Metropolitan Park Apartments - Construction

[ModSquad]

I have an infill development that was a candidate for Brownfield credits. We declined because the cost of getting the credits was more than the credits.

What happens to Metropolitan Park Apartments after 10 years when the credits disappear and the $500 a month rent doesn't even come close to meeting the debt service?

The issue of the cost to get the credits being more than the actual credits is a common occurance. This is why typically Brownfield credits only work on very large projects where they are worthwhile going after.

In regard to the rents, that is a very good question.

When a project is set up it has equity investment which is reduced each year over 10 years via the tax credits and it also has permanent financing. The rents on the project have to be able to support operating costs plus the payment for the perm financing. On our Avenue Apartments project the total cost to build is about $1.5 million. Our permanent financing is only about $100,000 for 10 apartments. Cash flow is not a problem on this project and will not be.

The way a project is set up is that the owner owns 1% of the tax credit the investor owns 99%. The investor owns 1% of the equity in the reall estate the owner owns 99%. At the end of 15 years the owner buys out the investor's 1% stake in the project.

The tax credit lasts 10 years, but the affordability period is 15 years. They add a couple of years to accomodate closing out the project. However, there is techinically an additional 15 year affordable period, but honestly...I do not even understand that aspect of it.

[GRDadof3]

From what I've heard, this project needs to fill a 50% occupany target before they start to build. The foundation will be poured, but other than that nothing is to be done until they reach their occupancy numbers. Nothing has been bid on this project, because this number hasn't been reached yet.

They must have hit their 50%, because there's steel starting to go up on this project.

[GRDadof3]

Since I mentioned this, thought I should follow up with some evidence.

[Prankster]

Since I mentioned this, thought I should follow up with some evidence.

Maybe they are only building it 1 floor at a time, as they get the reservations. So if it is 4 stories tall, they must have hit 25% occupancy.

[GRDadof3]

Check out this tower going up on Ionia:

[dbrok]

Check out this tower going up on Ionia:

Wow, I guess I haven't been by there lately. It seems like the whole city is under construction.

[GRDadof3]

Wow, I guess I haven't been by there lately. It seems like the whole city is under construction.

No kidding, and some of the yet-to-start projects (and renovation projects) are going to overlap the current ones, so it might even look like GR is being re-built from scratch. Nice!

[downtownGRguy]

I suspect that any delays are more due to getting the ducks in a row re: all the tax credits, etc. I doubt that there is any sort of a 50% occupancy stipulation. You really just can't ask renters to commit that far in advance. Besides, if you look on their website, they are going to start accepting applications in Sept 2006. I would imagine that if they can get the credits they are looking for to hit those low income qualified rents, they will have no problems getting to full occupancy

[real advanced in 616]

A call is going out to the award winning photojournalists staff of urban planet Grand Rapids. An interesting sight is bestowed upon us; the Metropolitan Apartments has a fast-erecting crane on site. This piece of equipment is on the cutting edge of construction technology. They have been using them in Europe for several years now. Which is why the cranes manufacturer is French company known as Potain. Anyway someone get over there and get some documentation for the crane addicted public.

This link should give you an idea of what I talking about Potain>Products

[GRCentro]

A call is going out to the award winning photojournalists staff of urban planet Grand Rapids. An interesting sight is bestowed upon us; the Metropolitan Apartments has a fast-erecting crane on site. This piece of equipment is on the cutting edge of construction technology. They have been using them in Europe for several years now. Which is why the cranes manufacturer is French company known as Potain. Anyway some get over there and get some documentation for the crane addicted public.

This link should give you an idea of what I talking about Potain>Products

I was just going to ask about that! Thanks for the info, real. It looks very interesting. (And it's red; GR is assembling quite the crane color diversity now.)

[cjpetter]

A call is going out to the award winning photojournalists staff of urban planet Grand Rapids. An interesting sight is bestowed upon us; the Metropolitan Apartments has a fast-erecting crane on site. This piece of equipment is on the cutting edge of construction technology. They have been using them in Europe for several years now. Which is why the cranes manufacturer is French company known as Potain. Anyway someone get over there and get some documentation for the crane addicted public.

This link should give you an idea of what I talking about Potain>Products

Here it is

[GRDadof3]

I didn't know this thing is remote-controlled. There was one guy with a hand-held unit controlling it. Pretty sweet!

[PBJ]

I didn't know this thing is remote-controlled. There was one guy with a hand-held unit controlling it. Pretty sweet!

Mike and I drove by it on Saturday evening and were wondering how the heck it was run.. now we know.. The thing is goofy looking that's for sure. Looks like it's going to just fall over.

[Rizzo]

That's a neat one... Looks as though the counterbalance is also the foundation support. I suppose with heavier loads that require more counter weight the weights can just be stacked on. Pretty sufficient for the small job, but I bet it can pack a punch.

[GRDadof3]

That crane is making quick work of this project

[GRguy]

Drove by there Saturday during the high winds and it was moving all over the place. I thought someone was working it, until I realized it was just Mother Nature

[grcitydog]

Another thing about this little crane is that it runs on electricity. When I looked closely for the engine, I could see that it is plugged into a generator on site. Is that cool or what?!

[eagle]

I didn't realize this was such advanced technology. I laughed the first time I saw it. Thought it was a match-box car, toy tower crane.

[DwntwnGeo]

Projects continue to grow taller and taller around town

Here are some pictures I took on my City tour on Saturday.

[mejane]

Does anyone know who to contact for rental info? I have a friend

moving from Denver who's interested - also, is this families only,

or can a single person rent one of the two story townhouses? Thanks!

Nevermind! Found the website in one of the back pages.

[GRDadof3]

Does anyone know who to contact for rental info? I have a friend

moving from Denver who's interested - also, is this families only,

or can a single person rent one of the two story townhouses? Thanks!

Nevermind! Found the website in one of the back pages.

Legally speaking, they can't discriminate as to whether a family or a single person rents.

[john_denver]

This might be a dumb question but why are they building this apartment building out of wood?

Are the steel I-beams going in back of the wood?

I was thinking this building was going to much more involved.

It looks like they are building a single family home in the burbs.

Please help me understand.

[GRDadof3]

This might be a dumb question but why are they building this apartment building out of wood?

Are the steel I-beams going in back of the wood?

I was thinking this building was going to much more involved.

It looks like they are building a single family home in the burbs.

Please help me understand.

Most townhomes, and a lot of stacked product, are built of wood with steel for load bearing sections. Are you anti-wood? 99% of the homes in the City of Grand Rapids are built of wood.

[AlexPKeaton]

I'm anti-wood for buildings like this. GVSU's downtown housing are also wooden buildings with cinder blocks used in the stairwells. It's cheap and isn't appropriate for a building this size. In Winter Hall (the newer building behind Secchia Hall) you can look down the hallway and just see how uneven the building is. Those buildings weren't built to last, and I'm afraid this one may not be either.

-nb

[john_denver]

Most townhomes, and a lot of stacked product, are built of wood with steel for load bearing sections. Are you anti-wood? 99% of the homes in the City of Grand Rapids are built of wood.

No, I am not anti-wood. My impression was that this site was going to be multi-level apartments and thus expected to see more steel, cement etc. I was just suprised to see all that wood when I was expecting something else. I guess I never got a good idea of what this structure was suppose to be.

Yes, I agree that 99% of all GR home are made of wood. I have live in homes made of wood since I was 4 days old