Business & Real Estate

Apartment complex near Sacramento State is scrapped

A controversial apartment complex planned near the Sacramento State campus has been canceled after its developer announced it was halting all construction projects.

Campus Crest Communities Inc. of Charlotte, N.C., announced this week it would “discontinue its construction and development business” as part of a shake-up that included the departure of its chief executive and chief financial officers.

A company official confirmed that the Sacramento apartment complex is one of the casualties of the decision. “We are not moving forward with that project,” said vice president Alex Eyssen.

Actual construction hadn’t yet begun on the project, which was supposed to open next fall, he said.

The company, which specializes in building apartments near college campuses, was poised to build a 200-unit complex on 13 buildings along Redding Avenue, less than a mile south of California State University, Sacramento.

The City Council approved the project last January, but only after imposing modifications in response to a host of protests from neighborhood groups concerned about impacts on traffic, noise and safety. For instance, the number of apartment units was reduced to 200 from 224.

Although the apartments were going to be marketed exclusively to college students, and Campus Crest planned to operate a shuttle to the Sacramento State campus, the project was a private venture and wasn’t affiliated with the university.

Kim Nava, a university spokeswoman, said Sacramento State wasn’t particularly disappointed to hear about the project being halted. The university is planning to build a new 400-bed dormitory, set to open in 2017, and “that’s what we’re focused on,” she said.

Eyssen said it isn’t clear what will happen to the property. “We’re going to look for strategic alternatives and evaluate the highest and best use of this asset,” he said.

The company’s announcement came as it disclosed a $119 million loss for the third quarter.

Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.