SOLD – 301 Capitol Mall

301 Capitol Mall - Taken in 2010

After nearly 18 years and several attempts to develop the land, CalPERS has sold the former twin 53-story Tower on Capitol Mall site to the Shingle Springs Band of Miwok Indians. Located at 301 Capitol Mall, the property was sold for $17 million and the Miwok Indians have said they have not plans for the site. The 2.39 acre block is currently fenced off with over a thousand piles poking out of the ground where 615 foot tall towers would have gone. The site is also over grown with full size trees on the southern side facing Capitol Mall. Social media seems to be excited that a casino could someday be built there, not me.

Resources Building Renovation – Exterior Replacement

1416 9th St. Resources bldg. renovation

The 60 year old Resources Building at 1416 9^th Street is now having the exterior cladding attached. It appears modern and clean, but the exterior has now lost any architectural significance and will soon be a featureless, bland glass tower. The original exterior had character and reflected a time that was the beginning of office high-rises being built in downtown.

1416 9th St. Resources bldg. renovation

The cost to do a total replacement of the exterior must have expanded the overall $461 million renovation costs quite a bit. It was not that long ago in 2010 two 18-story State office towers in downtown were also renovated. Both State offices #8 & #9 at 714 P Street had both interior and exterior upgrades while also keeping the original exterior design. AC Martin rendering

1416 9th St. Resources bldg. renovation

Resources bldg. AC Martin rendering

Resources bldg. AC Martin rendering

Alhambra Blvd. Housing

Mixed-use project at 324 Alhambra Blvd. Sacramento, CA

A mixed-use proposal has been submitted to the city along Alhambra Blvd. to build a six -story, 302 housing units with 344 parking spaces. The estimated construction costs for this proposal at 324 Alhambra Blvd. is estimated to be $71 million and it’s unknown when the project might start. Before construction begins, it looks as if all the current structures will be demolished except one home on C Street.

Mixed-use project at 324 Alhambra Blvd. Sacramento, CA

Kaiser Hospital Plans For Railyards

Kaiser Sacramento Railyards Medical Center

Earlier this month Kaiser filed plans with the city to develop a medical facility in the Railyards. The main hospital building proposed would have 310-bed in an eight story building in addition to a parking structure, five story support building and energy center. The eight story building would have 657,500 square feet and the total property size for the project would be 17.4 acres at 105 Bercut Drive. Kaiser has an aggressive deadline with plans to begin construction this year. The estimated budget is at least $1.5 billion. To see more renderings and learn more about the project, go to AgencyCounter and click on the yellow dot at the corner of 5^th Street and Railyards Blvd.

It looks to me that the land around the car garage could be developed at a later date to expand and build another “L” shaped hospital… maybe when the Railyards are fully built out.

Kaiser Sacramento Railyards Medical Center

Kaiser Sacramento Railyards Medical Center

Kaiser Sacramento Railyards Medical Center

Colliers Sacramento Office Snapshot: Q4 2023

It’s becoming pretty evident that the local office market is in a death kneel. In just a few months when the new State of California’s Richards Blvd. office complex opens, the delivery of 1.25 million square feet will lead to vacancies in both state-owned and leased offices as the state fills the new complex. In the current Colliers Q4 Sacramento office report, there are several office properties that are being considered for office conversion to housing, one location is at 1800 3^rd Street, the vacant CalPERS building could convert to 141 apartment units. The State has three buildings on Capitol Mall totaling 1.08 million square feet of existing office space currently being evaluated for office to residential conversion.

Colliers fourth quarter report also shows the Sacramento office market recorded its sixth consecutive quarter of occupancy losses. For the year of 2023, there was a total net loss of -1,184,793 square feet of leased office space which is a slight improvement compared to 2022, but It appears the vacancies numbers are due to rise some more in 2024.

Colliers Sacramento Office Snapshot: Q3 2023

The third quarter of 2023 recorded more of the same across Sacramento’s office market. As stated in the Sacramento Colliers Office MarketReport, the shift toward hybrid work will lead to higher vacancy rates for a prolonged period and some office properties will need to be repurposed to alternative uses. The regional vacancy rate rose to its highest level since the end of 2012 as it approaches the all-time high of 21.7% from Q4 2011. Total occupancy losses since April 2020 have now surpassed 4.86 million square feet. With the State of California planning to vacate approximately 300,000 square feet of leased space in early 2024. It’s possible the market will set a new record-high vacancy rate by mid-2024 if current trends fail to change course.

The market report by Colliers also stated that some office owners will have to seriously consider converting properties to alternative uses to generate income. The State of California selected McCormack Baron Salazar as the lead developer to convert three state office buildings on Capital Mall in Downtown Sacramento into upwards of 400 affordable apartment units. Many local office buildings fail to meet the criteria for viable conversions to housing. A National Bureau of Economic Research report found only 33 buildings totaling 1.3 million square feet that could realistically be converted into apartments.

How Not To Add To A Historic Building

 Now that the former Capitol Annex is demolished, it’s puzzling to see that the state has not shown an official rendering of what will replace the old structure. Here are some images from 2022 of the proposed Capitol Annex replacement buildings.  Much larger, with a glass exterior, overpowering the historic 1860's Capitol, and diminishing the view of the architectural front. It also appears that all approaches to the historic 1860’s capitol are now below grade, changing the historic character of the building.

You could argue that the proposed rendering negatively impact the historic 1860’s capitol.

Constructing a new addition on or adjacent to a primary elevation of the building which negatively impacts the building's historic character.

Attaching a new addition in a manner that obscures, damages, or destroys character-defining features of the historic building.

Placing new construction too close to the historic building so that it negatively impacts the building's character, the site, or setting.

Constructing a new addition that is large as or larger than the historic building, which visually overwhelms it (i.e.; results in the diminution of loss of its historic character).

Adding new construction that results in the diminution or loss of the historic character of the building, including its design, materials, location, or setting.

Constructing a new building on a historic property or on an adjacent site that is much larger than the historic building.