Stalled piece of River North finally back on? (Victoria, Bowie: section 8, real estate)

[jwebtx]

"On Thursday, developers of 1221 Broadway, the stalled mixed-use project on Broadway at U.S. 281, secured the final piece of the project's financing, a loan by the U.S. Department of Housing and Urban Development. Since October 2004, the project has sat as a set of highly-visible, unfinished concrete-steel shells. The project is envisioned as a combination of apartments and retail and office space, and regarded as the first major piece of River North."

The Downtown Blog (http://blogs.mysanantonio.com/weblogs/downtown/2010/10/final-piece-of-funding-secured.html - broken link)

Ill believe it when I see it, but great news if it proves true.

[Proffer]

Great, now the future residents need to decide if they want to travel far for a gym and a grocery store.

[Bo]

So if it's HUD-funded, will it be Section 8 housing? That seems like it might scare off the most attractive commercial tenants from a mixed-use project.

[TexasRedneck]

Bowie - how on EARTH can you say that?!?? EVERYONE knows that those in Section 8 housing are there only because *the man* keeps 'em there...

<tongue in cheek>
just realizing that I'm harassing a Mod....<G>

[Chaka]

Originally Posted by Bowie

So if it's HUD-funded, will it be Section 8 housing? That seems like it might scare off the most attractive commercial tenants from a mixed-use project.

I'm not entirely sure of the details, so please correct me if I'm wrong. But i think it'll depend on how much is HUD-funded. The old Victoria Courts development (HemisView is the latest) is partially funded for Section 8 housing, but only partially. This has allowed for some section 8 but also for market rate units.

While there are likely to be some negative comments, for the most part, residents have been happy with this arrangement. The key is the relative ratio of section 8 to market rate. At one point the developer tried to increase the section 8 units so they could get more government funds, but that was fought so they stuck with the original plan.

While those developments aren't mixed-use, if they're following the same concept, I suspect commercial tenants will still be interested. It's a difficult location though - beautiful spot by the river and not far from the Art Museum and the rest of Broadway, but it's not really a simple walk to most other useful places - it's a bit of a hike into downtown proper, and the area directly adjacent is not the best. So, the whole area needs to improve for commercial tenants to really be attracted to it. Hopefully this will be the first step.

[dvlpr]

Originally Posted by Chaka

I'm not entirely sure of the details, so please correct me if I'm wrong. But i think it'll depend on how much is HUD-funded. The old Victoria Courts development (HemisView is the latest) is partially funded for Section 8 housing, but only partially. This has allowed for some section 8 but also for market rate units.

While there are likely to be some negative comments, for the most part, residents have been happy with this arrangement. The key is the relative ratio of section 8 to market rate. At one point the developer tried to increase the section 8 units so they could get more government funds, but that was fought so they stuck with the original plan.

While those developments aren't mixed-use, if they're following the same concept, I suspect commercial tenants will still be interested. It's a difficult location though - beautiful spot by the river and not far from the Art Museum and the rest of Broadway, but it's not really a simple walk to most other useful places - it's a bit of a hike into downtown proper, and the area directly adjacent is not the best. So, the whole area needs to improve for commercial tenants to really be attracted to it. Hopefully this will be the first step.

The project is financed using a HUD program called 221(d)(4). "D4" is the real estate slang. D4 projects have NO affordability guidelines. The projects are 100% market rate (Cadillac Lofts, for instance, was financed with D4).

And, yes, 1221 Broadway was approved for D4 financing by HUD, so barring some unforeseen problem, construction should start in the next 30-60 days. This will be great for the area; more residents are precisely what that area needs.

[dvlpr]

Originally Posted by Proffer

Great, now the future residents need to decide if they want to travel far for a gym and a grocery store.

You're not informed.

Central Market is two miles away. The HEB on Olmos is 3 miles away. The downtown Spectrum is 1 mile away. The YMCA on St. Mary's is about a mile and a half. And you can easily use transit to get to any of them.

And think for a moment about the things the future residents can easily walk/bike to: Riverwalk, Pearl Farmer's Market, restaurants at the Pearl, live music at Sam's (or the Ten Eleven, or The Mix, or White Rabbit), the bars on St. Mary's, Brackenridge Park, and, of course, anything downtown.

Yeah...what a tough decision...who would want to live down there?

[ShaneSA]

If you build it they will come. Once the building and grounds are complete, it will be a starter for others to be a part of the renewal. Let's be optimistic.

[Bo]

Originally Posted by dvlpr

The project is financed using a HUD program called 221(d)(4). "D4" is the real estate slang. D4 projects have NO affordability guidelines. The projects are 100% market rate (Cadillac Lofts, for instance, was financed with D4).

Thanks. That was helpful to understanding the project and the funding mix.