Condo News Highlights
Sacramento Area Officials Say Region is Ready for Mixed-Use Boom
By Kelly Sheehan, Online News Editor. Dated 12/14/2006
DECEMBER 13, 2006 -- New York -- Look out for multifamily construction in Sacramento, Calif., a group of Sacramento area officials told MHN today at the magazine's headquarters in Manhattan. The region -- soon to be home to several more mixed-use, transit-oriented developments -- is attracting people who can't afford to live in the over-priced suburbs and Bay Area, or who are looking for a maintenance-free lifestyle.
Paul Hahn, director of economic development for Sacramento County, told MHN that the area's population is currently totaling about 2.2 million, and is expected to grow another million within the next 10 to 20 years. "We're one of the fastest growing regions in the country," he said. "With that growth, a big issue is housing. Where do we put all those people?"
Hahn added that large technology corporations, such as Intel, HP and Apple, have been setting up offices in Sacramento County, bringing young professionals with them. Many of these employees don't want to buy single-family houses but prefer condos and apartments with more residents in their age bracket and more activities.
Traditionally, population growth has sprawled out into the suburbs, Hahn said. But now, officials and developers are hoping to change the pattern, creating a vibrant, dense city by "building up, not out."
"There is… regional support for this plan, to grow smarter than we have in the past," John Dangberg, assistant city manager of the city of Sacramento, told MHN.
"Until a market is forced to [build up], people are still going to want their patch of grass and little chimney," J.D. Stack, program manager of economic development for the Sacramento Municipal Utility District, told MHN. "The market is changing—land for homeowners has gone through the roof and affordability has dropped like a rock."
To lighten the load on area residents, the Sacramento Region Blueprint Project, a countywide plan to develop the area successfully, is working to build compact housing, urban-infill communities and mixed-use, transit-oriented developments, Dangberg said. The project is aiming to build about 100,000 housing units in the next 20 years.
"What's exciting is what's going on downtown," he added, noting BCN Developments' Aura, a planned 38-story, mixed-use building with 373 condos, and the construction of Towers on Capitol Hill, a $500-million mixed-use development, consisting of two high-rises that will rise 56 stories. Towers on Capitol Hill, a Saca Development project, will include nearly 850 condominiums.
The city has invested about $11 million in the Towers project, with the idea that in less than two years, tax revenue from the completed complex will cover the investment's cost. About 80 percent of the Towers' unfinished units have been sold, raising Blueprint supporters' hopes. But mixed-use is a relatively new concept for Sacramento County, Dangberg stressed.
"The question is: can the market support it?" Hahn said. "We don't know yet."
Officials say that in the past, the city of Sacramento and West Sacramento underutilized its waterfront, developing industrial buildings. But Union Pacific Railyards, a planned urban-infill development, might spark urban vibrancy and further development along the Sacramento River and Port of Sacramento. The complex will include between 7,500 and 11,800 housing units, 1.3 million square feet of office space, 220,000 square feet of retail and an entertainment and sports venue. The city's proposed Sacramento Intermodal Facility, known as Sacramento Valley Station, would offer passenger and light rail transportation, and bus and taxi service, in an effort to support future residential development.
"We hope to do what San Diego did—ease the path to multifamily development," Dengberg said.
Hahn noted that urban living isn't for all area residents who are interested in renting an apartment or buying a condominium. Because of this, the county expects that mixed-use, transit-oriented communities will start popping up along transportation routes, helping to revitalize older suburban areas and attract additional large corporations.
"We want to be able to say that we have a downtown for the hipsters, corporate housing and traditional housing," Hahn said.
Paul Hahn, director of economic development for Sacramento County, told MHN that the area's population is currently totaling about 2.2 million, and is expected to grow another million within the next 10 to 20 years. "We're one of the fastest growing regions in the country," he said. "With that growth, a big issue is housing. Where do we put all those people?"
Hahn added that large technology corporations, such as Intel, HP and Apple, have been setting up offices in Sacramento County, bringing young professionals with them. Many of these employees don't want to buy single-family houses but prefer condos and apartments with more residents in their age bracket and more activities.
Traditionally, population growth has sprawled out into the suburbs, Hahn said. But now, officials and developers are hoping to change the pattern, creating a vibrant, dense city by "building up, not out."
"There is… regional support for this plan, to grow smarter than we have in the past," John Dangberg, assistant city manager of the city of Sacramento, told MHN.
"Until a market is forced to [build up], people are still going to want their patch of grass and little chimney," J.D. Stack, program manager of economic development for the Sacramento Municipal Utility District, told MHN. "The market is changing—land for homeowners has gone through the roof and affordability has dropped like a rock."
To lighten the load on area residents, the Sacramento Region Blueprint Project, a countywide plan to develop the area successfully, is working to build compact housing, urban-infill communities and mixed-use, transit-oriented developments, Dangberg said. The project is aiming to build about 100,000 housing units in the next 20 years.
"What's exciting is what's going on downtown," he added, noting BCN Developments' Aura, a planned 38-story, mixed-use building with 373 condos, and the construction of Towers on Capitol Hill, a $500-million mixed-use development, consisting of two high-rises that will rise 56 stories. Towers on Capitol Hill, a Saca Development project, will include nearly 850 condominiums.
The city has invested about $11 million in the Towers project, with the idea that in less than two years, tax revenue from the completed complex will cover the investment's cost. About 80 percent of the Towers' unfinished units have been sold, raising Blueprint supporters' hopes. But mixed-use is a relatively new concept for Sacramento County, Dangberg stressed.
"The question is: can the market support it?" Hahn said. "We don't know yet."
Officials say that in the past, the city of Sacramento and West Sacramento underutilized its waterfront, developing industrial buildings. But Union Pacific Railyards, a planned urban-infill development, might spark urban vibrancy and further development along the Sacramento River and Port of Sacramento. The complex will include between 7,500 and 11,800 housing units, 1.3 million square feet of office space, 220,000 square feet of retail and an entertainment and sports venue. The city's proposed Sacramento Intermodal Facility, known as Sacramento Valley Station, would offer passenger and light rail transportation, and bus and taxi service, in an effort to support future residential development.
"We hope to do what San Diego did—ease the path to multifamily development," Dengberg said.
Hahn noted that urban living isn't for all area residents who are interested in renting an apartment or buying a condominium. Because of this, the county expects that mixed-use, transit-oriented communities will start popping up along transportation routes, helping to revitalize older suburban areas and attract additional large corporations.
"We want to be able to say that we have a downtown for the hipsters, corporate housing and traditional housing," Hahn said.
- Go back
-
International Property | 
Featured Condos
Luxury Condos
Foreclosures
Real Estate Auctions
Apartment Rentals
Real Estate Agents
Investment Property- Vacation & Resort
Sign up now to learn about new condo developments and investment opportunities.
