brian7270
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Posts posted by brian7270
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Every time I drive to Noda, I am amazed by how blank the intersection of N. Davidson and Jordan is. I know that 28th Row is set for the east side of Davidson, but there is a huge lot available on the west side. Does anyone know anything about that lot? Why has no one jumped on it?
Why? The price!
Brian
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Quick rundown:
The current bid for the 12 acre property is $37.65M. The other bidders have until Aug. 6th to raise the bid by at least 5% or $39.5M.
Grubb says he envisions apartments with rates of $1,000 or less a month. Considering the cost of land, there would need to be a very high amount of units to make it work, with units as small as 500sqft. He was quoted saying there would be restaurant and service retail space, but he doesn't see this being a retail site.
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
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The market 3 years from now will be apartments. Vacancies are falling locally and nationwide, rents are rising, employment will be booming downtown, institutional money is going to need some sort of product to chase, and office buildings are getting too expensive, and best of all, there is little in the pipeline. Will he step-up to the plate, or will he let this pass, and in a few years say, "nah, the market's not right...too much new product coming on-line"
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
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I'm sorry, but I guess I'm the only one who's less-than-thrilled about Steelhaus. First off, for all of its "strong" exterior appearance (which I DO like and appreciate because it's not the typical Charlotte red brick), it's a stick-built project. Second, no matter how pretty they make the new McDonald's, it's still a McDonald's and Steelhaus is always going to look right down into its parking lot. I can picture myself as a Steelhaus resident lying in bed at night unable to sleep because A) the ceiling above my head is creaking because my neighbors are walking around on their floor and I can hear each and every one of their footsteps, and B) every 45 seconds I hear, "ssshhkk! Welcome to McDonald's. May I take your order?"
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
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The fact that they are pushing dirt around doesn't disuade me from believing that they may sell the site. In a sense, they are adding value, by prepping the site, and especially if they get it entitled to a higher density. The fact that Beazer is sinking money into advertising for a site that will ultimately sold, would be the strongest indication that they are going ahead themselves, but then, the advertising costs could be a drop in the bucket on the return they could make on flipping the land. They paid about $1M an acre, a graded site with MUDD zoning would be easily worth 2-2.5 times that.
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
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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
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Does anyone have information about the Louise Mill (at Hawthorne). It appears there are a few artisans that run their businesses from there. Any news of converting/rehab for that mill?
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
FreeMore Projects (West Morehead, Freedom Drive, Bryant Park)
in Charlotte
Posted
You are absolutely correct sir!
Brian