Doctor-turned-developer Maurice Herbelin has learned a construction truism: Things that can go wrong often do.
Take the alley behind his first-ever housing complex, off Sacramento's 34th Street, for instance. Just paving the tiny strip became far more costly and complicated than he anticipated.
Beneath the alley were water pipes that were too close to the surface and had to be lowered deeper into the ground. Same thing with some Pacific Gas and Electric Co. lines.
"We nicknamed it 'volcano alley,' " Herbelin says, "because it kept erupting with problems."
The alley work delayed construction for several months and ate up much of Herbelin's contingency funds.
But the project, near Highway 50, is now moving along. Classic, ornate streetlights were installed last week, at a cost of $3,000 each.
And the first four of what will be 30 two-story, three-bedroom homes – priced at $369,000 to $379,000 – are nearly complete. They boast high ceilings, granite counters and other upscale features.
Herbelin knows his first development venture wasn't blessed with good timing. With home prices down, he says he'll be happy to break even.
But he'll use the lessons learned to make money on future projects.
"For me, this is an experience deal," says Herbelin, who left a full-time job as an ER doc to get into the development game. "I think right now I'm just earning my stripes."
Condo wars
Real estate insiders are still buzzing about the financial dispute that led to a physical confrontation a week ago between partners in midtown's L Street Lofts condo project.
Investor Resmark Equity Partners LLC of Los Angeles wants to take over the high-profile project at 1818 L St. Developer Sotiris Kolokotronis of Sacramento is resisting.
Negotiations are said to be ongoing with Kolokotronis traveling to Los Angeles today to meet with Resmark execs.
Until there's a resolution, sales staffers have been told they can show units in the eight-story building but can't negotiate any deals.
Here's a parenthetical note: Mayoral candidate Kevin Johnson has not acquired one of the penthouse units, despite reports that he made a purchase.
He's been leasing a unit since May with an option to buy, says his campaign manager, Steve Maviglio.
Hollywood north
Cable network HBO showed Sacramento some "Love" last month, to the tune of $301,000.
That's how much was spent locally – on food, hotels and other expenses – when an episode of "Big Love" was filmed here, says Lucy Steffens of the Sacramento Convention & Visitors Bureau.
About 100 actors and production people spent nine days filming in town, mostly at the Delta King, which was decked out like a casino. The episode – about a road trip by the HBO drama's polygamous family – will air early next year, Steffens says.
She says the convention bureau gave a little love back to HBO, picking up a $1,000 fee the company incurred for using a dusty part of Old Sac as a staging area.
Plus, on one especially hot August day, the bureau bought fruit smoothies for the entire cast and crew from the Produce Junction shop on Front Street.
Says Steffens: "I just felt so sorry for those people working under the (TV) lights."
Reach Bob Shallit at (916) 321-1049. Back columns: www.sacbee.com/shallit.
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