brian7270

You are absolutely correct sir! Brian

Why? The price! Brian

As a multifamily developer this is just crazy. You cannot pay more than $30k per unit for rental land and make the numbers work and that is assuming average 900 SF units. Shrink them further and the land price eats up the total budget per square foot. Heck, most of Novarre(iation's) land prices are well below this per unit and they are condo. Brian

I think the market is now. From what i have been hearing from the advisers we respect is that every multifamily developer in the nation has their claws in Charlotte right now and that there is a serious risk of over building apartments. Land prices are going way up and proforma returns are dropping. Brian

Well as a developer we can build concrete and steel and you can pay 25-40% more for your unit but the question for any developer is if enough buyers will actually pay that... Some areas simply cannot support it or lenders will not lend or equity investors will not invest, etc. And by the way, you can hear people walk overhead very well in concrete buildings which the residents made us very well aware of after move ins on the first Novarre tower in Atlanta. Concrete is good at stopping low sound but not so good at high note sound. Wood visa versa and wood can be made near silent with proper techniques at a fraction of the cost of going to concrete. Brian

You are pretty close. I am hearing $35M-$40M for the 20 acres with at least a doubling of the density. I dont know that it will happen but there are people trying to make it happen. That I do know. What is amazing is how many times this site will have flipped. A lot of people could have egg on their faces... B

Don't worry, the site is going to be sold to another group that will reentitle it for the density it deserves. Beazer needs the cash... B

I looked at that Mill recently but could not figure out what to make of it. Its an interesting old building with exposed wood beams on the inside and at least half of the building is salvageable. The owner started renovation at one point trying to make it a office/retail/restaurant center and figured out in the middle of the process that his numbers would not work as it was going to cost too much to renovate with the low lease rates in this area. But I hate the city's garbage truck parking lot next door and the industrial building across the street, which makes it somewhat unattractive for full scale redevelopment. The land price is high. What do you guys think about this site? What would work here? B