedman knew how much his project on J Street was going to cost before ANY BIDS as he had built basically the same thing down the street...and IT DID NOT MAKE ECONOMIC SENSE...and would not make ECONOMIC SENSE without more huge doles from the government or their quasi governmental coconspirators

so who do these clowns and their associates on the government dole turn to? The City, but of course...

There's a Sucker Born Every Minute

Anonymous said...

So, based upon the article the City is now a sub-prime construction lender, loaning in a secondary position (behind the construction lender) with the anticipated loan proceeds being returned in the form of increased property taxes. Hey why wasn't this secondary funding out there to help the Zero Dollar Down FBs who didn't put a nickle down (and in some instances walked away with money)? After all, properties were assessed at their higher value based upon the inflated sales prices, thus generating more income for the municipality from property tax generation.

Anonymous said...

Yes, the financing is a tad bit creative if not outright fraudulent...but that's not Nassi's problem, for like Saca he's simply a huckster con man...

the true criminals are Fargo, Dangberg, Kerridge for running this fraudulent shop in Sacramento...

hopefully the people will not stand for these fraudulent actors any longer after the Maloof Arena Scam

Anonymous said...

Happyinsf

The one I know of is 500 N street. They attempted to do the condo thing in 1980 and failed.

Investor bought most of the units and rented them out.

They are now being converted to condos. Second time the charm? No.

Anonymous said...

Second time is the crap. Or crack.
Whatever. Sacramento is suburbia. Whatever you do to it, its the anti SFO. People come to sac to get away from places like SFO. So turn it into a replica of SFO and guess what, people will go elsewhere ... maybe redding.
Cool.
Cow_tipping.

Sippn said...

I'll hang it out there, especially since someone's using 1980 as a standard - dude that's a quarter century ago.

I predict Nasi will get the loan and the addl equity he needs.

I'm not normally a condo guy but the time is right.