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712 Tucker

c_harmons

By c_harmons
in The NC Triangle

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c_harmons Unincorporated Area

c_harmons

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just found out from a realtor friend of mine that ALL units are going to be rentals. She told me that they have not been getting the kind of support they want. They were expecting at least 20 reservations at the last home tour but only got 2. i hope this doesnt affect the overall project.
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cophead567 Whistle-Stop

cophead567

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just got an e-mail with more information:

"At this time, they have taken 80 reservations. There are a total of 179 units slated to be built. The builder will not start construction until he they have a certain amount of reservations taken. Because of this uncertainty, they are not guaranteeing a start date for construction. It costs $2000 to reserve your spot in the building. That money will be put towards the price of your condo at closing. If they do not decide to sell the condos and decide to rent them, your money will be refunded."

so it sounds like they may not go all rental after all. with no construction date set how long can they really wait for an adequate number of reservations? plus how does the decision to sell vs. rent affect the construction start, could they change the plans at the last minute? guess time will answer all this

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Jones_ City

Jones_

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If they are going to rent them all they have been able to secure credit from a lending institution or investor somehow....I am unaware of any setup where someone would say "we're only funding construction if you rent them but not if you only have 1/3 of them reserved. I don't know much about investment contracts but guess there could be setups where there is no construction interest but profits are paid per unit sold, but that would mean there are two completely different financing scenarios which does not make sense.....

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ncwebguy Burg

ncwebguy

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It sounds like the 80 reservations number puts them in a murky area.

It is standart to have at least half the units, in this case 90, reserved before construction starts, and a few more in case buyers fall through. The current demolition needs to be done if they are going to build it as condos or apartmetns, and it lures potential owners who might not put down a deposit until they see work being done. I'd guess the developers thought they would be in the 90 - 100 reservation range by now, which would then make it easy to secure financing as a condo project.

Since that hasn't happened, they can either wait to reach their magic number of reservations, delaying construction, or go the apartments route, get financing against future rental income and start construction when the site is ready.

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ChiefJoJo Town

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I would guess that reaching about 100 reservations would be enough for the go ahead. I'm a bit surprised they do not have more units reserved considering the base prices Crosland has proposed, $155k. My guess is all the cheap units are gone, leaving the larger units competing with the likes of 222 Glenwood, 630 North, West at North, etc. There is a lot more competition for the $300k+ 2BR unit market.

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c_harmons Unincorporated Area

c_harmons

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They are going rental. Bummer. I received a letter yesterday. The letter basically said they wanted to get started now and rental allowed them to do that.

Oh well, I can't afford anything else down there, but we could probably use some rental downtown.

I am not too upset.

I asked a friend who works there and he said it just made more sense. He said there are a lot of projects downtown right now and no rental. The market is probbaly slowing a little too he said.

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Gard Burg

Gard

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They are going rental. Bummer. I received a letter yesterday. The letter basically said they wanted to get started now and rental allowed them to do that.

Oh well, I can't afford anything else down there, but we could probably use some rental downtown.

I am not too upset.

I asked a friend who works there and he said it just made more sense. He said there are a lot of projects downtown right now and no rental. The market is probbaly slowing a little too he said.

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Jones_ City

Jones_

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I agree about the need for some downtown rental. In all the big cities I know anything about, the vibrant one's downtowns are a mixture of rental and owned. I think it is essential that we have a good mixture of everything. There are many people in life that prefer not to own, so by having some rentals, we will be able to attract a whole other market of people to downtown Raleigh. There are also people who are unsure if they would like downtown living and this will give them the chance to try it out without having to make such a big commitment as buying a condo.
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carynative Whistle-Stop

carynative

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And hopefully they will be in a price range people can afford...say 800-1000 bucks. There are plenty of condos that rent for 1200 and up and lots of apartments from 500-700 (Raleigh, Cameron Court, Grosvenor, Boylan, Cameron Village), I think this central range that corresponds to salaries of say 40-50k per year (where rental checks look for ability pay rent with one weeks salary) is a segment that is poorly served but probably in highest demand.
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ChiefJoJo Town

ChiefJoJo

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On one hand, this could be interpreted as a bad sign in that they could not get enough reservations to build as condos... but on the other hand, Glenwood South/DTR needs rental units, and if you figure Tucker had about 80 reservations, the fallout should help some of the other condo projects fill their units, especially the lower end units in Hue and 111 Seaboard, and maybe a couple more.

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RaleighRob Burg

RaleighRob

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^That's an excellent way to see this.

Afterall, in the past two decades, we've only seen two apartment buildings/complexes/etc built downtown---Gateway Park and Carlton Place--and both of those were subsidized. I think with all the other residential going into downtown these days, we're certainly due for more. Especially in that particular part of downtown, where I think the demand for apartments is probably highest.

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ncwebguy Burg

ncwebguy

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A *lot * of the just out of college to mid career types live in North Raleigh and Cary not because they want to, but because they *have* to due to market prices. The lack of inventory of apartments near downtown lets owners charge a lot more for smaller units without A/C close to downtown. That, combined with the 90s apartment boom in the Duraleigh, Creedmoor, Lynn, and other NW Raleigh corridors kept downtown from being a viable option.

The rise of Glenwood South has shown people in the mid 20s to mid/late 30s that living downtown has a lot more character, etc. to offer vs. the three story apartment building overlooking a parking lot and/or a collector street. You *can* actually walk to restaurants and other places, instead of jumping in the car to do anything.

The maturing of the market into apartment and condo projects, instead of a "pure condo" one, is a good sign as it offers more living options. There are a few other buildings, like Prarieview and the under construction revamp of Chavis Heights, but those have income restrictions as well. An apartment building near West at North could be good for government workers who don't want to commute and deal with the hassle of parking, especially as North Blount redevelops.

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Jones_ City

Jones_

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According to Raleighing, 712 Tucker will now be "The Lofts at Glenwood South." Also, Raleighing reports that the move to aprtments was not due to lack of sales, but to market demand. I don't know if we can take that at face value from Crosland's mouth, but it might be a good sign nonetheless.
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c_harmons Unincorporated Area

c_harmons

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Well really they never accepted or asked for contracts. So I can see what they are saying officially.

I actually just e-mailed Crosland asking them to think about putting one of their Nashville projects in Raleigh.

www.griffinplaza.com

Proabaly too modern for Raleigh though.

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DPK Hamlet

DPK

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Well really they never accepted or asked for contracts. So I can see what they are saying officially.

I actually just e-mailed Crosland asking them to think about putting one of their Nashville projects in Raleigh.

www.griffinplaza.com

Proabaly too modern for Raleigh though.

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