beautyfromashes wrote:KCroots- I guess you have to explain your demographic. I assumed a grandiose, high end development since you were talking about it being a type of crowning achievement to leave as a legacy to your life and family. Perhaps, I read more into it than that. That is why I brought up 1PP. That would be my thoughts on a comparable and I thought it might give you ideas on where the market is and what not to do.
I agree with you about frugality, especially in the younger generation. This shows itself in their contempt for cars. They want to be very close to amenities or public transportation. This is out of a rebellion from the 'boring' suburbs that they grew up in and a desire to live life for experience instead of wealth. This might make them sound cheap, but they actually will spend good money on what is important to them. If they can be close to shopping, nightlife, grocery stores, good jobs, etc. they will pay significantly more knowing that they can get by without a car or only need one for a couple. They will be frugal to exchange it for what is actually desired--experience. This is why I would suggest being as close to amenities or the streetcar line as possible.
The Abdiana would be a good development and has been somewhat of a white elephant on this board. It's sat with little to no activity and an owner who seems content to not do anything with it. It's close to bars and some restaurants but large patches of parking lots break up the walkability. It would be a great project, truly fitting of being called a legacy if developed correctly. It's development alone with good residential on the upper floors would be a great boost for the area and would sustain the businesses you have mentioned.
LOL, No this development would not be any sort of crowning achievement to any type of legacy family or otherwise. My wife and I are simply very fortunate in life and although blessed in many ways we never were blessed with children. Maybe this is why we have what we have but that’s another issue. At some time I plan to sell what we currently have and enjoy my final days back where I started and thus the idea of such a project. But let me move on as I really don't care to delve into my personal life on such a public and open board.
I myself am very frugal in terms of spending money when not needed but like many others I do like nice things. I agree with you regarding people in general, they too are frugal these days but they will spend money on things they deem important or needed.
Who doesn’t like to be surrounded by nice things? Most people do but at the same time most people also don’t like to be gouged for their desire for nice things. This development would be very nice but very accessible and affordable with the exception of the Men’s Apparel Store, but that’s due to the fact that nice Men’s clothing and shoes have always been expensive because of their quality.
The restaurant and apartments however would be very affordable simply because that’s just me respecting the fact I myself don’t like to be gouged even though I might be able to afford a nice meal or a place to live who likes to feel they are being taken advantage of or financially abused? The banks already do a good enough job of that on their own.
As for the apartment units (NOT LOFTS) I would like to have small units, possibly 500 sq feet. I’d like to have very low sq footage rates for the rent so that the apartments are considered VERY affordable. I’m not sure what the current sq footage rates for living space / apartments are in the cross roads area (Anyone?) but I would guarantee that if this project goes through that the price per sq ft would be the lowest in the entire downtown area
I’m of the thinking that it’s better to have all the units rented out at a lower rental rate with longer leases than to try to gouge people over the price of the units. I think many developers make this mistake due to desperation for profit and general revenue. They fail to see the benefits of providing a very good product (Rental Unit) at a very low long term rental rate.
For example it can cost a lot of money to turn an apartment. In many cases the landlord has to go in and fill holes in the wall where the previous tenant had items and pictures hung on the walls, then the unit has to be entirely repainted. Many times a new tenant also demands that any carpeting be replaced with new carpet as the previous tenant left it smelling bad or had pets or the painters spilled paint on it and had to use strong chemicals to get the paint out etc. Thus turning or doing a “Make-ready” of regular units is costly especially if you’re doing this every year and doing multiple units. People move when the “New” feeling wears off especially when they feel their rents are just not justified.
By having a really low rental rate tenants often appreciate the low rental rate and have a hard time justifying any move to a new place apart from being forced due to a job transfer. Especially when they know their rent is going to increase substantially and then the hassle of the moving and mover is costly.
With a lower rental rate renters are more inclined to sign longer leases to lock in the good rate, oftentimes a 2 to 3 year lease. Therefore the longer a tenant stays in a rental unit the less painting and turning the unit is required, which lowers the landlords cost which then they can pass onto the tenant.
Another benefit of lower rental rates is that your inventory of units will always remain rented. It’s better to have all your units rented at a lower rate than having them be expensive and half empty. How many loft apartments are half empty in downtown? (Maybe their “lofty” prices are part of the reason)
Also the more people who live in the building the better off the overall place feels. This also results in the less work for the landlord in terms of renting or turning apartments all the time. Therefore everyone wins.
The restaurant is operated along the same line of thinking in terms of cost / price. When you’re paying 3 dollars for an egg plate breakfast you really can’t expect to complain because it’s a simple 3 dollar meal that’s hard to mess up, and even if it gets messed up it’s a 3 dollar egg plate. Now if you’re paying 15 bucks for the same egg breakfast elsewhere then that’s your business and I’m sure you’re the type that would expect to see the menu claim the hens are organically pasture fed and raised on an Amish farm consisting of rolling hills and the eggs are picked up by hand and then delivered to the restaurant each morning in a hybrid / electric delivery truck just after they were laid. If that’s your cup of tea then go for it, I just want a place where I can go downstairs at any time of the day or night and get something simple and cheap to eat.
I personally like pizza especially the homemade kind and that’s why the added pizza to the menu. I just like to eat simple easy cheap meals like a Waffle House serves. You know eat an omelet or have some fried eggs and the option of being able to have a waffle or pancakes with sausage patties or something like that. Then in the afternoon or late night maybe order a healthy homemade pizza without all those chemical preservatives, or a simple patty melt. I’m just not the type to eat at Michelin Star restaurants every day. I personally prefer to go the simple route. I don’t like to pay too much for such simple things, and I don’t expect others to either. Water in a restaurant should be free, refills on fountain sodas should be free, and the meals should all be under 10 dollars in such a simple diner, unless you’re getting steak and eggs meal, but that jut goes without saying.
The same thinking applies with the restaurant that goes with the apartments, I think if you have a decent low price and decent service your tables are always full and you make enough money to support the place. It’s better to make a little money on a lot of tables than to have a half empty restaurant where you’re trying to make those few tables / customers support the entire operation.
I also feel apart from investing in the community with such a development is the low prices at the restaurant and rental rates of the apartments are a more important way to give back to the local community. There is nothing more aggravating to me than some new trendy cheaply slapped together loft / apartment development that feels they have to charge outrageous prices so the “investors” can make their money back in 8 years. Then the building is falling apart and in another 15 years will be bulldozed and replaced with something new to win investors more money. Such greed is aggravating to me.
As for this Firestone building, I really don’t know much about the building but if the owner is the type to sit on properties and this has been one of those properties, then it makes buying it much more difficult since he doesn’t have any motivation to sell. Maybe if this project is meant to be then things will happen if not then it’s off to other areas to consider. That and the fact I am just really getting started researching all the options.