March 26, 2008
Sheraton Grand Hotel Given Ok To Sell…
On Tuesday, The Sacramento City Council approved the $130 million dollar sale of the Sheraton Grand Hotel and parking garage on J Street.
Although many have criticized that the City may be rushing into things and should wait out this slow real estate market in hopes of selling for a higher price in the future, the Council members voted 8-1 in favor of selling now.
Two developers, David Taylor and CIM Group plan to pay the $130 million for the hotel and garage and the City stands to make $40-$45 million after all is said and done. In an unusual agreement, the City has also agreed to set aside HALF of their proceeds to help underwrite future Taylor and CIM projects…
A little Sacramento-related background on David Taylor and CIM Group that you can pretend you knew…
*Taylor built the new City Hall expansion at 1201 K Street, the Esquire Plaza and almost completed US Bank Building on Capital Mall.
*Taylor and CIM Group are both partners in the Cosmopolitan, an entertainment, dining and social destination at 10th and K Streets which will include include high-end office space. Renovation of the original 1956 Woolworth Building is underway now and construction is scheduled to be completed by October 2008. According to DowntownSac.org, tenants will include a 200-seat Cosmopolitan Cabaret theater; Cosmo, a new dining concept by local restaurateur Randy Paragary; Socialize, a plush modern ultra lounge; and 10,500 s.f. of private office space within blocks of the State Capitol.
*CIM Group built the Plaza Lofts, a new seven-story loft-style apartment building on 8th and J Streets (near Ceasar Chavez Park)
*In a partnership with CalPERS, CIM controls the former Sac Towers site on Capital Mall, once controlled by developer John Saca.
So where might Taylor and CIM cash in their subsidiaries and develop next? Potential sites include…
The Old Montgomery Ward department store at 9th and J Streets and the lonely lot at 601 Capital Mall (former envisioned site of the Aura Towers)
All I can say is…thank God for these guys! They seem to be two of very few developers that are actually getting projects built in Sacramento despite the depressed market!
What are your thoughts?? Did the City make a good call or jump the gun?
Read Sac Bee Article Here.