X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SACRAMENTO-BCN Development pre-sold 80% of its Daniel Libeskind-designed 38-story condominium tower here during a recent weekend sales event. The company needed to pre-sell at least 50% of the units in order to close on its construction loan.

BCN president Craig Nassi tells GlobeSt.com they could have had a sellout if they had more brokers to write up contracts. “The reason we were not able to sell 100% of the units was we only had seven licensed California real estate brokers writing contracts,” Nassi says. “They were writing eight hours a day for three days straight.”

The luxury high rise slated for 600 Capitol Mall is expected to break ground before the end of the month and take 24 months to complete. The construction lender is Corus Bank, Nassi says. The equity required for the loan will come from Nassi and unnamed private equity partners.

Nassi says his two in-house brokers are continuing to write up contracts and should have another 10% of the units under contract in the coming days. The final 10% of the units will be held back until construction is under way, he says.

Prior to the weekend sales event, all 265 units had been reserved with $5,000 deposits and many others were in back-up position to nab a unit in the only high-rise residential tower to be designed by Libeskind, an acclaimed international architect and a personal friend of Nassi. Over the weekend, buyers had to get serious by putting up 15% non-refundable deposits that will be held in escrow during construction.

Nassi says the total sellout will be around $192 million, which translates to about $600 per sf. By pre-selling most of the units despite high demand, Nassi is admittedly leaving money on the table. “I’d rather take a nickel now than a dime later because markets change,” he told GlobeSt.com prior to the weekend sales event.

Aura’s units will range in size from 746 sf to more than 3,000 sf and the prices will range from the $400,000 range to upward of $1.5 million. The residential units are being sold in-house, though Nassi says he is paying commissions to brokers who bring in buyers.

Each unit will be outfitted with Bulthaup kitchens, Miele and Sub-Zero appliances and glass-railed terraces with panoramic views. Common area amenities will include: a pool and hot tub, terrace bar and landscaped roof garden; indoor and outdoor Yoga areas; an outdoor fire pit; humidors and wine storage for residents; private movie screening room; separate his and-hers spa facilities; fitness center; business center; and two luxury hotel suites for owners’ guests.

Owners who are buying units as second homes or investments will be able to put them into a rental program. Covenants will restrict units from being leased for any period less than 12 months.

The project will include about 14,000 sf of retail that is being leased by Jeredith Duvall of TRI Commercial. “Her mission is to get a very high-end coffee shop and a very high-end restaurant,” Nassi says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.