Developers build in East Liberty while Pittsburgh employment stagnates (Penn: rentals, mover)

[greg42]

It's a lot of residential units at once that's for sure, probably more than downtown has seen over the last couple years. But, it's quite possible they could be absorbed. It might be at the expense of the rental price of older units in the vicinity, which wouldn't necessarily be a bad thing. There has been a lack of significant NEW residential over the years, so there is perhaps some pent-up demand. I'd consider living over there if the rent is right. The rent on these new places will probably be too damn high for me though.

The ELP retail seems to be at the "wrong end" of the area right now, this is true. I don't think it's the amount so much as the placement. It's not next to where most other stuff is happening. (Retail really likes to be next to itself, seems like.) Mosites has a track record of filling that stuff up so I suspect what they're doing with the new Eastside segment retail will work out okay.

[selltheburgh]

the greedy speculation made a lot of money for the banks and wall street, but developers lost their shirts during the boom and 2008 bust. Being stuck with 200 vacant units out of 400 doesn't make you rich. It bankrupts you.

Believe me, commercial financing is much more difficult than it was 10 years ago. I don't know the banking structure for all of these deals in East Liberty, but I do know that there's a personal guarantee needed by the developers or managers for lots of new developments in today's banking world. That means that they'll lose their house, savings, etc. They can't just fold their LLC or LP and call it a day like in the olden days.

[CFP]

Originally Posted by selltheburgh

My speculations:

He either sold a property for peanuts or closed a business in East Liberty during the worst times in East Lib
or
He's upset that he vaguely remembers the heyday and probably won't live long enough to see it happen again.
or
He's secretly hating on development and is in fear of gentrification under the guise of wealthy old shadysider
or
He's a general pessimist when it comes to most things

more useless speculation and no facts
when all else fails, attack the man

[FreightTrainRunning]

no way in this economy is there enough demand to meet the supply of 876 new market rate apartments in EL

You do realize that Pittsburgh has one of the lowest apartment vacancy rates in the country right now? And that rents are going up and up? And that every other apartment building in the city has leased out quickly? It may be a lot of units but there's obviously a lot of demand.

[_Buster]

Originally Posted by CFP

a lot of developers and banks put their capital on the line during the housing boom
they had to be bailed out in case you hadn't heard because their greedy speculation was not based on real demand but on easy credit

except for college and a few year after graduation i have lived in the shadyside, east liberty, squirrel hill area my entire life and my office is in east liberty now on whitfield street

i am commenting on what in my opinion is irrationally exuberant real estate speculation in EL,
and i am making a prediction that most of it will end in a lot of shiny new empty space

Well if any of them are going to be subprime loans then you might have a point, but I doubt they will be. I think these are mostly apartments anyway not condos. The loosening of lending standards by Fannie Me and Freddie Mac from 2004 -2008 is what caused the housing meltdown. Otherwise lenders would not have taken the risk. They knew Fannie and Freddie would buy them and package them into MBS, which they did and sold them from their trading floors to suckers.

So I guess it's up to you to figure out if they are doing subprime or Alt-A loans on these projects.

i'm not promising anything - i'm making a bet based on a well-informed opinion

correct me if I'm wrong, but there have to be at least two parties involved to make a bet. all you did was make a promise to buy drinks. I really doubt anyone's gonna offer you drinks if you are right and East Lib is a failure.

why do you think you are well-informed? you haven't told us your qualifications...

[SteelCityRising]

Originally Posted by GeneW

And that rents are going up and up? And that every other apartment building in the city has leased out quickly? It may be a lot of units but there's obviously a lot of demand.

Say it with me folks...

East
End
Housing
Crisis!

[markson33]

The Highland Building is getting just about the highest rents in the city. Is it possible that the East End could get overbuilt... sure, but there is clearly enough room for more absorption.

The retail for Eastside is doing fine - most of the complex is already pre-leased.

ELP is struggling due to A) location, B) parking, C) a developer who doesn't typically do retail. These buildings were built with affordable housing in mind, not retail.

Broad Street is doing just fine - there is actually just 5,000 SF of retail available on the street, which isn't much.

There is plenty of room for more hotel rooms in the East End as evidenced by the DRR and sales prices of the hotels currently located there. Again, maybe it will get overbuilt... but as it stands all of these hotels will probably do just fine.

The Odeon should start construction soon, now that Walnut Capital has taken over.

[sealie]

Originally Posted by SteelCityRising

Say it with me folks...

East
End
Housing
Crisis!

Call it an entry level professional salary crisis and I will get on board.

[Caladium]

how about a "people misusing the word 'crisis' crisis" ?

[PghYinzer]

Originally Posted by sealie

call it an entry level professional salary crisis and i will get on board.

^^^^^^^^^^^^^^^^exactly^^^^^^^^^^^^^^^^