Cork Factory Condo Conversion? (for sale, apartments, leasing)

[djihpgh34]

I've heard rumors for a while now about what will happen with The Cork Factory over the next 5 years. People are saying some or all of the units will be converted into condos.

Anyone have any information on this? I wonder, if it happens, where the price will start.

[Windwalker]

I just visited the cork factory apartments, and I asked then if there were any condos in the bldng because it already feels like condo living. But I dunno the answer to your ?

Actually, why would they sell when they can charge $1200/mth for a 780 sq ft apartment overlooking the parking lot (not the river) and they're 90% occupied at all times? They'd be silly to sell that cash cow!

[BrianTH]

Obviously there is some price at which any deal could be made, but I agree with Windwalker: right now they are in a more favorable rental market than ownership market, so I am not quite sure I see the incentive. That said, they are probably looking at the same articles and stats I am and contemplating the likelihood of eventually facing a lot more competition in the rental market, and I suppose it may make sense to start getting out of that market in anticipation.

[guylocke]

Well half-half is usually the best way to go for financial security. Condo's guarantee long-term tenants that far exceeds the security of fickle renters. Plus they make much larger sums of money selling, and although in the VERYYYY long run it might be better to rent them all, there is more financial stability having mixed use. Plus, some people don't rent because they want to own (so they can knock down walls and paint and all that stuff if they chose) so maybe they can lick that last 10% with buyers.

Condo's STILL entail maintenance fees every month of which the Cork Factory would STILL make profit, even if it's only a couple hundred dollars a month fee.

[TRO Z]

That property was developed by McCaffery & Assoc. out of Chicago...They are high end leasing specialists....They will only convert those to condos, if the occupancy rate would continue to hold in the mid 60% range...

They have most recently shown up on several of our boards for short term and furnished corporate housing..So they are certainly chasing the out of town money and I believe trying to target the people who want to live in the loft style condos or apartments downtown...But cant afford the price tag associatecd with them...

I am actually impressed with what they achieved...I think 9.3 million in rehab for that building was ridiculous, but it's certainly impressive

[gallacus]

I was told by someone at that building that the builders used lots of historic renovation grants that came with the stipulation that all units must remain rentals for a period of time (I think 5 years). At that time, they plan to sell off the units in 1 of the 3 buildings as condos, but there is lots of interest, and people who are renting when the units go up for sale will get first dibs on units.

[TRO Z]

gallacus,

I dont mean sound rude here, but every dollar of the 70 million was private funding.....They may have received historic tax credits to help with that future burden..

But I know 100% for a fact, they used private money and only will execute the costs of condo conversions if the property runs below 65% occupancy (that's their exit strategy) ...Which I don't see that happening anytime soon..