Bob Shallit: Midtown loft developer feels confident units priced to sell

Lots of developers are putting up "loft" housing in the downtown-midtown area. But Jeff Kraft says his 42-unit condo project at 1600 H St. is the real deal.

"Not to knock the other projects; they're great. But they're more 'apartmenty,' " says the president of Habitat Construction Inc. in Roseville. "We're building true loft space."

This means concrete floors, mostly open floor plans and 10-foot ceilings with exposed steel beams and industrial pipes.

Habitat began the project a year ago, taking over a vacant parcel where a previous developer had planned to build a two-story, 13-unit condo complex. Kraft proposed a much higher-density project with three floors of condos above street-level retail space.

City approvals were "fast-tracked," he says, "because this is just the kind of project (Sacramento) wants to see."

Now, even though the building looks far from finished, Kraft expects the first units to be ready for occupancy next month.

Prices range from $213,000 for a 395-square-foot studio to $699,000 for a two-bedroom, two-bath, 1,249-square-foot unit.

Can Habitat unload them when home sales are tanking and larger high-rise condo projects have flopped?

Despite troubles elsewhere, Kraft says midtown is still a residential hot spot. He expects the comparatively low prices for his modest-sized units will bring in buyers.

In fact, the project originally was envisioned as a "rent-to-own" complex. Now the emphasis is straight sales.

"We just think there's a pent-up demand from people who want to buy," Kraft says.

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Luring retail: Kraft's team also is optimistic about quickly leasing or selling nearly 10,000 square feet of retail space on the project's ground floor.

Allure Salon already has agreed to buy one spot and is relocating from 2115 J St., says David Herrera of Colliers International, who is handling the project's retail portion.

A second space could be occupied by either a local spa or a sake bar, according to Kraft. Two restaurant companies are vying for the prime corner spot. One is a national "white tablecloth" chain looking for its first local presence, Kraft says, and the other is a local restaurant owner.

"Either way, we're going to have a great restaurant there," he says.

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What a card: In Saturday's column, we gave credit to Merlot Marketing for producing the region's most creative holiday card. An honorable mention goes to the folks at Cushman & Wakefield's local commercial real estate office.

Their holiday card features a Scrooge-like character with the message, "We're so excited …"

Turn inside and it continues: "… that the holidays are over and we can get back to squeezing every penny out of every deal for you!"

It's signed by executive director "Chris 'Ebenezer' Strain."

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Buy low: And, because we finally became a recipient this year, we have to mention the holiday greeting from local financial planning firm Foord, Van Bruggen, Ebersole & Pajak.

Continuing a tradition started in 1994, the company includes a crisp $1 bill inside its annual card. The cover message: "Research suggests … money doesn't buy happiness."

Inside is the cash and the question: "Or does it?" There's a fake camera to capture the reader's smiling response.

The company sent about 3,000 cards to clients and friends this year, says partner Carol Van Bruggen. That's a lot to spend on holiday cards but cheaper than a fruit basket.

How does Van Bruggen recommend recipients spend their largess?

Combine it with other investment dollars, she says, and put it into low-priced stocks or REITs, in what will likely be a year for bargains. Bear markets, she adds, are "when the richest people get richer."

About the writer:

• Reach Bob Shallit at (916) 321-1049 or bshallit@sacbee.com. Back columns: www.sacbee.com/shallit