I agree if the building fills in less than a year that's a good sign.
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Would you rather have the 128 units filled within a month from people moving in from other downtown places or a year with 128 units filled with about 200 new downtown residents....I'll take the year
Good point. I guess the pace seemed slow to me, but it makes sense that it wouldn't immediately fill up. If it did, it would probably be due to the units were priced too low. Hopefully the pace of leasing will continue and show that downtown can support luxury, new construction rentals.
It's particularly impressive that these units are priced right at the market peak and don't offer on site parking.
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I was at the Renaissance Grand at the 20th floor ballroom and it had a good view of the back of the tower...first thing i noticed is that all floors had balconies in the back for the AC units....thought those normally went on the roof....2nd thing was there was a lot of cracks all over the building facade...maybe that held up the opening/completion for a long time.
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Speaking of....
Tower at Old Post Office Plaza has letter of intent on restaurant.
"He says the Tower is 30 percent occupied now, and expects it to be full in less than a year."
http://stlouis.cbslocal.com/2014/08/05/ ... rts-tower/
Tower at Old Post Office Plaza has letter of intent on restaurant.
"He says the Tower is 30 percent occupied now, and expects it to be full in less than a year."
http://stlouis.cbslocal.com/2014/08/05/ ... rts-tower/
I saw that article. There was also one in the business journal last week. Are they both saying that the tower wasn't completely open until now? I thought it opened back in April. I guess maybe some people moved in while they completed the work on other units.
By the way, here's the article:
http://www.bizjournals.com/stlouis/morn ... berts.html
By the way, here's the article:
http://www.bizjournals.com/stlouis/morn ... berts.html
I think it's just a PR/Marketing stunt to get a little media coverage of the apartments: The building "opened" May 1, but is "done" now. Apparently it worked.
Looking over the OPOP Tower leasing site today I noticed that many of the units for which one could "Apply Now" are now listed as "Coming Soon" I wonder if these "Coming Soon" units are only just getting built out, and the "Tower is now completed" news from last month was indeed just a PR stunt.
Perhaps not so coincidentally, the Tower just passed 33% occupation, with 44 of the 128 units reserved. Perhaps that was a threshold for the bank to release more construction funding, or for them to inject more equity, or both. Just speculation, but hopefully this now means another push to get the "Coming Soon" units finished and leased up and have the building full by the end of the year as one of the (obviously biased and optimistic) investors estimated.
Perhaps not so coincidentally, the Tower just passed 33% occupation, with 44 of the 128 units reserved. Perhaps that was a threshold for the bank to release more construction funding, or for them to inject more equity, or both. Just speculation, but hopefully this now means another push to get the "Coming Soon" units finished and leased up and have the building full by the end of the year as one of the (obviously biased and optimistic) investors estimated.
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Haha the end of the year. . .which year? Actually 33% in ~5 months isnt too bad given the price. Lets hope that pace can continue
The post in the "State of downtown" thread about slow rental made me go check up on how this was renting. According to the website there are 47 rented. So only three leased in the last month.
On the website, 62 apartments and one penthouse now listed as Reserved or Unavailable. I also count 27 apartments and one penthouse where you can "Apply Now" vs. 36 that are listed as "Coming Soon" and you can't apply. I suppose the Coming Soon apartments are still having work done?
yes I think that what it means. So it sounding like is about 50% leased in 6 months not too bad.MRNHS wrote:On the website, 62 apartments and one penthouse now listed as Reserved or Unavailable. I also count 27 apartments and one penthouse where you can "Apply Now" vs. 36 that are listed as "Coming Soon" and you can't apply. I suppose the Coming Soon apartments are still having work done?
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Anyone have an actual occupancy rate on the Tower? Website looks like maybe 50%, some insiders tell me it's closer to 20%.
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^ ouch. Some of the units surely are reserved but not yet occupied. but even if 50% of the units are spoken for that still isn't great. Hopefully they'll have some strong spring leasing and give a bit better confidence for other potential tower developers.
What's the anecdotal evidence? Has anyone here been noticing more apartments lit up at night? Or more activity of residents coming and going?
Last I checked it was up around 68 apartments reserved (of 128).
Last I checked it was up around 68 apartments reserved (of 128).
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Here is what strong leasing looks like in a peer city....
http://www.bizjournals.com/cincinnati/n ... uxury.html.
Downtown Cincinnati needs more apartments.
If more proof is needed, look no further than the leasing activity at Seven at Broadway. After three weeks, the 111-unit luxury apartment development is 50 percent leased...
Nick Rabin, asset manager of multifamily for North American Properties, said he's worked on leasing up a number of apartment projects in cities with hot rental markets such as Dallas, Atlanta and Nashville. None of them have filled as quickly as Seven at Broadway.
Usually, North America Properties schedules nine to 12 months for an apartment project to lease up.
Let's hope for solid Spring leasing.. and a nice restaurant announcement!
http://www.bizjournals.com/cincinnati/n ... uxury.html.
Downtown Cincinnati needs more apartments.
If more proof is needed, look no further than the leasing activity at Seven at Broadway. After three weeks, the 111-unit luxury apartment development is 50 percent leased...
Nick Rabin, asset manager of multifamily for North American Properties, said he's worked on leasing up a number of apartment projects in cities with hot rental markets such as Dallas, Atlanta and Nashville. None of them have filled as quickly as Seven at Broadway.
Usually, North America Properties schedules nine to 12 months for an apartment project to lease up.
Let's hope for solid Spring leasing.. and a nice restaurant announcement!
^Agreed. Although I do think this factor gives the Cincy project a big leg-up: "Seven floors of apartments were built above an existing garage."
Unfortunately, pricing apartments at the very top-end of the market, and not having one-site parking is going to create a significant headwind to getting leases signed. It'll be interesting to see how quickly 720 Olive leases up since: 1) It's probably not going to be priced at the absolute top-end, and 2) it has underground and adjacent/connected garage parking. Then again, the best comp could be the Park Pacific, which took about 18 months to get 90% leased and has a parking that is all-too-familiar.
Unfortunately, pricing apartments at the very top-end of the market, and not having one-site parking is going to create a significant headwind to getting leases signed. It'll be interesting to see how quickly 720 Olive leases up since: 1) It's probably not going to be priced at the absolute top-end, and 2) it has underground and adjacent/connected garage parking. Then again, the best comp could be the Park Pacific, which took about 18 months to get 90% leased and has a parking that is all-too-familiar.
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^ If leasing picks up this Spring and they get to around 75% by one year mark I don't think that will be too terrible; and of course they can reduce pricing, etc. if they feel the need. Does anyone know if they've been running specials. etc.?
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My commecial real estate peeps say no new high-rise downtown construction for at least 2 years..and that includes BPV...Why? No demand..
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^ I'd take hearing an announcement in 2015/2016 with construction beginning in 2017. In the meantime I hope we can tackle a few more of the larger historics.
Is their take only on commercial real estate (a.k.a office space)? Or does that include residential?sirshankalot wrote:My commecial real estate peeps say no new high-rise downtown construction for at least 2 years..and that includes BPV...Why? No demand..
From the sounds of it, Downtown is the laggard in the region in terms of office absorption, and is poised to be for the foreseeable future with the AT&T Building being abandoned. It sounds like Clayton is going to continue to be the hot market for commercial real estate (with a potential Centene II in the works), but that DT could be competitive in the residential space.
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^ Market rate residential demand just doesn't appear to be strong enough at the moment for typical developers to take the risk on a new tower. But I still find it hard to believe a luxury tower wouldn't work at BPV; unfortunately that site is held by a risk-averse company that sucks at the public teat.
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They bought the building on the cheap so I believe they can be more patient than if they had all the costs of building from the ground up.roger wyoming II wrote:^ If leasing picks up this Spring and they get to around 75% by one year mark I don't think that will be too terrible; and of course they can reduce pricing, etc. if they feel the need. Does anyone know if they've been running specials. etc.?
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^ Good point. We're lucky we even have that tower to worry about how fast it fills up.