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Old 02-01-2013, 08:21 PM
 
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Agree and the demand is in rentals right now.

Quote:
Originally Posted by arjay57 View Post
I've discussed this with a couple of big apartment developers.

It seems to me that development should be driven by demand, rather than simply by where developers can borrow money. The latter approach is a big part of what drove us into the gigantic financial mess of the 2000s.
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Old 02-01-2013, 08:26 PM
 
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Less risk to the developer as its easier to rent the units at a high rental rate then spending several years selling all the units.

Why would apartments only have a 15-20 year life span? Even the IRS gives you depreciation for 27.5 yrs but of course they will last much longer, especially in these prime locations.

Quote:
Originally Posted by arjay57 View Post
Less risk to whom, though? I would expect many developers to build as quickly as they can, take the tax deductions and then sell to an institutional owner.

So who's left holding the bag in the long run? Especially if the apartments have an expected life span of 15-20 years?
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Old 02-01-2013, 08:58 PM
 
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Well let's see. NYC apartments are only increasing in price, yet some of them are very old. If the demand to live in a certain area is there, it won't matter how old these apartments are.
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Old 02-01-2013, 11:05 PM
 
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I'm just saying that if you look at the typical 20 year old stick built apartment complex most of them are not exactly high end.
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Old 02-02-2013, 05:58 AM
 
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Quote:
Originally Posted by noah View Post
Less risk to the developer as its easier to rent the units at a high rental rate then spending several years selling all the units.

Why would apartments only have a 15-20 year life span? Even the IRS gives you depreciation for 27.5 yrs but of course they will last much longer, especially in these prime locations.
Quote:
Originally Posted by Ant131531 View Post
Well let's see. NYC apartments are only increasing in price, yet some of them are very old. If the demand to live in a certain area is there, it won't matter how old these apartments are.
Quote:
Originally Posted by arjay57 View Post
I'm just saying that if you look at the typical 20 year old stick built apartment complex most of them are not exactly high end.
Historically, in the Southeast, apartments have not aged well. Remember, home ownership has been king/queen in this region and most people, unlike NYC, don't envision being life long renters.

Will the changing economy change this? Hard to say, but some Southeastern cities are actually looking to cap apartment construction because of fears, not for today, but 10-20 years down the road.

While location is important, newness is also a factor for many renters. So, if a new complex comes into the general area, it often drives the rent down of existing units, sometimes within just a few years of opening. Older complexes are often not well maintained.

As I said it is going to be hard to tell if we have a generation that won't aspire to home ownership, instead be wiling to be long term renters in order to live in a certain location. Additionally, if demand stays high in an area, perhaps new apartment complexes won't decline quite as rapidly.
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Old 02-02-2013, 10:35 AM
 
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I think you have a good point but for some of these high rise and other new apartments being built in the city to be top of the line they will do well far into the future. Midtown is filled with apartment buildings (and office buildings) that were turned into condos and many people love living in them even if they are over 20 years old.

The feeling seems to be that some of these nice buildings will be turned to condo at some point which makes a lot of sense if you look historically. But every city also needs well placed nice apartment buildings as well, something midtown has lacked in recent years.

Quote:
Originally Posted by lastminutemom View Post
Historically, in the Southeast, apartments have not aged well. Remember, home ownership has been king/queen in this region and most people, unlike NYC, don't envision being life long renters.

Will the changing economy change this? Hard to say, but some Southeastern cities are actually looking to cap apartment construction because of fears, not for today, but 10-20 years down the road.

While location is important, newness is also a factor for many renters. So, if a new complex comes into the general area, it often drives the rent down of existing units, sometimes within just a few years of opening. Older complexes are often not well maintained.

As I said it is going to be hard to tell if we have a generation that won't aspire to home ownership, instead be wiling to be long term renters in order to live in a certain location. Additionally, if demand stays high in an area, perhaps new apartment complexes won't decline quite as rapidly.
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Old 02-03-2013, 12:11 AM
 
Location: ATL
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I'm Moving to this area once PCM opens
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Old 02-03-2013, 01:50 AM
 
Location: atlanta
3,974 posts, read 4,577,833 times
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Quote:
Originally Posted by Ant131531 View Post
Well let's see. NYC apartments are only increasing in price, yet some of them are very old. If the demand to live in a certain area is there, it won't matter how old these apartments are.
the thing about NYC apartments though is that they were *well* built a long time ago. well-built apartment complexes today with a concrete and metal core like skyhouse will still be popular years from now, however a lot of the low-rise apartments that are basically built out of plywood and stucco, will deteriorate and will be trashy 20 years from now. that's why i'm concerned about a lot of the low rise apartments going up in town, they don't have to meet the same structural standards as tall buildings do and i'm afraid they will be like projects 20 years from now.
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Old 02-04-2013, 08:55 AM
 
Location: Kirkwood
22,209 posts, read 16,245,820 times
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Quote:
however a lot of the low-rise apartments that are basically built out of plywood and stucco, will deteriorate and will be trashy 20 years from now.
EG: Garden style apartments. Most Post and Gables complexes.
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Old 06-04-2013, 01:28 AM
 
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Anyone know when the apartments will be available? Just noticed that they opened up a website for them today: Flats at Ponce City Market
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