Business Journal: Condo Project Dies
High costs for construction and concrete have killed a proposed condo project in midtown Sacramento.
Tuesday, October 24, 2006
The East End Gateway was supposed to be a high-end project, with 21 condominiums, some townhouses and apartments, and stores. But then the developers, the Loftworks Limited Partnership, went to bid … and it came back at $35 million, 25% higher than expected. The culprit is the rising cost of construction, especially steel and concrete. Suddenly it would lose money if built, not turn a profit. The East End Gateway joins a growing list of condominium projects in Sacramento that have been canceled or are being re-evaluated due to the downturn in the housing market and the soaring costs of construction.