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Atlanta had a brand new 400 unit class A highrise building lease up in 3 months?
I don't think I have ever heard of that. Which building in Atlanta?
Just so you know, the average time to lease a brand new highrise class A building with 400+ units is about 2 years or 24 months. I'm assuming, in Atlantas case, that may be the lack of new supply at that level. DC proper delivered 14,000 multifamily housing units last year alone. I would like to know which building in Atlanta did that though. The amenity package and location had to be out of this world to accomplish such a feat.
Uh, yea. I can attest to this. I know of both high rises and mid-rises of 250-350 units that stabilized in 3-6 months, in Atlanta. It happens frequently in an up market. A building that would have opened in 2008/2009 requiring top dollar rents (aka a new building) would have had trouble, but 2005-2007 things flew off the shelf. And in this cycle, we are in the equivalent of 2005-2007.
Trust, DC has buildings lease up this fast, too. Your stats for lease-up are way off and nobody would EVER underwrite such a terrible deal. Geez, I can tell you don't work in real estate.
In SF, nearly all of our new projects literally open almost leased up. NEMA was 754 units (now renting for an average of $6/$6.50 per square foot ) and it leased up in astonishing time.
Amenity packages have little to do with supply and demand. They assist most when there is a lot of competition, but if there is way more demand than actual supply (aka an up market playing catch up after a recession, like in Atlanta), then you could probably build a prison, call it Sunshine Towers, include a laundry room, and lease it up no problem to people willing to pay more than they should for it. If you are opening at the same time as 20 other Sunshine Towers and demand isn't *that* great, then you want differentiation. Also, when you simply operate an apartment and plan to hold it for a few years or more through a couple cycles.
I can assure you that people in SF are renting absolute dumps now for way more than they are renting the nicest units in the most amenitized buildings in DC, based on pure supply/demand. There is A LOT of demand, and relatively limited supply of new stuff here. In 2009 this would not have been the case. Nor in 2001/2002/2003.
Uh, yea. I can attest to this. I know of both high rises and mid-rises of 250-350 units that stabilized in 3-6 months, in Atlanta. It happens frequently in an up market. A building that would have opened in 2008/2009 requiring top dollar rents (aka a new building) would have had trouble, but 2005-2007 things flew off the shelf. And in this cycle, we are in the equivalent of 2005-2007.
Trust, DC has buildings lease up this fast, too. Your stats for lease-up are way off and nobody would EVER underwrite such a terrible deal. Geez, I can tell you don't work in real estate.
In SF, nearly all of our new projects literally open almost leased up. NEMA was 754 units (now renting for an average of $6/$6.50 per square foot ) and it leased up in astonishing time.
Amenity packages have little to do with supply and demand. They assist most when there is a lot of competition, but if there is way more demand than actual supply (aka an up market playing catch up after a recession, like in Atlanta), then you could probably build a prison, call it Sunshine Towers, include a laundry room, and lease it up no problem to people willing to pay more than they should for it. If you are opening at the same time as 20 other Sunshine Towers and demand isn't *that* great, then you want differentiation. Also, when you simply operate an apartment and plan to hold it for a few years or more through a couple cycles.
I can assure you that people in SF are renting absolute dumps now for way more than they are renting the nicest units in the most amenitized buildings in DC, based on pure supply/demand. There is A LOT of demand, and relatively limited supply of new stuff here. In 2009 this would not have been the case. Nor in 2001/2002/2003.
Well, the context of the comparison was to DC proper which is 61 sq. miles in size delivering 24,000 units between last year and this year and how apartment buildings at 400-500 units are still leasing up in 9 months with such a high supply. I could understand smaller buildings at 250 units doing that, but we're not talking about that so what you're talking about seems to be irrelevant when looking at the actual factors being discussed.
Oh ok, so a 400 unit brand new mid-rise leased up in 3 months? What is the name of the building?
I know AMLI Ponce Park leased up very fast....At this moment, I've heard it's around 98 or 99% occupancy. Inman Quarter which also leased up very fast and opened back in January 2015...currently only 4 units available. Skyhouse South, a highrise in Midtown leased fast also.
Alexan at Krog, an apartment midrise that hasn't even been completed yet only has 15 units left.
I mean, before our current Midtown building boom, Midtown only built around 1300 or so units between 2010 and 2014.
I know AMLI Ponce Park leased up very fast....At this moment, I've heard it's around 98 or 99% occupancy. Inman Quarter which also leased up very fast and opened back in January 2015...currently only 4 units available. Skyhouse South, a highrise in Midtown leased fast also.
Alexan at Krog, an apartment midrise that hasn't even been completed yet only has 15 units left.
I mean, before our current Midtown building boom, Midtown only built around 1300 or so units between 2010 and 2014.
That's great! Yeah, as I said in my first post, I figured it was because of built up demand which makes sense. You said "9 months?" asking why it was taking that long versus 3 months for Atlanta in your post reply to me, but that has more to do with builtup demand from a lack of construction activity versus sustained record absorption along with record supply like DC is seeing with 9 month lease ups for 400 unit buildings with a 24,000 unit delivery over 2 years in a city proper of 61 sq. miles. That doesn't include any units in the suburbs either by the way.
That's great! Yeah, as I said in my first post, I figured it was because of built up demand which makes sense. You said "9 months?" asking why it was taking that long versus 3 months for Atlanta in your post reply to me, but that has more to do with buildup demand from a lack of construction activity versus sustained record leasing along with record supply like DC is seeing with 9 month lease ups of 400 unit buildings with a 24,000 two year supply in the city proper of 61 sq. miles alone.
I said that. I said I was impressed that DC is still booming this much given it's been 7 years straight now.
Well, the context of the comparison was to DC proper which is 61 sq. miles in size delivering 24,000 units between last year and this year and how apartment buildings at 400-500 units are still leasing up in 9 months with such a high supply. I could understand smaller buildings at 250 units doing that, but we're not talking about that so what you're talking about seems to be irrelevant when looking at the actual factors being discussed.
Well and most groups building something in DC are also holding onto those investments after completion, in many cases for many years. Different kind of money. SF attracts similar apartment money. Atlanta attracts many groups looking to do the development, and then sell to an entity looking to acquire (and likely hold for less time on average than in DC).
But still, 2 years to stabilize an apartment building upon completion. That's just absurd. That's when you know the market is overbuilt. Logical to underwrite 12 months and then hope for and perhaps expect 6-9 months, and then maybe kill it and get 3 months, but 24 months? It's 24+ months to build and then 24 months to stabilize? That timeframe alone presents a lot of limitations.
I'm a long time reader, but first time poster on city-data.com. I love reading about the things happening in the cities across our country on here. I was wondering, which city has the most major projects in the planning stages? Please include:
-Mass Transit Expansions
-New Major Infill Development Projects
-Multi-Modal Transit Projects
-Urban Park Construction
-New Entertainment Complexes
-Sustainability Projects
I look forward to reading and learning more about each city. May the best city win!
my argument for Houston..
Transit
- 2 new light rail lines
- recently broke ground on an uptown BRT line
- doing studies for commuter rail
- Texas Central Partners recently received $75 million in private financing to move forward on the development planning of a high-speed rail line from Houston to Dallas (the nations first true HSR is now one step closer to reality)
- Grand Parkway segments F1, F2, and G are under construction as TxDot works towards completing the longest loop in the nation
Development
- 2nd in the nation, behind NYC in apartment construction
- billions of dollars in development taking place downtown
- tens of billions of dollars in plant expansions on the east side
- $3.2 billion in hospital development
- $1 billion+ Exxon campus near The Woodlands
- $10 billion 2,000 acre Springwoods Village/CityPlace master planned development around Exxons campus
- $5 billion+ 4,000 acre Generation Park master planned development in Northeast Houston
- 2,000 acre Grand Central Park master planned development near Conroe
- $1 billion Republic Square 35 acre development in the Energy Corridor
- $275 million River Oaks District mixed use development/ultra high end shopping destination
- redevelopment of the 30 acre Westcreek apartment complex into a cluster of high rise residential and hotels (here are a few of the projects with renderings released.. Arabella, SkyHouse River Oaks, Wilshire, Gables Westcreek, River Oaks District Phase II)
Multi-Modal Transit Projects
- unfortunately nothing major yet. Uptown has their Uptown intra-modal transit center in the works. obviously the High Speed Rail company has been scouring the city for locations to build their big transit center/mixed use development.
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